What is the interest rate that SRS earns?
I have many clients who thought that Supplementary Retirement Scheme (SRS) is currently earning the same interest as CPF-OA at 2.5% p.a. or CPF-SA at 4% p.a. They were confused about the two schemes. In actual fact, SRS is earning 0.05% p.a. saving account interest from the banks.
The SRS is part of the Government’s multi-pronged strategy to address the financial needs of an aging population. It is a national scheme that complements the CPF LIFE at age 65 and above. Like the CPF, its aim is to help Singaporeans save for their retirement. However, unlike CPF, SRS is completely voluntary, and its main draw is letting you enjoy tax benefits on your contributions.
To participate, all you have to do is open an account with one of the local banks and make a contribution. But before you rush off to open an SRS account, first find out if this is suitable for you.
This post represents my personal views and opinions and is neither associated with any organisation nor reflects the position of any organisation. Please seek advice from a Financial Adviser Representative before making any investment decisions.