By MoneyBees
Count down to the day your SRS withdrawals stop carrying the 5% penalty, at 62, 63 or 64 by your first contribution date, and see your 10-year withdrawal window.
It is the statutory retirement age in force when you made your first SRS contribution: 62 if that was before 1 Jul 2022, 63 from 1 Jul 2022 to 30 Jun 2026, and 64 from 1 Jul 2026. If you have not contributed yet, your first contribution fixes it at 64.
No. IRAS says that once you have made your first contribution, any later change in the statutory retirement age, for example up to 65, does not affect you.
On or after the day you reach your SRS retirement age, which is that birthday. Withdrawals from then are penalty-free and only 50% of each one is taxed.
Over 10 years from the date of your first penalty-free withdrawal. In IRAS's example, a first withdrawal on 1 Apr 2025 can be spread until 31 Mar 2035.
IRAS's rules set no date by which you must make the first withdrawal. The 10 years start only when you make it.
It is treated as withdrawn right after the 10-year period ends, and 50% of it is taxed that year. You can leave it with the SRS operator, but later returns are taxed like any other investment.
The whole amount is taxed and you pay a 5% penalty. There is no penalty on death, on medical grounds, on bankruptcy, or for a full withdrawal by a foreigner who meets IRAS's 10-year conditions.
With no other income, up to S$40,000 a year: half of it, S$20,000, is taxable and the first S$20,000 of chargeable income is taxed at 0%. Over 10 years that empties S$400,000 tax-free.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).