do u do SRS?

[dev_stg_prd]

assuming one earning taxable
150k =
first 120k - $7950
30k = 15% = $6000?

if apply srs max 15300 = $14700 @ 15% = $2205?

so total saving = $3795???

----------------------------------
if $130k then it will reduce higher %?
130k- 15300 = $114700?

so the bracket will be seeing 11.5% instead of 15%, resulting in higher % savings?

eg
130k = $7950 + 10k@ 15% = $9450

if contribute srs = $114700

80k - $3350
34700 @ 11.5% = $3990.5
Total = $7340.50

Savings = $2109.50?

so shld be higher tier the savings is ore since the % is higher ... ie 11.5% -> 15% -> 18%

but i dont understand why ppl say shld contribute either first few day or last few days of the yr...
why ah

ps dont know if my calculation correct or not

First $80,000 Next $40,000	- 11.5	3,350 4,600
First $120,000 Next $40,000	- 15	7,950 6,000
First $160,000 Next $40,000	- 18	13,950 7,200

maybe they want to lumpsome $15,300 all in to invest? for me I just DCA/12 monthly.

 

[dry_county]

how much is it worth now? got 400k?

Not so much lah….in early years I put in wrong investments so the returns are quite low.

 

[dev_stg_prd]

btw, what's the age that can withdraw SRS ah?

 

[Elfblade]

simi is BHS

Basic Healthcare Sum for CPF MA. 2025 cap is $75,500.

 

[dev_stg_prd]

@addict951 bro, dec CPF thread up already?

 

[70niner]

btw, what's the age that can withdraw SRS ah?

U can withdraw SRS monies any time u like

The correct question is "what age can withdraw SRS without penalty"

It depends on the prevailing statutory retirement age at the point when you created the account.

Was 62, now 63, will be 64 if u create SRS account after 1 Jul 2026

 

[Misuta]

but SRS cannot put into SA
SA is the acc if overflow, will flow out to Ordinary right?

Only MA will overflow to OA if FRS is reached. Monthly contributions will continue to go into SA even after FRS is reached.

 

[mgx-alander]

Y @Weaboo abandon thread

 

[shodan99]

got spare cash and above certain income tax bracket more worth it to do

i DCA for awhile and throw into endowus, but temporary stop cuz i need the cash in the short term

I think can download the excel spreadsheet from iras and input all your reliefs. then you will have clarity on how much you can actually save on taxes and plan accordingly. only thing is the excel spreadsheet will be based on AY24 as AY25 not yet ready.

 

[Misuta]

SA pros: can withdraw after age 55 if confident to reach FRS before 55, withdrawals not taxable

SA cons: limited access to invest so probably just get 4% interest, policy risk cus FRS increases every year (resulting in lower withdrawals after 55)

SRS pros: can invest in more asset classes and give higher long term returns (eg; 8% pa if world ETF), flexible withdrawals before age 63 (subjected to tax and 5% penalty)

SRS cons: withdrawal without 5% penalty is later than CPF, withdrawals still subjected to 50% tax after age 63 (have to consider if you want to continue working after age 63)

So it depends. But if I'm young, I would prefer SRS cus of the higher potential long term returns which makes a huge difference when compounded over a long period of time.

 

[shodan99]

For high earners, SRS is worth it. Assuming you earn within the $500k to $1M range, every extra dollar you is taxed at 23%. Whereas if you put it into SRS and withdraw it later, even if you withdraw before 62 years old (assuming you set up an SRS account when retirement age was still at 62 years old), you only need to pay 5% penalty. So if your goal is to FIRE, maybe work income becomes zero and just need to pay the penalty (which is still much cheaper than the 24% in taxes). Of course if you earn lesser and pay lesser income tax, the benefits of SRS might not be worth it

tax relief up to 80k only leh. so if your annual income at the 500k to 1M range, to be honest, it doesnt really move the needle. still have to be taxed at the 23% rate

 

[eatingtunic]

SRS not for those getting $600 on dec...

 

[shodan99]

Sequent of event
1 Jan - Park $15300 in SRS
10 Jan buyed n21u - 12,600 @ 1.21
Mar div - $252
Jun div - $245.7
Sep div - $253.26
Dec div - S$253.26

Total div earned- S$1004.22
Total tax saving - S$2295
Total saving - S$3299.22
Return - 21.56%

repeat the above in 2026

dividend will flow to which account?

 

[tan kuku]

Moi fwend hamtum all his marnee into SA

earn 4% interest

 

[Acetron]

dividend will flow to which account?

div will flow to srs account.... then accumulate until next year, add in another 15300 and invest in stock....

 

[testerjp]

The funniest thing about srs is they allow foreigners to contribute to avoid tax.

Sinkies only allow to contribute 15k. Foreigners 30k.

 

[70niner]

The funniest thing about srs is they allow foreigners to contribute to avoid tax.

Sinkies only allow to contribute 15k. Foreigners 30k.

Because foreigners don't have CPF contributions

If u add the max annual contribution of citizens/PR of $20,400 (which is tax-exempt) to the max annual SRS contribution $15,300 = $35,700, this is the max sum foreigners are allowed to contribute to SRS

 

[lowsesforever]

tax relief up to 80k only leh. so if your annual income at the 500k to 1M range, to be honest, it doesnt really move the needle. still have to be taxed at the 23% rate

It’s an extreme case illustration to illustrate the savings. Real world application would depend on the individual but this would also be the same with lower income folks, some save while others spend even though they don’t earn much. Actually, when you’re earning that amount, you feel the pinch even more. It’s no fun paying $5-7k a month in taxes and if it’s a salaried worker who worked his/her way up, it’s different from a towkay with a business

 

[Kohliemliem]

Yes some tax relief better than nothing

 

[eatingtunic]

I would rather put money in a bank where as can withdraw anytime, no tax.
The interest is not attractive for SRS.