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Why you should top up $1 to your Supplementary Retirement Scheme (SRS) account today November 16, 2020published at 12:21 AMByKenneth LouSeedly You’ve probably read or heard this piece of advice many times in the SeedlyCommunity or among your savvier circle of friends. “Top up $1 to your Supplementary Retirement Scheme (SRS) account to lock-in your retirement age!” Wondering why you should do that? I promise that when you get to the end of this article, you will understand what this is all about (hint: it’s to do with retirement planning and taxes). And I’ll even show you a step-by-step guide on how to make a top-up to your SRS account . Here’s why you should contribute $1 to start your SRS account today Whether you’re a fresh grad who just entered the workforce. Or a seasoned professional who’s been working for a while. You’ll eventually start earning more and might want to look for ways to reduce your taxable income . One of the ways which you can do so is via the Supplementary Retirement Scheme (SRS) which allows you to save for retirement. While reducing your taxable income by $15,300 every year. Best of all, if you choose to invest your SRS monies, the investment returns are accumulated tax-free. The SRS tax relief is also more than what you get if you performed CPF Special Account (CPF SA) top-ups. If you’ve already maxed out your CPF SA top-ups, you might want to consider SRS top-ups too. So… why should I open an SRS account today? Since government policies are updated so often… Who knows when the government will eventually decide to raise the statutory retirement age from 62 years old to higher? One workaround is to open an SRS account and deposit $1 to “lock-in” your retirement age first. Note: don’t put more than that if you’re not really sure how you will use your SRS account to help you in retirement planning yet Why? Well… it’s all thanks to this particular paragraph which I found in a 29-page PDF put up by the Ministry of Finance: PHOTO: Ministry of Finance Interested? Very long article See more https://www.asiaone.com/money/why-you-should-top-1-your-supplementary-retirement-scheme-srs-account-today