One of the components mentioned in Singapore Budget 2011 was the increase of the income ceiling for CPF contribution from $4500 a month to $5000 a month.
In line with the higher CPF salary ceiling, the annual SRS contribution cap will also be increased.
The revised annual SRS contribution cap will be $12,750 (up from $11,475) for Singaporeans and Permanent Residents, and $29,750 (up from $26,775) for foreigners. This will apply to SRS contributions made from 2011 onwards.
Recently, I have also received a couple of questions on what people should do with their SRS money.
Do you know of any SRS investment which can offer a guaranteed 3-5% p.a.? We have been educated to save our taxes by opening the SRS accounts, but the problem is where do we find investments that can guarantee some decent returns that can beat inflation so that we can grow our SRS funds without just leaving it in the banks to get just a miserable less than 1% p.a return? Thanks.
Actually, for SRS, you can invest into most instruments except for direct property investments.
You can refer to the MOF website for more information on SRS. Download the SRS booklet at the bottom of the page and read the section on “Investing your SRS”.
The closest product you can find that gives you 3-5% p.a. is probably a 13-15 year Singapore government bond which currently gives about 3% p.a.