I see $1930 yearly tax savings as a returns of 12% immediately from the $15,300 ‘investment’ into SRS. This returns will add on to the returns from the investments that I make using my SRS and I can also compound this $1900 tax savings immediately by buying stocks and REITs. Definitely worth it!
I think most people underestimate our CPF because it is auto credited and so most of us don’t give much thought to it. It gives us auto 2.5-6% returns and also with CPF life when we retire and it continues to pay out as annuity as we age. Before retirement, it is still our money and we have the flexibility to invest in stocks or actual property as we deemed fit and this will generate returns! Our CPF is really powerful!
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