Who's contributing to their SRS account this year?

[palantir]

thanks specuvestor. seems the usefulness of the SRS is a little dimmer for me.
1. the earlier you contribute
2. the better your investment performance
the higher your taxes which you may pay.
This hasn't taken into account the future tax rates upon withdrawal, which even the PM acknowledges that it may be on the rise
http://business.asiaone.com/Business/New...67819.html

throw in the kicker that if you pass away. it is all deemed as withdrawn.

i better review my SRS contributions. might be better to live with the certainty of today's tax rates than the above uncertainties.

anything i got wrong above?

My view is that SRS account can be used as another bucket of retirement money. Then you have another bucket of money from personal saving, CPF account etc. One can cap the amount in SRS at $400,000 by the time one reaches the retirement age (say 62).

Except for those high earners, one should be in mid 30s if he is able to contribute $10k per year into SRS. Doing consistently for another 20 years means the account will have $200k as capital. Unless one invest in high risk high gain vehicle, the capital growth (including dividends) may probably can reach $400k at max.

So by age 62 and alreay retired, one just withdraw $40k per year over 10 years for his monthly expenses. This is below the chargeable income (based on $20k now) and should be able to avoid being taxed. Of course, the chargeable income or the tax rate might be raised in future. One will just adjust accordingly