“The sky, the scenery, it was so peaceful,” she recalls. “I could see far into the distance. I thought to myself, ‘The world is beautiful. Life is beautiful.’ I was filled with hope. I felt that what I’d done was worth it.”
She snapped photos on her phone and sent them to friends, who asked her: Which hotel are you staying at, with such a wonderful view?
Her reply: Not a hotel. It was her new HDB flat.
In May 2025, she right-sized to a four-room HDB resale flat in Toa Payoh after selling her 1,600 sq ft freehold condominium in Upper Thomson.
Her husband had died about six years earlier and her three daughters have homes of their own. She realised it was time to move into a more manageable space.
“The condo was too big to maintain and I was paying $500 a month to the sinking fund and for maintenance, even though I wasn’t using the facilities,” says Madam Hsu, 72, a retired Chinese-language teacher and grandmother of seven.
After her husband’s passing, her daughters had offered to live with her or have her move in with them. But she preferred to live independently. “The young ones have their own lives to lead,” she says. “I don’t want to burden them.”
Working with property agents from ERA, she narrowed her search to Toa Payoh and Serangoon, where two of her daughters live. Toa Payoh ticked all the boxes: it was close to family, had a slower, more peaceful pace of life than Serangoon, her block was fairly new and near an MRT station, an important consideration for the day she stops driving.
It’s also near a church she’s familiar with and there are plenty of food, supermarket and clinic options. “There’s even a community centre for me to join and stay healthy,” she adds.
With the help of an interior designer, she renovated her 15-year-old HDB flat in a minimalist Japanese style with her twilight years in mind. “We imagined the day I might need a wheelchair,” she says.
Though Madam Hsu didn’t right-size for financial reasons, the surplus from selling her condominium has made her retirement even more comfortable.
She admits to feeling pangs of nostalgia when she thinks of her old home in Upper Thomson.
“I have many good memories there, when my husband was alive, when the grandchildren were small and crawling around, and I had good neighbours,” she says. “The house was very spacious and during festivities, we could seat 17 people around the table.”
But she has no regrets about moving to a smaller place.
“Sometimes, you need to start a new life. Don’t always live in sad memories.”
Should property be used to fund retirement?
While the terms “right-sizing” and “downsizing” are often used interchangeably to describe moving to a smaller home, there is a subtle difference, explains Mr Marcus Chu, chief executive of ERA Singapore.
Downsizing often happens as a response to financial pressures, whereas right-sizing is a deliberate choice to find a more suitable property. “For instance, an elderly couple whose children have moved out might choose to right-size due to their desire for a more manageable home, rather than being forced by financial circumstances,” he says.
Right-sizing purely to fund retirement isn’t all that common, says Ms Angeline Tan, director, financial services at Great Eastern Financial Advisers. In her 30-plus years as a financial planner, only between 5 per cent and 10 per cent of her clients have explored this option.
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She explains that many older home owners in Singapore bought their property to live in for the long term, not as investments. With homes being more affordable in the past, many were able to grow savings through other assets such as insurance, CPF and investments, and use them in retirement.
Those with extra funds may have bought an investment property, which can be sold or rented out to support retirement without needing to sell their primary home.
However, attitudes have shifted, notes Ms Tan. Housing has become increasingly viewed as a form of wealth accumulation given Singapore’s stable and appreciating property market.
The additional buyer’s stamp duty (ABSD) on property – introduced in 2011 and with rates steadily increasing since – has also influenced buying behaviour. Couples and singles now aim to buy and live in the largest property they can afford, so they own only one property and avoid the ABSD. Later in life, they may right-size to unlock that value for retirement.
Another group that may right-size are first-time home owners who bought a Build-To-Order (BTO) flat from the Housing Board. When they are close to retirement, they may apply for a second BTO flat near their children or siblings. If successful, they sell their existing flat on the resale market and use the proceeds to support retirement.
While right-sizing can support retirement, relying on this as the primary source of funds carries risks.
“The reality is that property wealth is not always easy to unlock,” says Ms Koh Hui-Jian, chief executive of Manulife Investments Singapore. Property is illiquid and may take time to sell, posing a problem if a retiree needs immediate cash for unexpected expenses.
Property is also tied to market cycles. Great Eastern’s Ms Tan says: “Your retirement years are fixed and do not adjust to these cycles.” Retiring during a market downturn could mean your property’s value is lower than expected, forcing you to sell for less.
Ms Koh points out that property comes with costs, whether in maintaining or financing it. “Most importantly,” she adds, “property alone may not generate the steady income streams that retirees increasingly value.”
She advises retirees to diversify their assets – which could include equities, bonds and other investments – to build financial resilience that can last 20 to 30 years beyond their working life.
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How to right-size properly
Mr Chu says that in 2021, about 28 per cent of transactions in ERA involving private home owners aged 60 and above were right-sizing moves. These were from condominiums to HDB flats, or from landed homes to condominiums.
In the first eight months of 2025, this figure dipped to around 22 per cent, likely due to the rising cost of replacement homes eating into sale proceeds and the challenge of finding a suitable next property. HDB-to-HDB right-sizing also occurs, though such cases are harder to track.
Still, Mr Chu says the trend is growing as Singapore’s population ages and multi-generational households become less common. For some, the loss of a spouse can prompt the move to a smaller space.
Before right-sizing to meet retirement needs, property experts suggest thinking through these factors:
1. Will the proceeds be enough?
It may seem obvious, but the proceeds from selling your home must be sufficient to sustain your retirement. Ms Michelle Yap, senior associate division director at PropNex Realty, stresses that the amount should be “good enough” to meet long-term needs.
Ms Tan from Great Eastern says that often-overlooked costs include the housing agent’s commission, early repayment penalties on the original housing loan, and renovation and furnishing expenses for the new home.
ERA’s Mr Chu cautions that while cashing out may seem attractive, it carries risks if funds are not managed carefully. “Without a clear plan, some may overspend, fall prey to scams, or in the worst case jeopardise both their new home and the capital they hoped to preserve,” he says.
2. Timing the move right
Even if you want to sell your property, there might be no takers.
Ms Jaye Yeo, senior associate director at PropNex Realty, notes that landed homes, especially, may take longer to find the right pool of buyers due to their higher price. Coordinating the sale of your current home with the purchase of your next one is also key to avoiding costly delays or temporary housing issues.
Ms Tan says that financially, it can be best to wait until a property appreciates, such as when the area undergoes a major transformation. She gives the example of her mother, who lived in a landed property where a new MRT line was announced in 2012.
Then in her early 70s, right-sizing was an option her mother had considered. But she decided to wait, and in 2021, an MRT station near her house opened. She moved into an apartment and sold her house in 2022, benefiting from the increased value. She also saved on renovation costs to maintain her landed property as she already knew she would be right-sizing when the time was right.
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3. Pick a location you’ll be proud of
If you’re moving to a smaller space, make sure the new area is one you genuinely like, whether for its environment, amenities or even for sentimental reasons.
“Find a location you can see yourself living in so it doesn’t feel like you are downgrading,” says Ms Yeo. She recalls a couple who right-sized from a terrace house in Paya Lebar to an HDB unit at Pinnacle@Duxton. “The husband had grown up in Duxton, loved the area and knew exactly that this was where he wanted to live in his old age.”
4. Be ready for social perceptions
Moving to a smaller home can sometimes be seen by others as a drop in social status, even if it brings more financial freedom and a simpler lifestyle. Being mentally prepared for such perceptions can make the transition easer.
5. Prepare for the emotional impact
Moving is more than a financial decision. It can be emotionally taxing. “More often than not, right-sizers underestimate the emotional impact of moving to a smaller or different home even when the financial surplus is compelling,” says Mr Chu.
6. Consider other options
If right-sizing is not for you, eligible HDB flat owners aged 65 and above can explore the Government’s Lease Buyback Scheme. Essentially, you sell part of your flat’s lease to HDB and get a cash bonus. Proceeds will be used to top up your CPF Retirement Account, boosting the monthly income from CPF Life.
For private property owners, Ms Tan says some banks offer reverse mortgage products but they come with risks such as high fees and accumulating interest. There is also the option of renting out a room in the house.
Emotional draw of home
For older adults, a home is more than just a physical space, says Ms Mavis Seow, senior principal clinical psychologist at the Institute of Mental Health. It holds years of memories, family moments and personal history, providing stability at a stage in life marked by retirement, health changes or the loss of loved ones.
Familiar surroundings also support cognitive function and independence. Knowing where things are reduces stress and cognitive load, and helps seniors feel independent and empowered.
Leaving a long-term home – whether to downsize or move into a care facility – often triggers a genuine grieving process, she says. Psychologists call this “place attachment grief”, which is the emotional pain, sadness and sense of loss when deep bonds with a home are disrupted.
“People often experience stages like bereavement and denial about the need to move, anger at circumstances that forced the change, bargaining to find ways to stay, depression about the loss and eventual acceptance,” Ms Seow notes. “This grief is real and valid as the home represents far more than bricks and mortar.”
Moving can also shake one’s identity. For many, their home is part of who they are, and leaving it can feel like losing a part of themselves. Losing connections with neighbours and the community can make things even harder.
If the move isn’t by choice, seniors may feel a loss of control, which can lead to anxiety, depression or resistance. These challenges can feel more intense with age as seniors have more memories tied to their homes and fewer years to build new attachments. Physical or cognitive limitations can make adapting to a new environment harder.
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Still, Ms Seow points out that “home” isn’t limited to a physical structure. Its essence – safety, comfort and sense of belonging – can be recreated in a new place, and this will lessen the anxiety of moving.
To make transitions easier, she suggests preparing mentally in advance, and to acknowledge feelings of sadness or anxiety as normal rather than irrational. Reframing the move as an opportunity rather than a loss can help retirees focus on the plus points, such as better amenities.
Involving seniors in decisions, such as choosing the location of the new home, gives them control. Creating “continuity bridges”, such as displaying cherished photographs in a familiar way, can preserve a sense of home. And once settled, it’s important to build new friendships and activities to stay connected, she says.
Mrs Florence Goh’s experience illustrates how thoughtful planning and support can make right-sizing a success.
After her husband died, she and her son continued to live in the family’s 1,600 sq ft ground floor condominium unit in Loyang. She decided to right-size about two years ago when her son had to move abroad. With help from PropNex agents, she found a three-room resale HDB flat in Strathmore Avenue in Queenstown. One of her two daughters lives in the same block.
Her flat is easier to manage and near amenities such as active ageing centres – she is a member of two centres – and MRT stations. Her only concern was living on the 25th floor as she was not used to high-rise living. Her children urged her to try using the lift herself. “After trying, I felt, no lah, it’s okay,” says Mrs Goh, 75.
She is thrilled by how low her utility bills are now, thanks to government rebates. She also loves the view. “I can see Marina Bay Sands and during the National Day period, I saw fireworks every week for a whole month.” The only downside has been that she misses her old neighbours, but they are still in touch.
Former teacher Madam Hsu shares two pieces of advice for those considering right-sizing. One, find a reliable property agent. She appreciates how her agents were patient and guided her on grants she was eligible for.
Two, right-size while you still have control of your situation and can decide on the timing, the sort of home you want to move to, and how the move is done.
“Do it while you still can,” Madam Hsu says, “when you still have a clear mind and the energy to pack, unpack, and handle renovations.”
Waiting too long could mean having to move under less desirable circumstances one day. “If you are too old, in the end you may just have to move to an old-age home.”
Sumiko Tan is Chief Columnist & Senior Editor, Publications at The Straits Times.
