Why SRS accounts are a good way to save

[valuebuddies]

This statement is alarming:
Why is this so?

Note 2 : Under the Income Tax Act, where an SRS member dies, any sum standing in his SRS account shall be deemed to be withdrawn ('Deemed withdrawal' amount) on the date of his death even though no physical withdrawal may have been made on that day.

https://www.iras.gov.sg/irasHome/page04.aspx?id=166

i suppose this is only for tax purposes, which theoretically makes sense? it is not as if his money is "gone". His/her living spouse is still able to withdraw the money (lumpsum), less any tax payable.

This is correct, please also see https://www.iras.gov.sg/irasHome/uploade...drawal.doc