Supplementary Retirement Scheme (SRS)


Supplementary Retirement Scheme (SRS)

Fund your Retirement with Tax savings

Do you feel a sense of dread when you receive mail bearing the above logo….well you are not alone….after all, who like paying taxes on your hard earned money?

Well, with Christmas just round the corner and as we go about our Christmas shopping….guess what? Uncle Sam has got goodies in store for YOU…up to S$3,366 in CASH!

Introducing SRS (Supplementary Retirement Scheme) which our government has set up for our benefit.

How you can benefit from SRS

  1. Simply place up to S$15,300 in cash deposit by year-end into your SRS account
  2. Every dollar in your SRS will qualify for tax relief i.e you pay less taxes as a result. Tax savings can be as high as $3,366 depending on your tax bracket (Please refer to income tax table below).

   That’s a hefty 20% GUARANTEED return on your deposit !

  1. Meanwhile, your SRS monies will earn nominal bank interest or you may choose to deploy it into an eligible retirement tool for a potentially higher return.
  1. Your SRS monies will accumulate tax-free till age 62, at which time you can choose to withdraw your SRS monies in one lump sum or spread it over as long as 10yrs.
  1. At age 62, only 50% of your withdrawals will be taxed at your then prevailing tax bracket.

   If you’re not earning any income then and if your withdrawal amount is below the minimum chargeable income, you will receive your monies tax-free!


Age 35

Tax bracket: 15% (assume unchanged till age 62)

Tax savings from a $15,300 SRS cash deposit = 0.15 x $15,300

= $2,295 Cash

Accumulated tax savings over over 28 yrs     = $64,260

Accumulated tax savings if invested at 7%p.a = $198,165

If withdrawal of the S$198,165 is spread over 10yrs,

withdrawal sum each year                                    = $19,816 tax-free!*

* First $20,000 chargeable income is tax free as at year of assessment 2016

Therefore, the opportunity cost of NOT participating in SRS in the above example is at least S$64,260.

So what are you waiting for? Take advantage of this ONCE A YEAR CASH OFFER from our government to SAVE YOUR TAX DOLLARS and use it to BUILD YOUR RETIREMENT FUND at the same time!

To take advantage of SRS, just drop me a note TODAY.

I hope the above has been useful to you and if it has, I would encourage you to forward this newsletter to your friends and loved ones, so that they too can benefit from it.



Straits Times article on SRS

Straits Times article on SRS_2017

SRS Booklet


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