The Supplementary Retirement Scheme (SRS) is part of the Government’s multi-pronged strategy to address the financial needs of a greying population. It is a voluntary scheme that complements the CPF. Participants can contribute a varying amount to SRS (subject to a cap) at their own discretion.
What can SRS be used for?
SRS gives you the flexibility to withdraw your SRS funds in cash or investments. Depending on your needs and lifestyle, you may choose to make a lump sum withdrawal, or spread it out over 10 years^. All withdrawals are subject to 50% tax concession, including annuity streams. Here’s an illustration of how it works.
Who is eligible for SRS?
You are eligible to sign up for an SRS account if you are a Singaporean, Permanent Resident (PR) or foreigner; at least 18 years old and not an undischarged bankrupt; have no existing or pending SRS account or account application with any bank; and can contribute varying amounts, subjected to a cap.
Is it worth putting money in SRS?
The main advantage of depositing money in your SRS account is the tax breaks. If you do participate in the SRS, it should be because you wish to lower your tax liabilities. For those who are earning more than $40,000 a year, the savings can be quite significant.
How do I deposit money into SRS?
Log in to digibank Online with your User ID & PIN.Complete the Authentication Process.Select Transfer and click To My Account.Select the Account you wish to contribute from. Select the SRS Account you wish to make your contribution to. Indicate the Amount you wish to contribute and click Next.
Can I withdraw SRS money?
You may withdraw funds from your SRS account any time. Withdrawals can be made: Withdrawals in the form of monies or investment from your SRS Account are subject to income tax and added to your other taxable income (e.g. employment, rental). It will be taxed based on the prevailing tax rate.
Can I use SRS to buy US stocks?
In general, it’s not allowed. However, if you have a Phillip Managed Account, SRS funds can be used to buy foreign shares, but the purchase decision (which stock, what price, etc) lies with the team running the managed account.
Can I use SRS to buy stocks?
Yes you can. Before submitting an SRS trade, you need to open an SRS Investment Account with an agent bank. The SRS Investment Scheme account number also needs to be updated into your Trading account with us.
When can withdraw SRS?
To encourage individuals to withdraw their SRS savings at age 62 (the statutory retirement age prevailing at the time of an SRS member’s first SRS contribution) or later, the Government grants a 50% tax concession for such withdrawals (i.e. only 50% of the withdrawal is subject to tax).
What is SRS interest rate?
Unlike CPF funds which earn 2.5% interest per annum, the interest rate on SRS funds is fixed at 0.05% per annum. It’s probably not such a great idea to just maintain your retirement savings and save for rainy days ahead.
Which bank is best for SRS?
Which are the best SRS account opening promotions in 2022?
DBS SRS account.OCBC SRS account.UOB SRS account.
How much is CPF LIFE payout?
There is a maximum for CPF LIFE: It’s pegged to the Enhanced Retirement Sum ($288,000 this year). So for those who are 55 this year, the highest CPF LIFE payout is $2,120 to $2,280 a month. And that’s for the Standard plan. If you opt for the Escalating plan, it will be even lower.
Is it better to top up CPF or SRS?
While we can invest our CPF Special Account monies, we cannot invest the portion that comes through topping up. This means, if we want the flexibility of investing in stocks or other asset classes, we may want to consider topping up our SRS account instead.
Why you should not top up CPF?
Here are the drawbacks of topping up your CPF: Your money is locked in and you can only withdraw your CPF savings at age 55. Cash is king! Plan your voluntary contributions properly, else it will affect your cash flow.
Is CPF enough for retirement?
It isn’t, according to a 2014 retirement survey by Manulife Financial Corp. Only a measly 20 per cent of respondents were confident that the CPF scheme could adequately meet their retirement needs.
Can I transfer SRS to another bank?
Contributions to SRS are considered part of your personal reliefs. Total personal reliefs, including SRS contributions, are capped at S$80,000. Can I transfer my SRS Account from other banks to OCBC? Yes, you can.
How do I withdraw from SRS DBS?
You can withdraw from your DBS SRS Account at any time before age 62, subjected to a 5% penalty for early withdrawal. 100% of the amount withdrawn will also be subjected to tax for that year. But in some cases, your tax savings over the years might outweigh the 5% penalty.
