SRS retirement plans

[blurpandasg2014]

Is it safer to put monies into SRS approved retirement/annuity plans to form a base retirement income than to put all into investment?

What are your approach to invest SRS funds?

To advisors: Any good annuity/retirement plans that gives out high guaranteed return? (Single premium 15k)

 

[reddevil0728]

Is it safer to put monies into SRS approved retirement/annuity plans to form a base retirement income than to put all into investment?

What are your approach to invest SRS funds?

To advisors: Any good annuity/retirement plans that gives out high guaranteed return? (Single premium 15k)

it's never ideal to put all eggs into one basket.

have you topped up CPF yet?

cause CPF Life is probably the best annuity plan you can find out there

 

[boredboiboi]

Is it safer to put monies into SRS approved retirement/annuity plans to form a base retirement income than to put all into investment?

What are your approach to invest SRS funds?

To advisors: Any good annuity/retirement plans that gives out high guaranteed return? (Single premium 15k)

15k depends on your age. Recently generated 1 minimum also about 20+k for a age 40+

 

[fr33d0m]

SRS approved has little to do with safety or return. However, SRS approved is definitely safer than most you know from a friend who hears from another friend, which is not listed anywhere.

do your homework or pay someone doing it for you.

 

[s0crates]

Is it safer to put monies into SRS approved retirement/annuity plans to form a base retirement income than to put all into investment?

What are your approach to invest SRS funds?

To advisors: Any good annuity/retirement plans that gives out high guaranteed return? (Single premium 15k)

Endowment and annuity plans are still fundamentally invested in stocks/bonds/REITs but are structured to give payouts after the accumulation phase.

These products have long lock in and higher fees.

You can easily structure your own equivalent products for a much better result, even though it is not guaranteed.

Btw fun fact, for an insurer to give you guaranteed returns, they need to adhere to some capital requirements which basically restricts their investment choices and % of risk assets they can hold. It is impossible to give high guaranteed returns because of that.

Just invest in low cost funds.

 

[BBCWatcher]

Is it safer to put monies into SRS approved retirement/annuity plans to form a base retirement income than to put all into investment?

It's probably safer in terms of mitigating longevity risks specifically, but that's contingent on the quality of the life insurer(s) and whether you're operating within SDIC coverage limits. (And this isn't unique to SRS dollars. You can buy life annuities using unrestricted cash, too.) But in terms of investment safety, no, since you could park SRS account dollars in Singapore Government Securities if you wish. SGSes are the #1 safest place to park Singapore dollars, safer than every private life insurer.

What are your approach to invest SRS funds?

SRS account dollars are inherently geared to long-term investing (since they're for retirement), so they should be allocated to long-term vehicles. I would ordinarily prefer to allocate SRS dollars to the bond portion of my total long-term investment portfolio for tax optimization reasons. I personally am a U.S. person, and so I really rather wish I hadn't opened a SRS account. But I did, so I do the best I can given the more limited set of choices available to me.

 

[lzydata]

May or may not be informative, but MOF publishes some basic statistics and trends including this:

Composition of SRS Investment Portfolio (Dec 2021)

Cash Balance - 24%
Unit Trusts - 11%
Insurance - 26%
Singapore Dollar Fixed Deposits - 0%
Shares, REITs, ETFs - 28%
Others - 10%

SRS statistics
https://www.mof.gov.sg/schemes/individuals/supplementary-retirement-scheme
It's not clear what "others" is and where SGS bonds/T-bills would fit. UOB also offers gold products.

 

[blurpandasg2014]

https://www.dbs.com.sg/personal/articles/nav/retirement/srs-withdrawals-stagger-and-save
"Note that if you have bought an annuity that gives you a payout for life, 50% of the payouts withdrawn will also be subject to tax, but the annuity stream is not limited to 10 years."

Does this phrase mean that for annuity, payout not exceeding 40k after 10yr withdrawal window will have no tax?

 

[BBCWatcher]

https://www.dbs.com.sg/personal/articles/nav/retirement/srs-withdrawals-stagger-and-save"Note that if you have bought an annuity that gives you a payout for life, 50% of the payouts withdrawn will also be subject to tax, but the annuity stream is not limited to 10 years."
Does this phrase mean that for annuity, payout not exceeding 40k after 10yr withdrawal window will have no tax?

If you have no other taxable income, if the life annuity is fully SRS qualified (Manulife is currently the only such provider last I checked), and if Singapore doesn't change its income tax rules (doesn't introduce a lower income tax bracket for example), yes, that's correct. Life annuity payouts of S$40,000 per year or less will not attract any income tax in Singapore in that scenario.

 

[celtosaxon]

SRS account dollars are inherently geared to long-term investing (since they're for retirement), so they should be allocated to long-term vehicles. I would ordinarily prefer to allocate SRS dollars to the bond portion of my total long-term investment portfolio for tax optimization reasons. I personally am a U.S. person, and so I really rather wish I hadn't opened a SRS account. But I did, so I do the best I can given the more limited set of choices available to me.

One important caveat — everyone should manage their investments as a whole, whether it’s SRS and non-SRS. To the extent you need bond exposure in your overall portfolio, first priority should be SRS dollars for that. Do not buy bonds in your SRS simply because it’s potentially better tax-wise… your asset allocation takes first priority, even if that means equity investments in your SRS.

 

[yesaka]

i don't need to file income tax as company auto inclusion income n all the info to iras. but just wondering - SRS must declare or is it included in too ?? - as SRS is self investing... under what column or heading of income tax notice of assessment is it under ?? sorry, newbie...i scared i losing on tax savings all this years...

 

[lzydata]

i don't need to file income tax as company auto inclusion income n all the info to iras. but just wondering - SRS must declare or is it included in too ?? - as SRS is self investing... under what column or heading of income tax notice of assessment is it under ?? sorry, newbie...i scared i losing on tax savings all this years...

The only concern you should have with SRS and your income tax is whether the amount contributed in the last year is reflected correctly in your tax return, which it should be, since the SRS operators will automatically submit it to IRAS. The maximum contribution per year is $15,300 and I don't think the banks will even allow you to contribute more. No need to report on the details of what you invested in.

 

[sohguanh]

i don't need to file income tax as company auto inclusion income n all the info to iras. but just wondering - SRS must declare or is it included in too ?? - as SRS is self investing... under what column or heading of income tax notice of assessment is it under ?? sorry, newbie...i scared i losing on tax savings all this years...

I hope you also know the srs when to take out and to avoid pay tax must take slowly out each year you need to have long life

 

[wenguang]

i don't need to file income tax as company auto inclusion income n all the info to iras. but just wondering - SRS must declare or is it included in too ?? - as SRS is self investing... under what column or heading of income tax notice of assessment is it under ?? sorry, newbie...i scared i losing on tax savings all this years...

you can still log in to iras and double check if you are not sure

 

[yesaka]

you can still log in to iras and double check if you are not sure

thanks...check ..have my srs bank ocbc posted my contribution amt

 

[sylves]

Where do you all put your SRS funds now ? Just got refunded from SGS. So thinking where to park the cash now.

 

[gold_eagle36]

Where do you all put your SRS funds now ? Just got refunded from SGS. So thinking where to park the cash now.

Srs for long term. Just invest it fully in equities, and a little bonds. Near retirement then derisk

 

[andyhtc]

Where do you all put your SRS funds now ? Just got refunded from SGS. So thinking where to park the cash now.

Idling.

Waiting for opportunities in the stock market.

 

[reddevil0728]

Where do you all put your SRS funds now ? Just got refunded from SGS. So thinking where to park the cash now.

can do t-bill right

 

[celtosaxon]

Idling.

Waiting for opportunities in the stock market.

Last Oct was an opportunity. Did you catch that one? Why not just put your SRS dollars to work as soon as they hit your account?

I have been doing that since 2020 when my employer started funding my SRS, as soon as there is enough money to buy 10-20 shares of S27, I submit an order. I now have 190 shares at an average price of $392.56.

20 shares / $325.50 (7/21/20)
20 shares / $338.84 (9/17/20)
10 shares / $373.55 (2/1/21)
20 shares / $419.66 (4/30/21)
10 shares / $438.30 (7/26/21)
10 shares / $468.79 (11/8/21)
10 shares / $468.95 (1/7/22)
10 shares / $440.00 (2/15/22)
20 shares / $396.00 (7/25/22)
20 shares / $358.31 (10/3/22)
20 shares / $381.99 (1/6/23)
20 shares / $414.20 (4/19/23)
+ Add Another Lot