Benefits of SRS
Benefits of SRS
SRS stands for Supplementary Retirement Scheme and it is a voluntary programÂ offered to employees in Singapore so they can save more than their usualÂ contributions under the Central Provident Fund. Savings under the CPF is usually
enough to cover basic expenses upon an individual’s retirement. These expensesÂ usually include housing, grocery, and medical bills. But through the SRS programs,Â employees can opt to save more and beyond their standard CPF and get variousÂ benefits including the following:
1. More savings
The basic point of saving for retirement is to have enough money to go about one’sÂ daily activities when an employee retires from work. For some people, whateverÂ they contribute to the CPF as mandated by law may be enough. But for thoseÂ who wish to have basically more money by the time they retire then voluntarilyÂ participating in the SRS program will help them get what they want.
2. Tax relief
Additional contributions made to oneâ€™s retirement fund are non-taxable. WhateverÂ additional amount is saved for future retirement won’t be subject to tax at the timeÂ of contribution and this is great news for the long term. Less of the retirementÂ income will be taxed if the employee contributes more to his own fund under theÂ SRS.
3. Bigger retirement fund
With additional contributions, an employeeâ€™s retirement fund will also literally getÂ bigger. And by the time retirement comes, those contributed under SRS will alsoÂ be taxed less which will further make the retirement fund even bigger. One canÂ even choose to have more tax savings if the withdrawal of the retirement fund isÂ staggered for a 10-year period rather than withdrawing the money all at once.
People who may seem to have a little extra from their salaries are the bestÂ candidates to participate in the Supplementary Retirement Scheme. After all,Â everybody wants to have a decent living once retired and one way of ensuring it is toÂ have more savings through the SRS.Benefits of SRS