How Supplementary Retirement Scheme works
With the carrot of tax deferment, substantial savings will result if SRS participants' tax rates in the future are lower than their current tax rates
Add BT as a preferred source
SINGAPORE'S Supplementary Retirement Scheme (SRS) is what is known as a tax-deferred savings plan. These plans are common in countries like the US and Canada. Essentially, participants are enticed to put money in them by the carrot of tax deferment.
Substantial savings will result if their tax rates in the future are lower than their tax rates currently. This is plausible, because when people retire decades later, they are earning less, or are not earning anything at all.
The SRS is even more attractive than that, which we will explain later.
TRENDING NOW
Can ST Engineering aspire to challenge DBS to be king of the local bourse?
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
As the West explores new frontiers, South-east Asia is looking back down at Earth from space
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
