Why SRS accounts are a good way to save

[egghead]

What will happen to it if the SRS account holder died? Is that still taxable?

Refer to post #100 of this thread.

[CCUV]

All the good things been said about SRS but have anyone considered the "shift in goal post" by the government. I think the shift in goal post in CPF is very well documented, from cpf investment bank buying share(last time every single dollar can go into stocks,to only 30% after meeting 20-40K min), extension of retirement age(they have being doing it), from capping withdrawn of housing use from special account,medisave life,cpf life etc. All these are sign that no policy regarding cpf including SRS are spare in the future. I can think of one potential rule change,for e.g withdrawal penalty are increase from 5 to 10% etc. I am abit wary of most government scheme. The good scheme might be one smart alex wanting to meet his KPI from turning bad. Food for thot

If you look at all the adjustments to CPF you mentioned, they were done in response to situation and circumstances. If you choose to call it shifting of goal posts, it means you do not understand why those changes were made.

You may have different view,i fully respect it but the bottomline is very clear,cpf members are been force to hold back their money from retirement, if everything was so good about our pension scheme which the big bro had been boasting about years of investment corp making x amount of return constantly ,there wouldn't be a need to delay. The state had fail it people in my view.

[Caelitus]

When we invest, if external factors cause our initial projections on future earnings to be off target, we project again, monitor and act. If retirement age is extended because we are living longer, living cost is climbing and manpower pool is shrinking, why do we call it a shifting of goal posts?

If the revised framework is good enough, we should see the system running on its own till the next impetus for change. In my office, we always say that small changes come every 5 years and big changes every 10 years. A system that is late or resistant to making structural changes in response to a changed environment will be broken. The investing world is full of examples like this.

My humble opinion. Plan, project, monitor and act.

[tanjm]

When we invest, if external factors cause our initial projections on future earnings to be off target, we project again, monitor and act. If retirement age is extended because we are living longer, living cost is climbing and manpower pool is shrinking, why do we call it a shifting of goal posts?

If the revised framework is good enough, we should see the system running on its own till the next impetus for change. In my office, we always say that small changes come every 5 years and big changes every 10 years. A system that is late or resistant to making structural changes in response to a changed environment will be broken. The investing world is full of examples like this.

My humble opinion. Plan, project, monitor and act.

Actually there is no shifting of goal posts. The goal has always been to ensure adequate retirement income for the average Singaporean. Things like withdrawal age are merely metrics. People are mistaking the tools or milestones for the goal posts.

[Bluechipfan]

All the good things been said about SRS but have anyone considered the "shift in goal post" by the government. I think the shift in goal post in CPF is very well documented, from cpf investment bank buying share(last time every single dollar can go into stocks,to only 30% after meeting 20-40K min), extension of retirement age(they have being doing it), from capping withdrawn of housing use from special account,medisave life,cpf life etc. All these are sign that no policy regarding cpf including SRS are spare in the future. I can think of one potential rule change,for e.g withdrawal penalty are increase from 5 to 10% etc. I am abit wary of most government scheme. The good scheme might be one smart alex wanting to meet his KPI from turning bad. Food for thot

If you look at all the adjustments to CPF you mentioned, they were done in response to situation and circumstances. If you choose to call it shifting of goal posts, it means you do not understand why those changes were made.

You may have different view,i fully respect it but the bottomline is very clear,cpf members are been force to hold back their money from retirement, if everything was so good about our pension scheme which the big bro had been boasting about years of investment corp making x amount of return constantly ,there wouldn't be a need to delay. The state had fail it people in my view.

CPF and SRS if I may say, compliment each other. What's so bad about CPF? People keep complaining they cannot take out their money but they have already utilised the CPF money on housing, medical, education and even investment well before 55 yrs old! Even then, it's a total misconception and misleading to say you can't take money out at 55. You can if you have excess, that is, more money than the required minimum sum. You can then start to withdraw the minimum sum that you have 'left behind' in the CPF from the drawdown age of 62 (or is it 65?) Meanwhile, from 55 to
62 (65), your money in the CPF continues to earn you interest, risk free. No good??

[egghead]

You may have different view,i fully respect it but the bottomline is very clear,cpf members are been force to hold back their money from retirement, if everything was so good about our pension scheme which the big bro had been boasting about years of investment corp making x amount of return constantly ,there wouldn't be a need to delay. The state had fail it people in my view.

Mine is a different view but yours is the bottom line

[donmihaihai]

If cpf is pension then it will be less noises.

Goal post shifting is good as long as it is toward the right direction.

End of the day it is not about how good cpf is or how well managed. It is all about our money but we have no or little say on these money. No one can come out with scheme like this except government. Just 'bo song'.

Never believe that those billions are not there. How to make them disappear without a trace and for so long. Common sense say impossible.

[specuvestor]

You may have different view,i fully respect it but the bottomline is very clear,cpf members are been force to hold back their money from retirement, if everything was so good about our pension scheme which the big bro had been boasting about years of investment corp making x amount of return constantly ,there wouldn't be a need to delay. The state had fail it people in my view.

As discussed in various CPF threads, Singaporeans don't understand the risk of not getting their CPF money back in SINGAPORE DOLLARS is almost ZERO, because we determine how much SGD we print. If we are promised we will receive USD then probably we need to fret.

The question is the VALUE when we get it back. That becomes a much more complex economic problem. The delay and increasing minimum sum is a mathematical calculation on how not to overburden the state with retirement (especially in a greying population) and hence also the impact to the value of the SGD.

Similarly Americans and Japanese will get their pension in their local currency back. No doubt about that which naysayers failed to understand. But also no doubt what the long term value of the SGD vs the Yen and USD on its current trajectory based on the retirement burden projections of these 3 countries.

Anyway SRS is not CPF... I am not sure who is the counterparty of the SRS... I think technically it is the local banks not the state, but the presumption is evident

[egghead]

Under current rule - NO. However, I understand that they are now looking at allowing the withdrawer as you described.

From 1-Jul-2015, SRS withdrawal can be made without having to first liquidate the investments. Refer to below link.

MOF on SRS Withdrawal

[touzi]

I have used up more than 80% of my SRS to purchase stocks. I am wondering if it is advisable to use up 100%. What options do I have for rights issue if I do not have enough fund left in my SRS account to subscribe to the rights? Thanks.