SRS is a voluntary scheme to help individuals save for retirement in additional to the Central Provident Fund (CPF) saving.

The SRS offers tax benefits and you can find a quick summary of SRS here. This information is crucial to you especially if you are above 40. I will be conducting a SRS webinar in the next few weeks. Join my Telegram Group where I share 1 financial tip a day where I will be posting more details.

Why is this a last chance?

SRS allows you to make penalty free withdrawals from your SRS on or after the statutory retirement age (currently at 62) that was prevailing at the time of your first SRS contribution. 

In the National Day Rally in 2019, it is already made know that the statutory retirement age will increase to 63 (in 2022) and 65 (by 2030).

This means that if you don’t make your first SRS contribution before 2022, your penalty free withdrawal year will increase by 1 year to age 63. This is your last chance in doing so.

How much do I need to contribute?

All it takes is $1. You didn’t hear me wrong. You don’t need to invest in anything yet. The account opening only require $1 (and around 1 minute). The purpose of it is to “lock in” your statutory retirement age to be 62. You can find out more in one of my most read article last year called the $1 SRS strategy.

You can then consider to invest it or think about investing using your SRS in future.

Final Thoughts

Personally, I think it is a no-brainer to open the account. The “opportunity cost” is just $1. That being said, the choice is still yours at the end of the day.

For those of you who have opened your accounts. What are you investing in currently?

Let me know in the comments below.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

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The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.