In Singapore, there is no specific investment vehicle known as an Individual Retirement Account (IRA) as it exists in the United States. However, Singapore provides various options for retirement planning and saving. Here are a few ways you can contribute to your retirement savings in Singapore:
- Central Provident Fund (CPF): CPF is a mandatory savings scheme for Singaporean citizens and permanent residents. It serves as a comprehensive retirement savings plan, providing contributions from both employees and employers. CPF contributions are made monthly and are based on a percentage of your income. The funds in CPF can be utilized for various purposes such as housing, healthcare, and retirement.
- Supplementary Retirement Scheme (SRS): The SRS is a voluntary scheme designed to encourage individuals to save for retirement. It allows Singaporeans and permanent residents to contribute additional funds to their retirement savings. Contributions to the SRS are eligible for tax relief, and the funds can be invested in a range of financial instruments, including stocks, bonds, unit trusts, and insurance products.
- Individual Investment Accounts: Singapore provides various investment account options through banks and financial institutions. While these accounts may not have specific retirement benefits like an IRA, you can still use them to save and invest for your future. These accounts typically offer a wide range of investment options, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
It’s worth noting that the above options are specific to Singapore’s retirement savings framework. If you are specifically looking for an IRA-like investment account, you may need to explore options provided by offshore banks or financial institutions outside of Singapore.