Webinar: Tax hacks: Pay less tax with CPF & SRS top-ups
Endowus Insights

Leap into prosperity this CNY 💰     Get an $88 head start to growing your wealth.

Leap into prosperity this CNY 💰Get a $88 head start to growing your wealth.

Webinar: Tax hacks: Pay less tax with CPF & SRS top-ups

Jun 2022
Nov 2020
Webinar: Tax hacks: Pay less tax with CPF & SRS top-ups

Benjamin Franklin said these famous words, "In this world, nothing can be certain, except death and taxes." While Singapore has one of the lowest income tax rates in the world, being able to save on income tax is one of the surefire ways to accumulate wealth and plan for retirement. Tax savings, compounded over time, can form a significant part of your retirement wealth.

0:00 Introduction

11:18 CPF Special Account and Medisave top-ups and related tax reliefs

19:04 CPF top-up QnA

22:52 SRS 101

29:41 SRS investment options and why most people are placing money in cash

34:22 Why you should invest your SRS account

41:28 Why you should contribute earlier, and more into your SRS account

47:26 QnA Part 2

1:00:17 Dividend Withholding tax hacks for Singaporeans

Excerpts from the Presentation

Can Medisave be used to pay for private insurance premiums? (21:15)

Yes, Medisave can be used to pay for private health care insurance premiums (Integrated Shield Plans), up to a certain limit. That will be:

  • $300 per year for those at age 40 years and below on their next birthday
  • $600 per year for those at age 41 to 70 years on their next birthday
  • $900 per year for those at age 71 years and above on their next birthday

Should I top up SRS or CPF account if I want to get tax reliefs? (46:25)

For many young working adults in our 30s and even in our 40s, we have a long investment horizon of over 20 years. We can consider topping up our SRS over CPF top-up to try to grow our wealth at more than the CPF SA/MA rates of 4% by investing in a portfolio that holds more equities.

If you can afford to do both top-ups, you may want to do both since you can truly make full use of all tax reliefs, limited to the yearly $80,000 tax relief cap. Singapore tax residents should try to make full use of the tax relief as early and as young as possible for retirement planning purposes.

Is it possible to keep SRS investments without selling after the 10 year withdrawal limit? (49:58)

It is possible to transfer your stocks from your SRS accounts to your CDP account instead of liquidating it. Regardless, you still have to pay taxes, if applicable, for the value of the stocks that you are holding in SRS at retirement.

What do you mean when you say that SRS top-ups are tax deferred? (50:32)

It is a form of tax deferral because you only do not have to pay take for the contribution, but later on your withdrawals may be subjected to income tax (50% of the withdrawal amount). Effectively you are deferring an amount of taxes paid now, to potentially pay later on.


Investment involves risk. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Past performance is not an indicator nor a guarantee of future performance. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund. 

Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endow.us Pte. Ltd (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus Pte. Ltd., its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider (i) whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.

More on this Tag
Webinar: Tax hacks: Pay less tax with CPF & SRS top-ups

Table of Contents