It's only a few months until tax season, a.k.a. one of the most stressful times of the year.

Fortunately, there are practical ways to reduce your tax bill while strengthening your retirement position. Legally. Here's how.

Before you do anything else, get a clear picture of your tax obligation. You can review your Notice of Assessment (NOA) on the IRAS myTax Portal after filing your taxes. This shows your taxable income after deductions such as relief claims.

Take a moment to make sure everything is accurate. Errors do happen, and amending them within the 30-day window can prevent you from overpaying. Think of this as your starting point. After all, you can't optimise what you don't fully understand.

For many working Singaporeans, this should already be familiar, but it's still worth mentioning. The more you top up, the more savings you build over time.

Cash top-ups to your CPF Special Account (SA) or Retirement Account (RA) essentially increase your future CPF LIFE monthly payouts from age 65 onwards, giving you a stable stream of income for as long as you live.

There's also a tax benefit to consider, which can come in handy especially for homeowners who are still servicing a mortgage. You can enjoy up to S$8,000 in tax relief for cash top-ups to your own CPF, plus an additional S$8,000 for top-ups made to eligible family members. Just keep in mind that all personal income tax reliefs are subject to an overall S$80,000 cap per year of assessment. Before making any top-ups, it's worth checking whether you're able to fully utilise the reliefs available.

And if you want more CPF tips, I have just the article for you.

The SRS is a voluntary savings plan designed to complement your CPF and help you save more for retirement with tax perks! Singapore Citizens (SC), Singapore Permanent Residents (SPR) and foreigners are all eligible to open an account as long as they fulfill requirements.

If you qualify and ready to open an account, you can approach any of these three bank operators that manage SRS:

1. Overseas-Chinese Banking Corporation (OCBC) Ltd
2. United Overseas Bank (UOB) Ltd
3. DBS Group Holdings Ltd

You can make deposits to your SRS account each year up to the annual contribution limit ($15,300 for SC and SPR, $35,700 for foreigners). These contributions qualify for personal income tax relief, subject to the overall tax relief cap for that year of assessment.

While SRS funds can be withdrawn at any time, it's important to understand that there can be trade-offs. If you withdraw before the statutory retirement age (right now it's 63 years old, but it will be changed to 64 years old as of 1 July 2026), you'll have to pay a 5% penalty. On top of that, the full amount withdrawn will be taxable.

In contrast, withdrawals made on or after the statutory retirement age enjoy a significant advantage. Only 50% of the withdrawn amount is subject to tax. Because of this, SRS works best as a long-term planning tool. So make sure you have enough short-term liquidity before committing funds.

Importantly, SRS savings don't have to sit idle. They can be invested in approved instruments, potentially delivering higher returns than standard bank deposits. Of course, it goes without saying that any investment comes with its own risk and the possibility of capital loss. So it's crucial that you consider your risk tolerance carefully, perhaps even consult a financial adviser to consider different options that align with your financial goals.

Under the SG60 package announced in Budget 2025, Singapore tax residents will receive a personal income tax rebate of 60% of tax payable, capped at S$200 for the year of assessment 2025. On top of that, some banks periodically offer cash rebates for income tax payments made via GIRO.

On their own, these amounts may seem modest. But when used intentionally, they can make a meaningful difference.

Saving on taxes is nice and all, but you can't rely on that alone to fund your retirement. The question is: what do you do with the money that would have gone to taxes? Do you let it sit idly and slowly disappear into daily expenses? Or do you become more intentional about it and put that money to work?

Ultimately, for many Singaporeans, owning property remains one of the most effective tools when it comes to planning for retirement. Not because it's the popular choice (though it's popular for a reason), but because property tends to be the largest and most durable asset people build over their working lives. No matter how long you plan to hold, from short to long term, property can give you capital appreciation over time and the option of rental income.

When tax savings are channelled into property-related decisions, it helps you build equity. And these small sensible decisions will stack up over time. For example, using your tax savings to pay down your mortgage reduces your outstanding loan, which means you pay less interest over time. Plus, it can shorten your loan tenure or improve your cash flow. Or, you can set those savings aside for your next purchase, giving you more flexibility when upgrading or investing.

What's really happening here is sequencing. Tax planning improves cash flow. Better cash flow supports stronger property decisions. And well-structured property ownership, in turn, can give you retirement security. This is the kind of mindset that the Property Wealth System (PWS) framework is built around. It's about making sure that your property decisions and retirement planning reinforce one another.

Paying less tax won't magically make you retire rich. But what you do with your tax savings makes all the difference. It can definitely become a tool for retiring more comfortably, if you play your cards right.

That's why we always encourage homeowners and aspiring investors to keep learning and asking how property fits into their long-term plans. If this article got you thinking about how your decisions today can shape your retirement years, you might find our upcoming seminar useful.

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