Thoughts on the Supplementary Retirement Scheme for tax relief? Just curious how many out there actively claim the tax relief?
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Elijah Lee
22 Nov 2019
Senior Financial Services Manager at Phillip Securities (Jurong East)
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You don't need to actively claim SRS relief as the SRS operator (bank) will do the necessary for you.
The question is whether you should contribute to your SRS in the first place. This depends on a variety of factors such as
Generally, it may be more worth the tax relief only from the perspectives of high income earners. But on the other hand, high income earners may be less tempted by the limited investment options that the SRS provides. It is a different beast from CPFIS since that is already money that I cannot touch, and just have to make the best of whatever investment options are available.
The other possibility is if you know you tend to spend money on hand and would like to somehow lock it away until retirement. But again, I think there are better plans for that...
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Pang Zhe Liang
22 Nov 2019
Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)
The Supplementary Retirement Scheme (SRS) is a good way for tax relief if and only if you are certai...
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Hi LH,
SRS as a scheme was conceived to encourage Singaporeans to save more for retirement. To attract people to contribute, tax relief on SRS contributions was introduced.
My thoughts and the key things you need to take note are:
A complete analysis of SRS and how it fits into your financial situation will be possible if you are able to provide more information, or if you sit down with an advisor to discuss. But those key points should provide you with some information to start. Due to practical limitations and to prevent this answer from turning into a novel, I can't elaborate on all the points above in writing.
To answer your second question on how many people actively claim the tax relief, I was able to find the number of SRS account holders at end Dec 2018 to be 156820, so I can hypothesize that the number will be around there. ( https://www.mof.gov.sg/docs/default-source/mof-... )
Incidentally I am conducting an SRS seminar in Dec, and you might want to drop by to hear more. I'll put the link in my profile soon.