The Supplementary Retirement Scheme (SRS) in Singapore is a voluntary savings platform designed to enhance retirement income and provide tax benefits for individuals. Launched in 2001, the SRS aims to encourage Singaporeans and permanent residents to save more for their retirement years, supplementing the mandatory Central Provident Fund (CPF) system.
Participants can contribute to their SRS accounts annually, with a maximum limit of SGD 15,300 for Singaporeans and Permanent Residents, and SGD 37,740 for foreigners. Contributions made to SRS accounts are eligible for tax relief, helping individuals reduce their taxable income. Furthermore, investment earnings within the SRS account are tax-exempt until withdrawal, allowing for potential growth without immediate tax implications.
Withdrawals from the SRS can be made from the statutory retirement age, but it is crucial to note that only 50% of the amount withdrawn is subject to income tax, leading to potential tax savings. The SRS also allows for a wide range of investment options, including stocks, bonds, and unit trusts, providing flexibility in building a diversified investment portfolio. Overall, the SRS is an effective tool for individuals seeking to secure their financial future during retirement while benefiting from favorable tax treatment.
Please do note that the above is based on my understanding, do refer to the CPF website for the most updated information.
So how can one supercharge his or her SRS? Let us watch the video below to find out now!