Besides the benefit of having more savings to draw on when you retire, you will enjoy the following tax benefits on contributions to SRS:
You can claim tax relief for contributions made to your SRS account. SRS contributions made on or after 1 Jan 2017 are subject to a cap on personal income tax relief of $80,000 per Year of Assessment (YA) from YA 2018. From YA 2018, each dollar of SRS contribution will reduce your income chargeable to tax by a dollar, if your personal income tax relief (including the SRS relief) does not exceed $80,000 per YA.
Investment gains will accumulate tax-free in SRS.
Tax will be payable only when you withdraw your SRS savings (comprising both your SRS contributions and gains on investments). If you withdraw your SRS savings upon retirement*, only 50% of the savings withdrawn will be subject to tax. If you purchase an annuity, this concession applies for as long as you receive the annuity stream. Otherwise, you may spread your withdrawals over a period of up to 10 years to meet your financial needs. Spreading out your withdrawals will generally result in greater tax savings.
(*Upon reaching the statutory retirement age that was prevailing when you made your first SRS contribution.)