The Supplementary Retirement Scheme needs a rethink
For many of us, it is not a retirement strategy, but a year-end admin chore and a tax-relief tool
EVERY December, without fail, a friend or a client of Endowus will ask apologetically whether they have left it too late to top up their Supplementary Retirement Scheme (SRS) account for the year.
The answer is almost always no – “almost”, because everyone’s circumstances differ. You could ask if topping up is an appropriate action. For the vast majority, it is not only a good idea, but a must. The window for top-ups stays open until the banks’ cut-off on Dec 31.
But the question itself tells you something. For many of us, SRS is not a retirement strategy. Instead, it is a year-end admin chore and a tax-relief tool, filed somewhere between the Christmas shopping and the office dinner and dance.
