The Supplementary Retirement Scheme (SRS) was started in 2001. I first learnt about it around 2003. Still, it took me a good 3 years before I made my first contribution. The reason? I had not figured out an exit strategy from the SRS scheme. Although SRS contributions are tax-deferrable and only 50% of the withdrawals after the age of 62 would be taxed, there was a lingering concern that I could still end up paying more tax if I could achieve a good rate of returns on the SRS funds. After 8 years of contributing to the SRS account, I finally got around to carry out a sensitivity analysis to determine whether my concerns were valid. The analysis is carried out based on the following assumptions:
| Investment Period |
30 years |
| Withdrawal Period |
10 years |
| Annual Income |
$30,000 - $120,000 |
| Annual SRS Contribution |
$12,000 |
| Annual Rate of Returns |
0% - 12% |
...
