5 Best SRS Endowment Plan in Singapore

Best SRS endowment plan — One of the many things I love about Singapore is the SRS (Supplementary Retirement Scheme). This is a voluntary retirement plan that you need to sign up for. It helps you save some money towards your retirement and above all, it helps you save on income tax!

Pros and Cons of SRS

Here are the pros and cons of supplementary retirement scheme in Singapore:

Pros of SRS

• 100% of SRS contributions are eligible for tax relief
• Only 50% of withdrawals are taxable at retirement
• SRS can be used to invest in a variety of investments from low- to high-risk.
• Investment returns are tax-free

Cons of SRS

• Contributions may only be made using cash.
• Contributions made to an SRS account can’t be refunded.
• Early withdrawal amounts (before age 62) are fully taxable and subject to a 5% penalty fee.

Most people know that the SRS (Supplementary Retirement Scheme) is a good way to save money for retirement. However, they do not know how to maximize their SRS returns. A lot of people simply put in their money and leave it there until they retire – which is not a good idea. Why? Because if you just put in your money then leave it there, you will only get a measly 0.05% returns per annum. That’s like putting your hard-earned money in normal bank deposit! Don’t do that!

Save big on taxes with the Best SRS Endowment Plan

You can use your SRS funds to purchase an endowment plan from the participating insurers.

The best part? You’ll be entitled to a tax deduction of up to $15,300 on the premiums you pay. So if you are buying an endowment plan of $10,000 a year, you can claim this as a deduction against your annual income, and pay less tax. However, do note that you will not be able to withdraw any of the funds without paying 5% penalty until age 62 so this option is only for those who have a long time horizon.

A lot more can be said as we explore some of these myths and facts about Single Premium SRS Endowment Plan.

Myth: You have to earn a high monthly income to qualify for an SRS endowment plan.

Truism: Qualifying for an SRS endowment plan is just as easy as qualifying for any endowment plan. The minimum Single Premium is usually $10,000.

Myth: Those who earned $100,000 yearly or more in their career are the only ones who will benefit from SRS.

Truism: Even those who only earn $60,000 per year net of existing tax reliefs in place can benefit from SRS and may potentially enjoy a yearly tax savings of $1,000 or more. Find out your potential tax savings using this SRS Calculator from DBS.

No matter what stage of life you’re at right now, though, one thing’s for certain: You need a sound plan in place if you want your retirement years to be as stress-free as possible. That’s why it pays to consider the best single premium Supplementary Retirement Scheme (SRS) endowment plan.

In no particular order—Here are the different types available today:

#1: Singlife Flexi Life Income – Best SRS Endowment Plan

Singlife Flexi Life Income is a single premium SRS endowment retirement plan that gives you yearly payouts for as long as you live, just like a lifelong passive income.

Features of Singlife Flexi Life Income:

• Lifetime payout
• Increasing Payout (starting from 20 years after your first income payout or when you turn 60 whichever is later)

#2: Manulife RetireReady Plus – Best SRS Endowment Plan

Manulife RetireReady Plus is a SRS-approved endowment plan. It is provided by Manulife, which also provide other great choices of cash-funded retirement plans.

Features of Manulife RetireReady Plus:

• Choice of Income Payout Period of 5 /10 /15 /20 Years or till age 120
• Receive up to an additional 100% Guaranteed Monthly Income upon Loss of Independence (50% for 2 ADLs; 100% for 3 ADLs)
• Flexibility to Adjust income payout period up to 2 years before selected retirement age
• Waiver of Premium upon Total and Permanent Disability (TPD)
• Receive a lump sum equivalent to 50% of 1 year’s premium upon Retrenchment
• Option for Premium freeze for 1 year
• Policy continuity by appointing our loved one as the new life insured

#3: Income Insurance Gro Retire Flex Pro – Best SRS Endowment Plan

Secure your finances for your golden years with Gro Retire Flex Pro. Gro Retire Flex Pro is a SRS endowment retirement plan that provides a steady flow of monthly income from your selected retirement age.

Features of Gro Retire Flex Pro:

• Adjust your income payout period anytime before payout age
• Policy continuity with Secondary Life Insured
• The following Protection Benefits (For Regular Premium policy only):
• Additional 50% monthly cash benefit upon Disability (Loss of use of one limb; Loss of speech Loss of sight of one eye; Loss of hearing ); and
• Additional 105% net premiums paid upon Accidental Death; and
• Defer premiums for 6 months upon Retrenchment

#4: Income Insurance Gro Saver Flex Pro – Best SRS Endowment Plan

Income Insurance Gro Saver Flex Pro will give you peace of mind that you’re saving for your retirement in the most flexible way possible. Its flexible maturity terms allow you to terminate at any time, up to age 120—and with the option of delaying your retirement date, it’s easy to plan for a withdrawal date of the SRS endowment plan that works for your needs.

Features of Gro Saver Flex Pro:

• Choice of the policy term of 10/15/20/25/30 years or till age 120
• Policy continuity with Secondary Life Insured
• Premium waived upon Total and Permanent Disability (TPD)
• Defer premium for 6 months upon Retrenchment

#5: AIA Smart Wealth Builder – Best SRS Endowment Plan

Similar to #4, AIA Smart Wealth Builder is a flexible SRS endowment plan for retirement that aims to magnify your savings while giving you the flexibility to withdraw funds to support your goals as you reach different milestones in life.

The main benefit is the ability to withdraw money from the plan on an as-needed basis.

Features of AIA Smart Wealth Builder:

• Long maturity up to age 125
• Flexibility to access the cash value
• Policy continuity with Secondary Life Insured

Solve your retirement savings problems with the Best SRS Endowment plan

Sounds too good to be true? Wait till you hear more about it.

Why should you consider buying the best SRS-approved endowment plan?

1. You can get guaranteed lifelong income
2. You can get guaranteed income irrespective of the performance of the markets and financial assets
3. You can choose how much payout you want
4. You do not need to worry about your portfolio performance
5. Your monthly payout is potentially tax-free
6. Your payout can be for a fixed period such as five years, ten years, fifteen years or even for an indefinite period.
7. You can use the same amount of money as single premium payment and invest it once— No need to allocate money from your pocket every month
8. You stand to gain from the dividends and bonus gains if your policy participating funds are doing well—If they don’t, you still get your 100% initial capital back
9. You get higher returns on savings: The single premium is a lump-sum amount that is paid once, at the beginning of the term. As compared to a regular savings plan which is based on monthly or yearly payments, a single premium SRS endowment plan provides higher returns on your savings.

Takeaway: Use the best SRS endowment plan as a vehicle for retirement planning today!

We’re glad you’re checking out the best SRS endowment plan.

Singaporeans love to work hard. And sometimes we forget to plan for the future.

The good news? We’ve got a solution: We’ve got all kinds of plans for all kinds of preferences, so you can choose the one that’s best for your needs.

Is one of the 5 Best SRS endowment plan a right fit for your Investment portfolio?

Let our partnered financial planners compare, analyse and advise you further. To customise SRS endowment plan to your requirement, fill in the form below and a licensed financial planner will contact you and draft a proposal based on your given inputs.

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