Monday, February 12, 2007

Encourage more people to save for their retirement

Someone told me that the supplementary retirement scheme (SRS) is attractive only to tax payers.

We need a scheme to encourage the low income earners to make additional savings for their retirement.

The only way is to give them a top-up. For every dollar that they put aside in a retirement saving plan, the government tops up with a dollar, up to a certain limit.

I hope that some attractive scheme can be devised to make it attractive for the low income earners and self-employed to save for their retirement. A dollar for dollar matching scheme can go a long way to make it attractive.

2 comments:

  1. Thanks for alllowing comments without registration.

    Your suggestion on govt top-up is great.But would the SRS scheme be beneficial for those in their 30s & 40s? Please advise.

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  2. The SRS is beneficial to anyone who has to pay a high rate of personal income tax, regardless of age.

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