Supplementary Retirement Scheme (SRS) is part of Singapore government’s effort to address the retirement needs of Singaporeans and is meant to complement Central Provident Fund (CPF).
Over the years, SRS had grown in popularity in Singapore as contributions surged from $0.16billion in 2001 to an explosive $8billion in 2017. During this period, the number of account holders also increased 10 fold, surging from 11,890 to 140,695. Given that so many people had jumped into the bandwagon, it is worthwhile to examine the merits of the supplementary retirement scheme.
While both SRS and CPF are retirement schemes, they work differently and address different financial needs. CPF focuses on housing, healthcare and retirement needs while SRS is a scheme that provides tax relief, investment and saving opportunities.
Generally speaking, SRS is a scheme that Singaporeans and foreigners should consider in the early years of their careers because it comes with many benefits and flexibility. In this article, I will share my strategies and insights on how to leverage SRS to boost your retirement income. I would also highlight the best possible way to exit the fund.
SRS for retrenchment hedge
Firstly, contributions to CPF is mandatory while SRS is purely voluntary. …