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Wed, 11/25/2009 - 18:19
Cast Your Vote:
The SRS is a complementary retirement scheme that is little-known by Singaporeans. Created in 2001, the SRS was meant as a complementary scheme for people to save for retirement while saving on income taxes. Here's a brief summary of the scheme. An SRS account can be opened with DBS, OCBC or UOB, and the contributions can only be withdrawn after the age of 62. Early withdrawal is permissible with a penalty fee of 5%. It offers a 50% tax relief on contributions to the account, allows you to invest using that capital, and investment returns are tax exempted.
Even with these benefits, though, take-up rates are poor, according to a recent report in the news. After knowing this, will you be willing to open an SRS account? Why and why not?
Check out Qotion's take on the SRS in the latest issue of our newsletter!
http://www.qotion.com/enewsletters/26nov09.html
I thought I read somewhere that we can transfer our cpf money to our parents' account (those with little or no cpf at all) ). It is more straight forward. This may be a better option than to open a SRS a/c which locks up your money till age 62, and also the early withdrawal penalty fee ruling sucks. Free tax means free tax, but why still tax us at the other end of the road? It's like 'not very willing to give free' kind of thing... must still take back something at the other end....
Despite the fact that the labor market in the United States is showing improvements, older worker's condition continues to deteriorate and they feel forced to retire. Part of retirement planning is knowing what to do with your IRA or however many you have, is what you're going to do with it once you retire. The right strategy depends on what kind of retirement accounts you have your nest egg in – be it a 401k, a Roth IRA, whatever – and all the applicable penalties. For instance, you could cash it all out once you retire if you're over 55 at the time of retirement, to avoid penalties – it could save you more than a payday loans worth – but you should consult with a financial expert who knows how to get the most cluck for your buck.
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