Can you invest in SRS?
Also traded on a stock exchange, Exchange Traded Funds (ETFs) track an index, a commodity, bonds, or basket of assets like an index fund. Investors can consider investing their SRS funds into Blue Chips and Singapore-based ETFs through OCBC’s Blue Chip Investment Plan (BCIP).
Is SRS a good scheme?
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.
What are SRS funds?
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.
What is the difference between SRS and CPF?
Unlike CPF, SRS is entirely voluntary. Additionally, an SRS account holder can choose to invest the SRS funds from a wide list of approved options, while the majority of CPF investments are managed by the CPF Board.
Can I withdraw money from SRS account?
You can make withdrawals from your SRS account over 10 years from the date of your first penalty-free withdrawal. Withdrawals are penalty-free only if they take place on or after the statutory retirement age (currently at 62) that was prevailing at the time of your first SRS contribution.
Can I transfer OA to SRS?
First, you can transfer your CPF OA to the SA. But as I am still saving for my first property, I prefer not to do so. Some cash will then go into the SRS for more tax savings. Some SRS monies will be invested.
How much should I put in SRS?
The annual SRS contribution cap is currently set at $15,300 for Singapore citizens and permanent residents, and $35,700 for foreigners.
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.
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.
How much can I transfer to SRS account?
Each year, Singaporean and PRs can contribute a maximum of S$15,300 (S$35,700 for foreigners) to their SRS accounts. To be eligible for SRS tax relief next year, your contribution has to be made by 31 December this year.
How can SRS reduce taxes?
You can reduce your final tax payable by getting a dollar-for-dollar tax relief on your SRS contributions which reduces your chargeable income. If you start withdrawing your SRS funds at the age of 62 you can get a substantial tax relief by only having to pay taxes on 50% of your withdrawals for the next 10 years.
What happens to money in SRS?
You can withdraw funds from your SRS account any time. 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.