SRS: What Is It?

It’s getting expensive to retire. With Singaporeans expecting a higher standard of living as time goes by, the CPF Minimum Sum has been increased to $155,000. But with that amount, you are entitled to approximately $1,200 per month during your retirement.

Now, Think back. Do you think that is sufficient for you to sustain your current lifestyle? If your answer is no, you can consider looking into opening an SRS account.

What is SRS?

The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings. Contributions to SRS are eligible for tax relief. Investment returns are tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement.

You are able to open an SRS account as long as you are at least 18 years of age, not an undischarged bankrupt, and you are not suffering from a mental disorder. To open the account, all you have to do is submit an online application at either DBS, UOB or OCBC.

Why should I sign up for SRS?

With SRS, you are able to cut down on your tax savings, while also saving for your retirement.Every year, Singaporeans and PRs can deduct from their taxable income up to $15,300 SGD by contributing the amount to an SRS account. Each dollar of SRS contribution will reduce your income chargeable to tax by a dollar, and you are able to accumulate your investment gains tax free!

That sounds great right? But did you know you could also grow the money in your SRS account?

With AIA Plans like the Retirement Saver (III), Smart Wealth Builder, InvestEasy and Platinum Retirement Elite, not only are you able to save money on taxes, but you are also able to make your money work for you. Learn More here!

Planning for your retirement may seem far away and daunting, but it is essential to start early. By investing and saving in your earlier years you’re able to accumulate more wealth by the time you reach your desired retirement age. Should you require any help with your financial planning, do not hesitate to contact any of our financial service advisors here!

Still confused about SRS or have more questions? Join our SRS webinar now and learn how to make more doing less!

Limited slots available.

Sign up now!

And remember financial planning does not mean a stressful journey!