Saturday, April 9, 2016

Re-Employment Age Up. Will SRS Withdrawal Go Age Up Too?

Just saw a CNA news article reporting that the re-employment age is now up from 65 to 67.

When I wrote an article about the SRS last year, my genius readers wrote about just contributing a nominal amount into the SRS account to sort of "lock in" your initial contribution, so that the withdrawal age hopefully doesn't change. I did do a contribution of $1000, and since December until now, my investment is happily returning about almost 2% already. Not bad, not bad.

So anyway, does the re-employment age going up directly affects the SRS withdrawal age? Well, as of now, no. And I don't think that this would happen, unless they change the official retirement age, which is still 62.

Well, the thing is that the SRS withdrawal age is directly linked to the official retirement age, and not the re-employment age. The re-employment period from past 62 until 67 is just an extra "option" for older workers who want to continue working. Some people enjoying working and having a purpose, others feel that it would be better for their finances to continue working longer.

I don't really have a comment about the retirement age because I don't plan to retire once I hit 62. I plan to retire once I have enough money and when I feel like it. And probably at that point of time I would actually switch careers to do something that I enjoy more, so it wouldn't actually be "retiring" per se.

But I digress.

I still am very curious if the eventual change of retirement age (oh, don't fucking kid yourself. It WILL go up, the only question is when) will affect the withdrawal age of early contributors. Obviously, I've already implicitly made a bet so with my $1000 SRS contribution.

But guys.... seriously, if you want to retire at 30, or 40 or 50, you can do it. You can do whatever the hell you want. I feel like punching the next idiot I see on my newsfeed crying about how his government is so harsh and forcing him to work until 67.

Boo bloody boo hoo hoo. Go suck an egg.

2 comments:

  1. Even if the official retirement age were to change, I hope it will not affect us who have SRS a/c when the official retirement age was 62.
    starlight

    ReplyDelete
  2. I only scared that the cpf payout eligibility age will increase from 65 to 67

    ReplyDelete

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