Pace your SRS

Just like running a race, it is good to know how far you have run versus how much time you have got left to complete the race.

The "race" distance: Contribution cap

• The SRS contribution cap for a Singaporean or a SPR is SGD11,475, calculated as 15% x 17 x SGD4,500 CPF monthly salary ceiling.


• The SRS contribution cap for a foreigner is SGD26,775, calculated as 35% x 17 x SGD4,500 CPF monthly salary ceiling.

Example of how to "pace your SRS" savings:-
1) Profile: Singaporean & SPR with monthly salary SGD3000

Suggestion: keep aside min 10% (max SGD1,043.18) of SGD3,000 = SGD300 into "money market fund"; In Nov 2008, calculate your esimated income for entire year of 2008 including Dec 2008, and calculate your YA2008 taxes using IRAS's spreadsheet calculator. (link to be given after IRAS has it uploaded)

It will probably look like this:

2) Profile: Foreigner with monthly salary SGD6000

Suggestion: keep aside min 15% (max SGD2,434.09) of SGD6,000 = SGD900 into "money market fund"; In Nov 2008, calculate your esimated income for entire year of 2008 including Dec 2008, and calculate your YA2008 taxes using IRAS's spreadsheet calculator. (link to be given after IRAS has it uploaded)

It will probably look like this:

Email me for details. :-)

..............Extract from www.mof.gov.sg..............
Q2: Is MOF conducting educational sessions on the scheme?

A: The SRS is for the private sector to drive. As financial institutions market SRS products to the public, they will also familiarise the public with SRS. MOF will not be involved.

..............Extract from www.mof.gov.sg..............