As I approach retirement, my major concern is to ensure I have enough for retirement. So, I have been topping up my Central Provident Fund (CPF) whenever possible and contributing to the Supplementary Retirement Scheme (SRS) account to enjoy tax relief.
I also have an insurance policy that matured recently, and the funds were ploughed back to the SRS account, as the initial capital was from there. I decided to use the proceeds to subscribe to another policy.
As the amount was an odd figure, I decided to round it up, for which I needed to have enough in my account. I wrote a cheque for the balance to be deposited into my SRS account.
But the bank refused my deposit, and I was not accepted by the insurer on the grounds of insufficient SRS funds to take up the insurance cover. I was flummoxed.
The insurance policy is for the long term, with no drawdown in the first five years.
I was not looking for more tax relief; clearly, the maximum allowed is S$12,750.
There are also rules governing the taxation of SRS withdrawals.
Why is one not allowed to save more under the SRS, when one can do so under the CPF scheme by topping up the Retirement Account under certain conditions?
The authorities should make changes to allow for flexibility.
I also have an insurance policy that matured recently, and the funds were ploughed back to the SRS account, as the initial capital was from there. I decided to use the proceeds to subscribe to another policy.
As the amount was an odd figure, I decided to round it up, for which I needed to have enough in my account. I wrote a cheque for the balance to be deposited into my SRS account.
But the bank refused my deposit, and I was not accepted by the insurer on the grounds of insufficient SRS funds to take up the insurance cover. I was flummoxed.
The insurance policy is for the long term, with no drawdown in the first five years.
I was not looking for more tax relief; clearly, the maximum allowed is S$12,750.
There are also rules governing the taxation of SRS withdrawals.
Why is one not allowed to save more under the SRS, when one can do so under the CPF scheme by topping up the Retirement Account under certain conditions?
The authorities should make changes to allow for flexibility.
