How far have Singaporeans progressed with hacking their CPF SA/RA and SRS?

I enjoy analysing data during my spare time and to see if there is any trend or deeper meaning from a macro perspective. I was reading through government statistics available online and I am amazed at how much and how far these data sets go back.

So I was interested to find out how far have Singaporeans progressed with hacking their CPF SA/RA and SRS till date, and one of the ways is to look at the tax reliefs claimed for both respectively. Reason also being, these tax reliefs are automatically claimed and there is no need to self declare, therefore numbers are accurate.

From the table, the number of working individuals had been steadily increasing since 2006. Out of this, the taxable group (individuals earning more than $20,000) is reaching a steady state of close to 74%. Though, this does not necessarily mean we are being more affluent, but that income is trying to play catch with inflation.

Needless to say, the number of Singaporeans with contributions to their CPF has increased, and it is well over 50% in the 10 years span from 2009 to 2018. Percentage-wise, CPF cash top-ups is but slowly increasing as well. With social media and increased awareness, numbers have increased about 5 times.

The current annual tax reliefs for SRS is $15,300. For 2018, the average placed into the SRS by each of these individuals is $14,015. The true average is probably much higher, as a number of people have opened a $1 account to lock in to the prevailing retirement age.

Withdrawals are penalty-free only if they take place after the statutory retirement age that was prevailing at the time of your first SRS contribution. The statutory retirement age is currently at 62.

CPF cash top-ups in the preceding year under the CPF Retirement Sum Topping-Up Scheme receives a max $7,000 tax relief for self:

Special Account (for recipients below age 55); or

Retirement Account (for recipients age 55 and above).

CPF cash top-ups in the preceding year under the CPF Retirement Sum Topping-Up Scheme to the Special/Retirement Accounts receives a max of another $7,000 tax relief for:

Parents or Parents-in-law;

Grandparents or Grandparents-in-law;

Spouse; and/or

Siblings

In total, a maximum of $14,000 tax reliefs apply for each individual. For 2018, the average CPF cash top-up is $7,013, which is close to the steady state of low $7,000 annually. It is a little harder to delve deeper as an individual is able to contribute to more than 1 party subject to the max tax relief amount of $14,000.

How far are you from the national statistics?

(Disclaimer: This is a personal observation and deduction of data, which may be inaccurate)