5 Best SRS Endowment Plans in Singapore

Best SRS endowment plan — One of the many things I love about Singapore is the SRS (Supplementary Retirement Scheme). Just so you know, 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

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, for example, invest in a SRS endowment plan.

Hence a lot of people simply put in their money in the SRS bank account and leave it there until they retire – which is not a good idea. Why? Because if you just put in your money and then leave it there, you will only get a measly 0.05% return per annum! That’s like putting your hard-earned money in a normal bank deposit! So don’t do that!

Here are the pros and cons of the Supplementary Retirement Scheme (SRS) 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.
• Almost 0% returns if uninvested

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 can claim a tax deduction of up to $15,300 (or S$35,700 for foreigners) on the premiums you pay.

So if you are buying an SRS 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 a 5% penalty until age 62 so this option is only for those who have a long time horizon.

Debunking Myths About SRS Endowment Plans

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

Let’s uncover some truths about the Single Premium SRS Endowment Plan.

• Myth #1: You need a high income to qualify for an SRS endowment plan.
  Fact: Qualifying for an SRS endowment plan is as straightforward as qualifying for any endowment plan. The minimum Single Premium is typically $10,000 (one-time).
• Myth #2: Only those earning $100,000 or more yearly can benefit from SRS.
  Fact: Even individuals with a yearly income of $60,000 after applying existing tax reliefs can benefit from SRS and potentially save over $1,000 in taxes each year. You can calculate your potential tax savings using the 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:

• Get income for life.
• Your payouts grow over time.

#2: Manulife RetireReady Plus – Best SRS Endowment Plan

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

Features of Manulife RetireReady Plus:

• Choose Your Income Period: 5, 10, 15, 20 years, or until age 120.
• Get Up to 100% Guaranteed Monthly Income if you lose independence in 3 Activities of Daily Living (ADLs). (50% for 2 ADLs; 100% for 3 ADLs).
• Flexibly adjust your income payout duration.
• Premiums waived in case of Total and Permanent Disability.
• Receive a lump sum equivalent to 50% of one year’s premium if you face retrenchment.
• Option to freeze premiums for one year.
• Ensure policy continuation by naming a loved one as the new insured person.

#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 an SRS endowment retirement plan that provides a steady flow of monthly income from your selected retirement age.

Features of Gro Retire Flex Pro:

• Easily change the income payout duration as needed.
• Keep the policy going with a Secondary Life Insured.
• Protection Benefits (for Regular Premium policy only):
  • Receive 50% monthly cash benefit if disabled (Certain conditions apply).
  • Get 105% of your net premiums back in case of an Accidental Death.
  • Option to delay premium payments for 6 months if you face 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:

• Pick a policy length from 10 to 30 years or until age 120.
• Keep your policy active with a Secondary Life Insured.
• No need to pay premiums if you become Totally and Permanently Disabled (TPD).
• If you face retrenchment, you can delay premium payments for 6 months.

#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:

• Longer policy duration, lasting until age 125.
• Easily access your cash value.
• Keep your policy going with a 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 invest a lump sum as a single premium, eliminating the need for monthly contributions from your pocket.
8. You benefit from dividends and bonus gains when policy funds perform well—If they don’t, you still get your 100% initial capital back

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 plans a right fit for your Investment portfolio?

Let our partnered financial planners compare, analyse and advise you further. In order to customise the SRS endowment plan to your requirements, 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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