The SRS offers attractive tax benefits as contributions to SRS are eligible for tax relief in the following year of assessment for tax. However, do note that with effect from 1 Jan 2017, there is a cap on personal income tax relief of $80,000 per year of assessment, so if your personal relief has exceeded $80,000 for the year, further contribution to SRS would not attract any tax benefit.

Investment returns are accumulated tax-free. SRS, however, are taxable but only at withdrawals. Only 50% of the withdrawals after the statutory retirement age* from SRS are taxable (referred to as a “50% tax concession”).

*The statutory retirement age is the prevailing age when you made your first SRS contribution. Currently, it is 63.