Let’s talk about Tax Savings and how contributing to a Supplementary Retirement Scheme (SRS) account can help reduce your tax burden.
SRS is a voluntary contribution scheme which offers attractive tax benefits and helps to accumulate funds for your retirement. Each dollar of SRS contribution will reduce your income chargeable to tax by a dollar and may even lower your income tax bracket!
The maximum allowable contributions are $15,300 (Singaporeans /PR) and $35,700 (foreigners). Tax savings you would enjoy is dependent on your tax bracket.
For example, if you are a Singaporean earning a chargeable income between $80,000 -$120,000 (Tax Bracket 11.5%), your tax savings will be $1,760.50 ($15,300*11.5%).
Below is a table to show how much you may be able to save against the maximum yearly contribution amount.
While reducing your taxes, your SRS contribution can also be put to more efficient use through investing in a wide range of retirement solutions including Institutional Funds.
– Institutional funds are low-expense investments intended for large institutions and Accredited Investors (income > $300k/yr OR Net Assets > $2mil)
– Such funds are not readily available on Retail Platforms / Banks
– One of our Recommended Funds has been performing more than 10%pa over the last 10years
If you make annual contributions of $15,300 to your SRS account for 20 years, your SRS can potentially grow up to $505,000 if you invest and reap a modest return of 5%p.a. Now, this is what we call saving and growing your nest egg effortlessly!
If you would like to know what are the options available for your SRS funds, you may email me firstname.lastname@example.org or chat with me
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
I have been a financial advisor since 2007, starting off as a tied agent before joining Financial Alliance. I did so to gain access to a truly independent platform where I can offer unbiased advice. From managing business risks to overseeing a client’s retirement portfolio, I have undertaken the effortful task of becoming adept at personal finance and risk management for both businesses and individuals.
The best thing about what I do is people. As an extrovert, I value the conversations and connections I have made with my clients. This also gives me a sense of achievement when I help my clients to construct a financial portfolio to protect and grow their Wealth.
In my free time, I like to create visual content to entertain my loved ones.
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