Retirement Planning Made Easy

With Singapore touted as one of the most expensive cities to live in worldwide[1], it comes as no surprise that retirement planning is paramount if you wish to enjoy your retirement years in peace.

A comfortable retirement nest is necessary to combat the rising costs of living, cushion against the climbing inflation rates and ensure you are living the life you deserve after the many years of hard work.

As women, we may often find ourselves having to juggle our many commitments and in turn, putting ourselves last. After caring for the needs of our children, family, and balancing that with the demands of our career, we often find it hard to carve out the time to pamper ourselves, much less plan for our retirement.

However, retirement planning is not as intimidating or time-consuming as you may think. It is also important to have a retirement plan so that you can look after yourself when you retire. Have you started setting aside money for your retirement? Do you often find yourself wondering how much you need to retire worry-free in Singapore?

It is important to re-evaluate your retirement plan at different junctures of your life to ensure that you are on the right track. While you, like many of us, may share the benefits of the Singapore government’s foresight in our mandatory CPF scheme, did you know that you can stretch your savings even further by setting aside your idle funds in a separate account?

Have You Heard Of The Supplementary Retirement Scheme (SRS) That Will Help You Save More For Your Old Age?

Offering attractive tax benefits, this account is part of the Singapore government’s initiative to address the growing financial concerns of our ageing population.  It’s a voluntary savings scheme which you can contribute any amount to your SRS account up to your SRS contribution cap by 31 Dec 2017 to enjoy tax relief in Year of Assessment 2018.

With such enticing tax relief, do bear in mind that there is a maximum contribution cap of S$15,300 for Singapore Citizens and Permanent Residents; and S$35,700 for foreigners each year. Plus, the total personal tax relief is capped at S$80,000.

Eager to reap the benefits of the SRS scheme and boost your retirement savings? Why not consider the UOB-Supplementary Retirement Scheme Account? 

Benefits of this account include:

1.Tax Relief (the following year)

Only 50% of the withdrawal will be subjected to income tax upon retirement.  For example, if you withdraw S$40,000 a year only S$20,000 (50% of S$40,000) will be taxed. If you have no other source of taxable income at that age, then you will not have to pay any income tax, since your first S$20,000 is tax-free. 

Spreading your withdrawals upon retirement over 10 years from your SRS account would guarantee you the tax savings.

2.Selected Range of Investment Opportunities

Allowing you to invest in multiple financial products also means that there is greater potential for enhanced long-term returns!Still daunted by the prospect of investing? Check out any of our articles on our website to make an informed decision!

The friendly UOB Bankers at any UOB Group Branch are also here to help you out! They can assist you in exploring available options – based on your risk appetite – and help you tailor-make the best investment plans to ensure you are maximising your returns on your SRS funds.

However do also note that this retirement scheme requires prudent planning, as premature withdrawals (before the retirement age of 62) will incur a penalty charge of 5%. 100% of your withdrawals will also be taxed at your prevailing income tax rate unless it was withdrawn under special circumstances such as death or medical ground.

Moreover, there are also a few restrictions with respect to direct property investments and investments in certain insurance products.

Ready to combat increasing costs of living in Singapore?Ready to assure a stress-free retirement life?

Start planning for your retirement today! Look out for what mistakes to avoid as well as the necessary questions you need to ask yourself to ascertain your retirement savings. These tips may also come in handy even if you have a financial planner you consult.

The only person who will take care of the older you someday is the younger you today, it is never too early to begin planning for your retirement!

*UOB is also running an exclusive promotion until the 31st December 2017: So why not open a UOB-SRS Account today and take the opportunity to treat your spouse or girlfriend to a High Tea Buffet for 2, at Singapore Marriott Tang Plaza Hotel, you know both of you deserve it! If you already have an SRS account and regardless where your account is, you will also enjoy complimentary dining for up to 4 (worth S$374) when you invest with UOB. Visit UOB-SRS or approach any UOB Banker for full details the promotion.Insured up to S$50k by SDIC.

[1] According to the Economist Intelligence Unit Worldwide Cost of Living Report 2017