Completed SRS Top-up in 2021

One of the last financial tasks for 2021 is to complete the maximum contribution of $15,300 to the Supplementary Retirement Scheme (SRS) account.

The main benefit is to save taxes aka cash outlay to the taxman next year.

Another benefit is to build up a cannot-touch ultra-long term portfolio using SRS funds.

There are also other options of endowment or insurance plans, annuity plans, bonds, funds or robo-advisor investment portfolios that we could invest with SRS funds.

However, SRS savings may not be for everyone because of the long lock-down period. We can only withdraw up to $40k from SRS tax-free for 10 years from the first penalty-free withdrawal, upon reaching the statutory retirement age (62 in 2021 and 63 w.e.f 1 Jul 2022). There is a penalty incurred for withdrawing funds from SRS prior to retirement age, on top of being slapped with tax on the withdrawn amount.

I believe SRS is only beneficial for people who are having income at least in the 7% tax bracket.

I have already contributed $4.8k to SRS early this year, leaving remaining $10.5k.

See related post: 2nd Top-Up To SRS in 2021

There it goes. $10.5k to complete the quota for this year!

Have you topped up your SRS account this year?

Do you want consider open an SRS account now to lock down retirement age at 62?

Thank you for reading. Stay safe and be strong as always. 

With love & peace, 

Qiongster