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Supplementary Retirement Scheme (SRS) |
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Written by Wilfred Ling
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Tuesday, 23 September 2008 |
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The SRS is a voluntary scheme with the government aim to encourge people to save for their retirement. Unlike CPF which is compulosry, SRS is voluntary. Contributions to SRS attacts tax relief. Currently Singaporeans and PRs can contribute $11,475 each year while foreigners contribution is cap at $26,775. Foreigners' limit is much higher because they do not have CPF and hence does not enjoy tax relief which all Singapreans and PRs enjoys through their CPF contributions (employee's contribution to CPF has tax relief while employer's contribution to CPF is tax exempted). In the recent Budget 2008, there were some amendments to SRS. One such amendment is that the SRS is no longer restricted to employment. For example - a housewife can contribute to SRS if she is currently paying tax due to say other sources of income like rental income. Another change is that the employer is permitted to contribute to SRS. The following are more FAQs relating to the recent changes. Those who wish to know more about SRS in their context of their current financial situation may like to seek consultation service. I will be glad to offer this through a fee-based financial planning Read: FAQ - Budget 2008 Supplementary Retirement Scheme (SRS) Changes
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