What Is Supplemental Retirement Scheme In Singapore?
The Supplemental Retirement Scheme (SRS) is a voluntary retirement savings plan for Singapore citizens, permanent residents, and foreign employees working in Singapore. It is designed to supplement the Central Provident Fund (CPF) and provide an additional source of retirement income. If you are working in Singapore and looking for ways to save for your retirement, the SRS may be a good option to consider.
One of the key benefits of the SRS is that contributions are made with after-tax dollars, which means that they are eligible for tax deductions. This can help to reduce your overall tax burden and increase the amount of money you have available to save for retirement. The SRS also offers a competitive interest rate, which can help your savings grow over time.
To participate in the SRS, you must be at least 18 years old and must not have reached the age of 62. You can contribute up to a certain amount each year, and there are limits on the total amount you can contribute over the course of your lifetime. The SRS has two accounts – the Retirement Account (RA) and the Medisave Account (MA). The RA is used for retirement savings and the MA is used to pay for medical expenses in old age.
At age 62, you can choose to withdraw a portion of the money in your RA as a lump sum and use the remainder to purchase a life annuity or other retirement income product. Alternatively, you can choose to withdraw the entire balance as a lump sum or transfer it to your CPF account.
The SRS is a flexible retirement savings plan that offers a range of options for saving for your retirement. By making regular contributions and taking advantage of the SRS’s tax benefits and competitive interest rate, you can build a solid foundation for your retirement years. So if you are working in Singapore and looking for ways to save for your retirement, the SRS is definitely worth considering.