Comments on: What’s not good about Supplementary Retirement Scheme (SRS)

By: On the path « Invest

On the path « Invest — Wed, 21 Dec 2011 03:50:31 +0000

[...] Alternative sources: http://mrwangsaysso.blogspot.com/2009/12/supplementary-retirement-scheme.html; http://www.salary.sg/2009/whats-not-good-about-supplementary-retirement-scheme-srs/; http://singaporeprofit.com/2007/07/14/supplementary-retirement-scheme-srs-a-beginner%E2%80%99s-guide-part-i/ Like this:LikeBe the first to like this post. [...]

By: curious

curious — Tue, 06 Sep 2011 11:13:59 +0000

Does anyone know if the government is considering any changes and updates to SRS?

I think the principle and intention of SRS is great, but more should be done to really make it simpler and straightforward. Some points of my wishlist include:

1) scrapping the tax on 50% of withdrawals and make it completely tax free for 100% of withdrawals at retirement age.
2) widening the umbrella of investment/insurance products allowed
3) make it the same for Singaporeans/PRs/Foreigners (complete equality and fairness)

I’d like to see the MOF review the SRS scheme and rejuvenate some life into it. There needs to be more discussion on how we can encourage better retirement planning in singapore.

Also – can someone clarify, do Spore PR’s benefit exactly the same as Singaporeans? I remember reading something about 20% tax for Singapore PRs (or is that only for non resident tax payers? regardless of PR and Sporean?)

By: Supplementary Retirement Account : Does it always work out better for you ? - Salary.sg Forums

Thu, 10 Feb 2011 02:36:12 +0000

[...] you read the following blog posts and their comments? What’s not good about Supplementary Retirement Scheme (SRS) | Salary.sg – Your Salary in Singa… Mr Wang Says So: The Supplementary Retirement Scheme What I think is that in general, if you are [...]

By: baffled

baffled — Mon, 27 Dec 2010 09:33:16 +0000

thanks for the reply serendib.

yes, read that iras webpage before.

to clarify, does topping up family members cpf qualify for tax rebate? but what if they have emptied out their cpf?

By: serendib

serendib — Mon, 27 Dec 2010 05:53:44 +0000

The IRAS website lists all the possible legal ways of reducing PIT:
http://www.iras.gov.sg/irasHome/page.aspx?id=110

Singles have limited options to reduce their PIT, but you could consider topping up your/your parents’ CPF accts?
Dont quite understand your comment on the taxation of your bonus – at your tax bracket (80k-160k), the marginal tax is only 14%

By: baffled

baffled — Mon, 27 Dec 2010 05:10:57 +0000

May I ask how we can reduce personal tax if the SRS is not a good approach? I’m single and earn between 96K and 111K depending on bonus for the year. No children but have parent relief. I’m part of the sandwich class, can’t qualify for HDB but can’t afford condominum either, and appreciate any advice on what I can do to reduce personal tax. It’s very painful when more than half the bonus you work so hard for goes into income tax. Looking forward to a reply.

By: jo

jo — Tue, 21 Dec 2010 09:26:38 +0000

Data Says:
November 16th, 2009 at 10:36 pm
“Capital gains: actually, the MOF’s FAQ (the SRS Booklet) here has a question that addresses that, number 75. It works out to be the same.”

The simplified example shows that after 10yrs, the sum is 12,905, both for nonSRS and SRS.

From tax perspective,
at Year0, nonSRS investor pays tax $1000 (@10%)
at Year10, SRS investor pays tax $1,344.
=> For SRS investor, you are actually withholding the tax and investing (working) for IRAS, which IRAS will take back many years in future.

Of course, the better investor will be more beneficial to IRAS.

Still, taxing on only 50% of withdrawal may be a big incentive for investor to do SRS.

Either way, if you have spare cash, put it in SRS.
Use SRS to buy local shares
Use cash to invest in other instruments.

By: richie

richie — Mon, 20 Dec 2010 03:09:03 +0000

SRS is for the high earners lah. So simple to see.

By: Jacks

Jacks — Sun, 19 Dec 2010 15:02:41 +0000

You got quoted in today’s Sunday Times in an article by Goh Eng Yeow, who said “while not disputing the merits of the points (you and others) raised”, he can only use his own experience as an SRS account holder to point out some of the benefits.

By: serendib

serendib — Tue, 23 Feb 2010 01:49:08 +0000

RT RL:
“is there a $440k limit for SRS?”

Under the current tax brackets, you wont have to pay any income tax if you spread your SRS withdrawals over 10 years @ $40k per year, and have $40k at the end of the period(which will be taxed at that time)