Supplementary Retirement Scheme

Debated in Parliament on 15 Jan 2019.

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Assoc Prof Walter Theseira requested detailed data from the Minister for Finance on the number of contributors and amounts contributed to the Supplementary Retirement Scheme (SRS) over the last five years, broken down by marginal income tax rate, and asked if the Ministry has studied the determinants of SRS contribution behavior.
Heng Swee Keat explained that the SRS, introduced in 2001, is a tax-incentivized voluntary scheme to complement the Central Provident Fund (CPF), with statistics published annually, noting that about 60% of account holders contribute each year.
Approximately 90% of contributors earn above $80,000 (average marginal tax rate ~15%) and contribute around $14,000 annually, while the remaining 10% earn below $80,000 (average marginal tax rate ~3.2%) and contribute around $9,000 annually, a pattern stable over five years.
The Minister acknowledged that understanding SRS contribution behavior involves complex factors like awareness, income levels, and personal willingness, and the Government will continue studying this with academics and researchers.

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Assoc Prof Walter Theseira

Assoc Prof Walter Theseira asked the Minister for Finance with regard to the Supplementary Retirement Scheme (SRS) for each of the last five years (a) what is the number of contributors, by marginal income tax rate of assessable income, that is, pre-SRS contribution; (b) what are the amounts contributed, by marginal income tax rate of assessable income; and (c) whether the Ministry has studied the elasticity and determinants of SRS contribution behaviours and the results of such studies.

Heng Swee Keat

The Supplementary Retirement Scheme (SRS) was introduced in 2001 as a tax-incentivised scheme to encourage individuals to save voluntarily for retirement, beyond the basic provisions of the Central Provident Fund (CPF). Taken together, the CPF and SRS comprise our system of mandatory and voluntary contributions to help people save for retirement.

Each year, the Ministry of Finance (MOF) publishes the total number of SRS account holders and total SRS contributions. These statistics, dating back to the scheme's inception in 2001, are available on the MOF website. In a given year, about 60% of the account holders contribute to their account.

Ninety percent of those who made an SRS contribution in the past year have an Assessable Income of more than $80,000, which corresponds to an average marginal tax rate of about 15%. In this group, the average contribution in a year has been around $14,000.

The remaining 10% who contributed in the past year have an Assessable Income of below $80,000. The average contribution in a year has been around $9,000. Their average marginal tax rate is about 3.2%. This contribution pattern has been fairly stable over the past five years.

The details of elasticity and determinants of SRS contribution behaviour are complex. Possible factors include awareness of the scheme, income levels and personal willingness to set aside more for retirement. Nevertheless, the Government will continue to study this matter, together with academics and researchers, to better understand how Singaporeans think about financial planning for retirement.

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Assoc Prof Walter Theseira requested detailed data from the Minister for Finance on the number of contributors and amounts contributed to the Supplementary Retirement Scheme (SRS) over the last five years, broken down by marginal income tax rate, and asked if the Ministry has studied the determinants of SRS contribution behavior.
Heng Swee Keat explained that the SRS, introduced in 2001, is a tax-incentivized voluntary scheme to complement the Central Provident Fund (CPF), with statistics published annually, noting that about 60% of account holders contribute each year.
Approximately 90% of contributors earn above $80,000 (average marginal tax rate ~15%) and contribute around $14,000 annually, while the remaining 10% earn below $80,000 (average marginal tax rate ~3.2%) and contribute around $9,000 annually, a pattern stable over five years.
The Minister acknowledged that understanding SRS contribution behavior involves complex factors like awareness, income levels, and personal willingness, and the Government will continue studying this with academics and researchers.

Questions identified by AI (learn more)

Supplementary Retirement Scheme | PAPERCUTS

Supplementary Retirement Scheme

Debated in Parliament on 15 Jan 2019.

Summary written by AI (learn more)

Assoc Prof Walter Theseira requested detailed data from the Minister for Finance on the number of contributors and amounts contributed to the Supplementary Retirement Scheme (SRS) over the last five years, broken down by marginal income tax rate, and asked if the Ministry has studied the determinants of SRS contribution behavior.
Heng Swee Keat explained that the SRS, introduced in 2001, is a tax-incentivized voluntary scheme to complement the Central Provident Fund (CPF), with statistics published annually, noting that about 60% of account holders contribute each year.
Approximately 90% of contributors earn above $80,000 (average marginal tax rate ~15%) and contribute around $14,000 annually, while the remaining 10% earn below $80,000 (average marginal tax rate ~3.2%) and contribute around $9,000 annually, a pattern stable over five years.
The Minister acknowledged that understanding SRS contribution behavior involves complex factors like awareness, income levels, and personal willingness, and the Government will continue studying this with academics and researchers.

Questions identified by AI (learn more)

Full Transcript

Assoc Prof Walter Theseira

Heng Swee Keat

Summary written by AI (learn more)

Assoc Prof Walter Theseira requested detailed data from the Minister for Finance on the number of contributors and amounts contributed to the Supplementary Retirement Scheme (SRS) over the last five years, broken down by marginal income tax rate, and asked if the Ministry has studied the determinants of SRS contribution behavior.
Heng Swee Keat explained that the SRS, introduced in 2001, is a tax-incentivized voluntary scheme to complement the Central Provident Fund (CPF), with statistics published annually, noting that about 60% of account holders contribute each year.
Approximately 90% of contributors earn above $80,000 (average marginal tax rate ~15%) and contribute around $14,000 annually, while the remaining 10% earn below $80,000 (average marginal tax rate ~3.2%) and contribute around $9,000 annually, a pattern stable over five years.
The Minister acknowledged that understanding SRS contribution behavior involves complex factors like awareness, income levels, and personal willingness, and the Government will continue studying this with academics and researchers.

Questions identified by AI (learn more)

Supplementary Retirement Scheme

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Assoc Prof Walter Theseira

Heng Swee Keat

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Supplementary Retirement Scheme

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Questions Identified

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Assoc Prof Walter Theseira

Heng Swee Keat

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