Supplementary Retirement Scheme (SRS) Explained: Tax Relief

The Supplementary Retirement Scheme (SRS) is a voluntary retirement savings scheme that complements CPF. Its main attraction is tax relief: every dollar you contribute reduces your taxable income, up to a cap. It is most valuable for people paying higher marginal tax rates. This guide explains how the SRS works in Singapore, the contribution limits and tax relief, how to invest your SRS money, and the rules on withdrawals.

SRS contributions and tax relief

You open an SRS account with one of the participating banks: DBS, OCBC or UOB. You can contribute up to $15,300 a year if you are a Singapore citizen or permanent resident, or $35,700 if you are a foreigner. Contributions made by 31 December reduce your taxable income for that year, dollar for dollar, subject to the overall personal income tax relief cap of $80,000. If your marginal tax rate is 15%, a $10,000 contribution saves $1,500 in tax. At an 18% marginal rate, the full $15,300 contribution saves $2,754. Our Singapore income tax calculator shows your marginal rate.

Invest your SRS money

Cash sitting in an SRS account earns very little interest, so most people invest it. SRS funds can be used for Singapore Savings Bonds, Treasury bills, shares, ETFs, unit trusts, fixed deposits and certain insurance products. Leaving the money uninvested can mean inflation erodes the value of your tax savings. For a safe option, see our guides to Singapore Savings Bonds and Singapore T-bills; for long-term growth, see how to start investing in Singapore.

SRS withdrawals and tax

From the statutory retirement age that applied when you made your first contribution, you can withdraw without penalty, and only 50% of each withdrawal is taxable. You can spread withdrawals over up to ten years. If you keep each year's taxable portion low, for example below the level where income tax starts, you may pay little or no tax on the withdrawals. The statutory retirement age rose to 64 on 1 July 2026, so for new account holders the relevant age is now later.

For example, because the first $20,000 of chargeable income is tax-free, withdrawing $40,000 a year means only $20,000 is taxable. If you have no other income, that could be tax-free, so a $400,000 SRS balance spread over ten years might be withdrawn with little or no tax.

Withdrawing before that age is possible, but 100% of the amount is taxable and, for most people, a 5% penalty applies. Exceptions include withdrawals on medical grounds, on death, and by foreigners who have held their account for at least ten years.

Is the SRS right for you?

SRS works best if your current tax rate is meaningfully higher than you expect it to be in retirement, and if you are comfortable locking money away until then. If you pay little or no income tax, the benefit is small. Since you can open an account before contributing, some people open one early to lock in the statutory retirement age in force at that time.

SRS or CPF top-ups?

Cash top-ups to your CPF retirement savings also earn tax relief, and they earn guaranteed interest of at least 4% in the Special or Retirement Account, but the money is locked within CPF's rules. SRS gives more investment freedom and more flexible withdrawal timing, but no guaranteed return. Many higher earners use both. See our guides to CPF accounts and CPF interest rates, and how reliefs reduce your tax in our guide to Singapore income tax and CPF.

Frequently asked questions

How much can I contribute to the SRS?

Up to $15,300 a year for citizens and permanent residents, and $35,700 for foreigners.

How are SRS withdrawals taxed?

From the statutory retirement age, only 50% of each withdrawal is taxable; earlier withdrawals are fully taxable and usually carry a 5% penalty.

What can I invest SRS funds in?

Singapore Savings Bonds, T-bills, shares, ETFs, unit trusts, fixed deposits and certain insurance products.

The Supplementary Retirement Scheme (SRS) explained