For a young adult in mid 20s, is it better to use spare cash of $7K to TOP up CPF SA account or do SRS contribution? - Seedly
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Supplementary Retirement Scheme (SRS) CPF SA CPF Income Tax

Anonymous

Asked 3w ago

For a young adult in mid 20s, is it better to use spare cash of $7K to TOP up CPF SA account or do SRS contribution?

After setting aside emergency funds, I pay <$500 for income tax. Please share rationale. Thank you very much!

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    YJ

    YJ

    Top Contributor

    Top Contributor (Dec)

    Level 9. God of Wisdom

    Updated 3w ago

    If you do not do investment yourself and you know you never will, CPF SA.

    SRS you must use the $$$ in account to invest else same as bank interest rate.

    SRS you need to know (in case you dont know)

    -you can only withdraw at 62 else 5% penalty charge

    • 50% of withdrawal will be taxed (meaning can only withdraw $40k per year)

    • you must withdraw everything within 10years

    You got other relief? NS, living with parent....?

    2

    Question Poster

    3w ago

    Thank u for this perspective, i guess i will go for CPF SA for now and continue learning about investments!
    Question Poster

    3w ago

    Living with parents, but they still working
    Thank You!
    Can you clarify
    I wonder if
    This is so helpful 👍
    What about
    Post

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