SRS, when should I set it up, n what can I do with it?

Hi, I've been reading up on SRS acc, but am still unsure about it's usage. Can someone enlight me on whether I set up a SRS ACC during my NS, top-up $1, to lock my retirement age?

By locking my retirement age, what does this mean? E.g do I receive mthly payout? Can I still work after reaching the retirement age n still receive mthly payout?

What can I do with a SRS ACC?

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1M45

28 Jan 2022

SRS is just another mean for avoiding tax for high income earner, when all the tax relief are exhuasted.

If you are not in the 7% tax tier, a combination of reliefs are probably enough for you to not pay a single cent to the govt.

SRS just follow normal bank interest rate, if u put it in you cant withdraw it without giving the govt 5% commision before your withdrawal age (60s, increasing every years, work till you die)

Conclusion just put $1 in first.

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Tan Choong Hwee

28 Jan 2022

Investor/Trader at Home

SRS is an account for you to enjoy tax relief when you contribute and penalty-free half-taxable withdrawal after the account withdrawal age. The $1 contribution is to lock the SRS withdrawal age to the official retirement age (62 at the moment, Jan 2022).

SRS is not an annuity, so there is no monthly payout per se. You can and should invest your SRS money to grow it for retirement needs, whenever you decide to retire and withdraw.

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Jenny Lee

28 Jan 2022

Hi,

To lock your retirement age now means if you do put aside some money and place it in your SRS a...

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