Latest news with #SupplementaryRetirementScheme
Business Times
a day ago
- Business
- Business Times
MOF says SRS withdrawal process ‘can be improved'; to work with banks
[SINGAPORE] The government will work with Supplementary Retirement Scheme (SRS) bank operators to improve the process of withdrawing funds from their account. The response comes shortly after The Straits Times published a forum letter on Monday (Jun 16) by an account holder, Francis Yeoh, who described the current process as inconvenient, as it requires an individual to be physically present at a bank. The SRS is a voluntary scheme that was created to complement the Central Provident Fund (CPF) to help Singaporeans save more for their retirement by allowing them to contribute up to a maximum of S$15,300 into accounts operated by DBS, OCBC and UOB. In late 2024, a proposed framework aimed at expanding and streamlining the SRS was shelved after the three local banks withdrew their joint application, prompting the Competition and Consumer Commission of Singapore to halt its review . The framework had sought to improve access to SRS products and boost competition among providers. Unlike withdrawals, contributions to SRS, which are eligible for tax relief, can be processed digitally. In his letter, Yeoh noted that the process of requiring individuals to be physically present at a bank to withdraw funds from their SRS accounts was time-consuming, and described the process as 'surprisingly outdated and frustrating' – particularly given that CPF withdrawals can already be done online. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added that this seems 'misaligned with Singapore's push for digitalisation'. 'As our population ages, more retirees will seek access to their SRS funds,' said Yeoh. 'Requiring them to queue for hours to manage their retirement savings is inefficient, inconvenient and, frankly, unnecessary.' He added that he hopes the banks and the authorities can review this process. In response to Yeoh's letter, the Ministry of Finance's director of communications and engagement, Farah Abdul Rahim, acknowledged on Friday that the current withdrawal process 'can be improved for greater convenience'. However, she explained that the current process of requiring account holders to be physically present at a bank when making a withdrawal is to allow SRS operators to give customised advice based on the individual's circumstances. 'This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction.' The Business Times has sought comment from the Association of Banks in Singapore, of which the three local banks are members. Christopher Tan, group chief executive officer of independent wealth adviser and fund management firm Providend, told BT that the feedback was valid, and highlighted the need for more flexible withdrawal options. Tan suggested that banks could offer three tiers of access to cater to different user preferences. The first would be a fully digital option, where account holders can use the bank's mobile application or an online portal to transfer funds from their SRS account into their preferred bank account. A second option could involve submitting a physical application form, with the funds either sent by cheque or credited directly. For those who are less digitally inclined or prefer face-to-face service, he said visiting a bank branch should remain an option.
Straits Times
a day ago
- Business
- Straits Times
Forum: SRS withdrawal process to be improved
We thank Mr Francis Yeoh for his letter 'Take the queueing pain out of SRS withdrawals' (Jun 16). The Supplementary Retirement Scheme (SRS) aims to help Singaporeans save more for their retirement. Currently, SRS operators require members to be present in person for withdrawals and account closures, so that they can receive customised advice based on their individual circumstances. This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction. We agree that the current withdrawal process can be improved for greater convenience. The Government will take Mr Yeoh's feedback into account, and work with the SRS operators to improve the current process. Farah Abdul Rahim Director, Communications and Engagement Ministry of Finance More on this Topic Forum: What readers are saying Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
5 days ago
- Business
- Straits Times
Forum: Take the queueing pain out of SRS withdrawals
Forum: Take the queueing pain out of SRS withdrawals I have consistently contributed to my Supplementary Retirement Scheme (SRS) account over the years, diligently setting aside funds in preparation for retirement. Making contributions was always a straightforward process – essentially a regular bank transfer from my DBS Bank account to the SRS account. However, now that I am retired and wish to begin withdrawing these funds, I have encountered a surprisingly outdated and frustrating system. Unlike contributions, withdrawals cannot be made online. I was astonished to learn that I must physically visit a bank branch to carry out this simple transaction. Despite going on a weekday afternoon and trying two different branches, I ran into long lines extending outside. It is baffling that while SRS contributions can be done digitally in an instant, withdrawals require physical waiting, potentially for hours. Why the discrepancy? Even Central Provident Fund withdrawals can be securely processed online. This system seems misaligned with Singapore's push for digitalisation. A simple online process – secured via Singpass, secure messaging or even video calls – should suffice to safeguard against fraud. As our population ages, more retirees will seek access to their SRS funds. Requiring them to queue for hours to manage their retirement savings is inefficient, inconvenient and, frankly, unnecessary. I hope the banks or the relevant authorities can review this issue. Empowering retirees with secure digital access to their own savings is not just a convenience, it's a necessity. Francis Yeoh More on this Topic Forum: What readers are saying Join ST's Telegram channel and get the latest breaking news delivered to you.
