About the Supplementary Retirement Scheme (SRS):
- The SRS complements the Central Provident Fund (CPF). CPF savings are meant to provide for housing and medical needs and for basic living needs after retirement. Unlike the CPF scheme, participation in SRS is voluntary. SRS members can contribute a varying amount to SRS (subject to a cap) at their own discretion. It is worth noting that the contributions may be used to purchase various investment instruments.
- The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief, investment returns are accumulated tax-free and only 50% of the withdrawals from SRS are taxable at retirement (referred to as a “50% tax concession”).
- The annual SRS contribution cap currently stands at (i) $15,300 for Singaporeans and Permanent Residents; and (ii) $35,700 for foreigners.
- To enjoy tax relief in 2017, top up your SRS account before the end of 2016.