I've finally set up my SRS account. In the past, I didn't feel the need to do so and these were my thoughts:
- no need for additional tax savings since I'm doing annual CPF top-up
- no clue what to invest using SRS funds
- don't want my $ to be stuck in an account till age 62. That's another 30 years (and I've only just passed thirty years on earth!)
However, circumstances have changed. As my income grew, I needed more avenues to reduce my tax. Not that I'm earning a lot, but the intent was the same as me doing my annual CPF top-up i.e I'd rather save the tax monies and channel to my mum and I, than doing nothing to my tax relief and paying 100% to the govt - likewise, topping up to my SRS would work the same way. The chart from DBS web below would serve as a good example of the potential tax savings we could save.
More importantly, the call to lock-in my retirement age at 62 has pushed me to take action because 2021 is the last year/chance before the statutory retirement age gets raised from 62 to 63 in 2022.
With that, I've been waiting for the SRS promo to come back, especially DBS's since I deemed it my main bank. All thanks to this Seedly post, I took actions immediately. Within a few minutes, I've set-up my SRS account and put in $10k so that I could clock the $50 reward (see Condition 1).
While coming up with this post and thinking about my next steps to maximise my SRS funds, DBS screwed up. Just when I said it's my main bank above. Grrrr.
I have no clue what's happening but I don't see my SRS account reflected....yet my $10k fund was already deducted from my main account.
This is despite checking in for the past few days thinking maybe it's my app but it's not in my ibanking page either. Meantime, I've logged a case and the customer service too realise there's something wrong and have flagged to their backend team. What are the odds of suay things happening to me?
Anyway, with my account set-up, I'd be looking into maximising my SRS funds plus clock Condition 2 to get extra $50 reward. I'll blog about my plan next. So stay tune!