Do you contribute to your SRS funds? At which income tax bracket and what do you invest them in?

Hi Anon,

I have actually wrote an article on this, and it looks at optimising SRS across 3 key factors:

1. Income tax,

2. Age of first contribution (contributing the full $15,300, and the same amount later on)

3. Assumed investment returns.

I came up with a spreadsheet and used the above 3 factors as variable factors. Assuming a "conservative" 7% return (which is what we should get), for most age, it makes sense to contribute to SRS even at 7% income tax bracket. Of course you would benefit more at 11.5% or even 15%. On a more personal level, I think making sure you dont have this money for other commitments in the short to mid term is more important. ​​​

I only do it when my income hit 11.5%. I think this is the bracket recommended by many ppl so I just follow it.