Top 4 Most Flexible Retirement Plans in Singapore Do you want the most flexible retirement plan? If you can't decide on the best plan for you, don't…
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!
Here are the pros and cons of supplementary retirement scheme in Singapore:
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!
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:
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.
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.
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.
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.
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.
Sounds too good to be true? Wait till you hear more about it.
Why should you consider buying the best SRS-approved endowment plan?
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.
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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