That is a great point. For expats, SRS is really the only tax privileged retirement vehicle you can take advantage of in Singapore. It works somewhat similar to an IRA or 401(k) account.
I wouldn’t call the baby that ugly, but you are correct that SRS is not that good of a deal.
If there is a reasonable chance that you might retire in SG — that makes a big difference in the value equation for SRS, because you can spread the withdrawals over 10 years. Assuming tax rates don’t change, you can take out $40k per year tax free starting at the statutory retirement age (currently 62). No tax on the way in, and none on the way out. That is the perfect way to play it.smoulder wrote: ↑Mon, 11 Oct 2021 2:13 pmYes I am a PR. You are right, my requirements are different from someone who's on EP.
I am indeed planning to retire in Singapore.malcontent wrote: ↑Tue, 12 Oct 2021 12:11 pmIf there is a reasonable chance that you might retire in SG — that makes a big difference in the value equation for SRS, because you can spread the withdrawals over 10 years. Assuming tax rates don’t change, you can take out $40k per year tax free starting at the statutory retirement age (currently 62). No tax on the way in, and none on the way out. That is the perfect way to play it.
Although I plan to take it all out after 10 years, it also depends. If we end up retiring here, I would just leave it for another 4 years and then spread the withdrawals over 10 years. That is a decision I need to make in 2030.
That's quite odd for your org to choose SRS. I work in banking and most of the global banks I know and my current bank too uses Hong Kong based MPF private pension providers to make us expats on par with the local CPF. The lock in is only until we are with the company and when we quit we can withdraw the funds. I feel this is the best way to make expats on par with locals. SRS is way more restricted than even CPF. CPF you can withdraw in full without penalties when you give up PR, so to smoulder, I would suggest max out your voluntary CPF contribution it is much more beneficial than SRS for a PR.malcontent wrote: ↑Mon, 11 Oct 2021 2:57 pmI wouldn’t call the baby that ugly, but you are correct that SRS is not that good of a deal.
I don’t put my own money in, but last year my employer switched to a defined contribution plan via SRS (this just puts EP holders on an equal footing with locals for employer contributions). So I was forced into it.
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