Investing using SRS account Started in 2001, the SRS, which stands for Supplementary Retirement Scheme, is a voluntary initiative whose key purpose is to help citizens, permanent residents (PR) and foreigners build up their retirement nest egg with the added tax incentive. Contribution to the SRS account will receive a dollar-for-dollar tax relief up to $15,300 for citizens and PRs and $35,700 for foreigners. This means that if your taxable income is $55,300 which will result in a total tax payment of $550 (for the first $40,000) plus (7% * 15,300 = $1,071) = $1,621, you can reduce that to just $550 (thus saving $1,071 in taxes to be paid) once you contribute the maximum SRS amount of $15,300, thus bringing your taxable income to $40,000. Do note however that there is a personal income tax relief cap of $80,000 each year. I have written pretty extensively on how to go about withdrawing from your SRS account when you hit the age of 62 in both these articles: How you can maximize tax benefits through strategic SRS contribution and withdrawal...