If you have a Supplementary Retirement Scheme ("SRS") fund, you may want to consider investing in Aviva's MyIncomePlus to enhance your returns.
Currently, SRS Funds only earn 0.05% p.a.. This is extremely low even in today's low interest rate environment! As you will likely leave the SRS Funds in the scheme for a long time, it is worth considering investing the funds to provide you with higher returns in the long-term.
Aviva's MyIncomePlus is designed specifically to maximise your tax benefits from your SRS account.
Its features include:
MyIncomePlus provides a guaranteed return of up to 1.81% p.a. at maturity and it is 100% capital guaranteed at the end of the accumulation period (choice of 5 or 10 years). This means that the guaranteed return at maturity could be up to 36x the SRS rate!
As this is a participating plan, you can also enjoy an additional terminal bonus to your policy that will give you an even higher return.
See Aviva's MyIncomePlus brochure here.
Get up to $500 cashback on your policy! Valid for sucessful applications up to 30 Jun 2021.
|Single Premium||Cash Rebate / DIY Points|
|$300,000 and above||$500|
|$100,000 to $299,999||$250|
You can now also use your existing DIY$ to get cash rebates on Wealth Solitaire and Infinite Harvest and get 25% boost up on your points!
MyIncomePlus is eligible for the Refer a Friend programme. Refer your friends and family for MyIncomePlus today and get DIY$10 for each referral.
DIY$ can be exchanged for vouchers including InsureDIY vouchers, NTUC Fairprice and Cold Storage vouchers. Check out our rewards catalogue here.
How to refer:
Simply ask your friend to select "Referral" during the application process and key in your email address or referral code when they apply for i-Secure here.
* Only applicable if your friend has not bought any insurance policy through InsureDIY before. DIY$ will only be awarded after your friend's free-look period.
1. How is MyIncomePlus different to stock, exchange-traded funds (ETFs) and real estate investment trusts (REITs)?
MyIncomePlus is capital guaranteed and offers guaranteed returns. This is unlike stocks, ETFs and REITs where your capital can be wiped out by market movements. On top of the guaranteed returns, MyIncomePlus provides additional non-guaranteed returns. Once the insurer declares the bonus each year, this bonus is locked-in and cannot be taken away.
2. When can I start withdrawing from my SRS account without penalty?
You can make withdrawals after the statutory retirement age based on when your first SRS contribution was made.
3. What does the 50% tax concession mean?
After your retirement age, you can start withdrawing from your SRS account for a period of 10 years. Only 50% of the funds withdrawn are subject to income tax. As income up to $20,000 attract no income tax in Singapore, you can withdraw up to $40,000 SRS funds ($20,000 x 2) per year without having to pay any tax. This means that you can withdraw up to $400,000 tax-free over 10 years!
The guaranteed monthly income from MyIncomePlus could be completely tax free if the monthly income does not exceed $3,333 per month. ($40,000 over 12 months)
* Based on a 41 year old Male Non-Smoker.
** MyIncomePlus is not classified as a life annuity. So the 50% tax concession after 10 years will not apply. However, if your withdrawals (and other income) continue to be below the lowest income tax bracket, you will enjoy withdrawals tax free.
InsureDIY is a Broker licensed by the Monetary Authority of Singapore and is an Exempt Financial Adviser. This advertisement has not been reviewed by the Monetary Authority of Singapore.