Statutory retirement age (SRA) in Singapore is 62 yo. (link)
1) If withdrawal before SRA –> 100% of the sum withdrawn will be taxed.
2) If withdrawal after SRA –> 50% of the amount withdrawn is taxable.
To avoid paying any tax at withdrawal, you can opt to stagger the withdrawal amount over 10 years.
Scenario : I just turned 62 and will be withdrawing $40k from my SRS
Since its after SRA, only 50% (ie. $20k) will be subjected to income tax.
However in Singapore, the first S$20k of chargeable income is exempted from tax, so effectively
the total $40k is tax free - which works out to $3.33k per month, not too bad at all.
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