Srs how does it work

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Skip To Main Content. Motoring Dining Advisor Travel Insider. Card Activation Overseas Card Use. Benefits Calculator Apply Now. Tax savings Show more Show less. Tax-free investment gains Show more Show less. Flexibility to withdraw Show more Show less.

Show less. How SRS works The above is for illustration purposes only. Calculate how much you could save on your taxes Your Annual Income Includes salary and bonuses earned for the year. Reset Calculate. The table is for illustration purposes only. More Information. Call us at Contact Me. Can I have more than one SRS account? What is the amount I can contribute to SRS? Is there a limit and if so, how is this limit determined?

Why should I contribute to SRS? Besides the benefit of having more savings to draw on when you retire, you will enjoy the following tax benefits on contributions to SRS: You can claim tax relief for contributions made to your SRS account. Investment gains will accumulate tax-free in SRS. Yes, you can speak to us on how you can maximise your SRS funds. What happens if I withdraw before 62 years old?

Gain access to a diversified, multi-asset portfolio consisting of both Asian equities and Asian fixed income instruments. You may also like to check out our other Unit Trust funds. Secure higher returns with fixed tenures of up to 36 months for Singapore dollars and 10 major foreign currencies. Contributions must be made by 30 December of each year in order to be eligible for tax deduction in the same year.

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Unit Trusts disclaimer. Structured Deposits disclaimer. Insured Deposits Register. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association LIA or SDIC websites www.

All figures provided are for illustration purposes only. Actual figures may differ or vary according to actual circumstances. This advertisement has not been reviewed by the Monetary Authority of Singapore. Information presented as at 5 November Indicate on the back of the cheque:. Cheques received before 3. A wide range of financial instruments are available for your investments. These include stocks, unit trusts, time deposits, annuities, fund management accounts and life insurance policies single premium and recurrent single premium products only.

However, direct property investments, life insurance policies greater than 3 times the single premium, critical illness, health and long-term care products are not allowed. This cap applies to the total amount of all tax reliefs claimed, including any relief on SRS contributions.

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You may want to seek advice from a financial adviser before committing to buy the product. If you choose not to seek advice from a financial adviser, you should consider whether the product is suitable for you.

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. This document is for general information only. It is not a contract of insurance or an offer to buy an insurance product or service. It is also not meant to provide any insurance or financial advice. Learn more about the tax benefits of SRS.

In exchange for the tax advantages, the Singapore government expects citizens and permanent residents to keep their money in their SRS account until at least age Foreigners can withdraw before the retirement age without early withdrawal penalties, as long as they have had the SRS account open for at least 10 years and they withdraw the entire SRS amount in one lump sum.

Withdrawal penalties are strict, yet straightforward, with SRS. Here's what you need to know:. So, if you open an SRS account, just make sure you invest it. If you were to invest your contributions, but your investments incurred a loss, you won't be able to top up the account to make up for the difference. Further, if your investments earn profits, those profits will be subject to tax at withdrawal, as they're treated as part of your SRS withdrawal amount.

As Singapore doesn't tax capital gains, dividends, and interest on financial investments, SRS is actually a worse tax treatment. However, due to the tax advantages at deposit, the math still works, and from a tax perspective it makes sense to use SRS.

Additionally, you can strategise your withdrawals to reduce your tax exposure, as you're allowed to withdraw over a maximum period of 10 years. So, you can withdraw your funds in those years where you expect to have an overall lower taxable income. Do your homework and look at fees and management strategies. If in doubt, ask your preferred fund manager or financial advisor if they can invest your SRS. You'll need to apply your voucher before scheduling your SRS deposit.

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