Lifetime Membership Following my previous article, “My first CPF top up”, a member of SG Wealth Builder wrote in to enquire on how retirees could withdraw their Supplementary Retirement Scheme (SRS) monies without incurring income tax. In this article, I will share some of my insights on SRS withdrawal.
In accordance with the Retirement and Re-employment Act, the statutory retirement age in Singapore is raised to 63 in 2022. In the context of SRS, this change is significant as it could affect the penalty and tax liability upon SRS withdrawal.
Unlike CPF withdrawal, you can make SRS withdrawal anytime. However, if the SRS withdrawal is made before the statutory retirement age prevailing at the time of the first contribution, 100% of the sum withdrawn will be subject to tax. A 5% penalty for premature withdrawal will also be imposed.
According to IRAS, “Withdrawals are penalty-free only if they take place on or after the statutory retirement age (63 effective from 1 Jul 2022) that was prevailing at the time of your first SRS contribution (i.e. prescribed retirement age). If you have already opened an SRS account and made your first contribution, any subsequent change in the statutory retirement age (e.g.Read more