facebookWow found out that SRS is actually something that people do yearly? Have you SRS-ed this year? Could you also explain what SRS is about? - Seedly
Seedly logo
Seedly logo
 

Anonymous

Asked on 08 Dec 2020

Wow found out that SRS is actually something that people do yearly? Have you SRS-ed this year? Could you also explain what SRS is about?

Not sure what SRS is about but found out that people do regular yearly top-ups and wondering if I should also do it.

0 comments

2 answers

Answer Now

Answers (2)

Kenneth Quek

Kenneth Quek

Level 5. Genius

Answered on 13 Dec 2020

SRS is basically an initiative to encourage people to save and invest for their retirement. They do this by giving tax relief for the amount that you put into SRS.

If you are looking for tax relief, it probably makes sense to max out all the other tax relief offerings before SRS. Commonly, CPF RSTU gives you up to 7k tax relief if you top up your own CPF SA with cash. (Up to FRS.) And up to an additional 7k tax relief if you top up for your spouse/siblings/parents (subject to income restrictions).

In addition, tax relief probably makes more sense when you are in a higher tax bracket. So if one is not in the higher tax brackets, there may not be a need to sacrifice liquidity just to get some tax relief.

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Question Poster

08 Dec 2020

Just to get a better understanding, do you top up your SRS? If you don't mind sharing

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post