Should I contribute to SRS account?

Contributions to SRS are eligible for tax relief, subject to a cap on personal income tax relief of $80,000 per Year of Assessment from Year of Assessment 2018.

Investment returns are accumulated tax-free and only 50% of the withdrawals from SRS are taxable at retirement (referred to as a “50% tax concession”).

Please refer to MOF website for more information.

So, will I contribute to SRS account?

No. I am planning to contribute $7K yearly into CPF SA until it hits the minimum sum. This will allow me to enjoy the compunding effect of the 4% p.a. interest in CPF SA and also the tax saving of 7K every year.

I will only consider contributing to SRS account after my CPF SA minimum sum is reached.

One of the right way to grow your money is to make sure you don't lose it.