Supplementary Retirement Scheme (SRS): Who Qualifies and What You Get
Learn how the Supplementary Retirement Scheme (SRS) helps you save for retirement while reducing your taxable income in Singapore.
The Supplementary Retirement Scheme (SRS) is a voluntary scheme designed to help individuals build up additional savings for their retirement years.
Who it's for
This scheme is available to Singaporeans, Permanent Residents, and foreign residents who earn an income.
What you get
By contributing to this scheme, you can receive tax relief. This means the money you put into your account is deducted from your taxable income, which may help lower the amount of tax you owe.
What it costs you
While there is no cost to join, there are limits on how much you can contribute each year. If you decide to withdraw your money before you reach the required age, you will face a penalty of 5% on the amount withdrawn.
The catch to know
To fully benefit from the tax concessions offered by the scheme, you must wait until after the statutory retirement age to begin withdrawing your funds.
How to apply
- Check your eligibility based on your residency and income status.
- Determine how much you can contribute within the annual limit.
- Open an SRS account through an approved financial institution.
- Make your contributions to start building your savings.
- Visit the official portal for more details: https://www.iras.gov.sg