SRS Contributions Age Limit Allows Withdrawals02 Jul 2007
I refer to the letter by Mr Gopinath Menon on 27 June 2007 on removing the age limit for Supplementary Retirement Scheme (SRS) contributions.
2. The SRS was established primarily to promote retirement savings. Under the scheme, individuals are allowed to make SRS contributions up to the retirement age, currently set at 62. If the retirement age is raised, the age limit for SRS contributions will go up correspondingly.
3. If we allow contributions beyond the stipulated retirement age, an SRS member who is past retirement age would be able to obtain a tax deduction from these SRS contributions, and immediately withdraw the contributions but be taxed only on 50% of the withdrawal.
4. Nonetheless, we will consider Mr Menon's feedback on how we can better support Singaporeans who wish to work longer and contribute more to the SRS over a longer period of time.
LOW YIN LENG (MS)
DEPUTY DIRECTOR (SOCIAL PROGRAMMES)
MINISTRY OF FINANCE