CPF or SRS for self employed?

Hi, what's your view on prioritising CPF or SRS for self employed?

Since Medisave is already a must to topup, what I'm looking at is the potential investment returns from SRS and the flexibility as compared to the stable and consistent returns from OA/SA which will be locked all the way without any flexibility and the returns of 2.5% and 4% (4.01%).

Just curious if there's anyone who just pumps and invest on your own platform outside without utilising CPF at all to plan for housing and retirement?

27F, no house and no liabilities as of now.

Taxable Income about 100k to 120k.

2

Discussion (2)

What are your thoughts?

Learn how to style your text

Kent Toh

28 Dec 2023

Consultant at Sprinklr

You are earning pretty well at your age.

Topup CPF preferred over SRS - as I rather earn a safe 4% in SA.

After reaching FRS - then will look at SRS.

It is possible to not utilise CPF for housing - but you will need maintain enough cash.

But definitely my purpose of CPF is for retirement, as its the best annuity plan.

For investment, just be consistent in buying S&P500 is good enough.

Reply

Save

Adam Tay

26 Dec 2023

Depend on you. Cpf dunno when can take out but srs can take out at age 55 depend on when you open the account. But cpf money not taxable but srs is tax 50% when you take out. So basocially depend on you

Reply

Save

Write your thoughts