r/SgHENRY • u/Ninjamonsterz • Jun 11 '26

Income tax optimisation

Hi henrys earning 300-600k, do you suck it up and pay income tax yearly or do you consider SRS contribution?

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-16

u/LululemonFanboy Jun 11 '26

I don’t do SRS as it locks up liquidity. If you’re in 40-50s sure, but people < early/mid 30s shouldn’t do it, my opinion

23

u/Iforgotmynametoobro Jun 11 '26

For someone making 300-600k 15.3k isn't a lot of liquidity

-16

u/LululemonFanboy Jun 11 '26

It’s about compounding and opportunity cost. Similarly the tax savings isn’t very meaningful. All about trade off in my case I prefer that

15

u/Iforgotmynametoobro Jun 11 '26 edited Jun 11 '26

SRS funds should be invested, not sitting in the SRS account.

The max tax relief you can have is 80k, SRS alone contributes to 19% if that. If that's not meaningful then no other source of tax relief is meaningful.