SRS and RSTU are Singapore's two main voluntary tax-deferred retirement schemes. They both reduce your tax bill today in exchange for locking money up for retirement, but they differ on returns, flexibility, and withdrawal taxation.
| SRS | CPF RSTU | |
|---|---|---|
| Annual relief cap | S$15,300 (SC/PR), S$35,700 (foreigners) | S$8,000 self + S$8,000 family |
| Counted toward S$80k overall relief cap | Yes | Yes |
| Returns | Whatever you invest in (cash, ETFs, bonds) | 4% guaranteed (CPF SA / RA) |
| Withdrawal age | Statutory retirement age at first contribution (currently 63, 50% taxable) | From age 55 (after FRS set aside) |
| Early withdrawal penalty | 100% taxable + 5% penalty | Not allowed except in very limited cases |
| Family member top-up | Not applicable | Yes — up to S$8k each for parents/spouse/siblings (spouse/sibling income must be ≤ S$8k unless disabled) |
| Tax-free withdrawal at retirement | Up to ~S$40k/yr (≈S$400k over 10 yrs) if no other income | Not taxed at all (CPF payouts are tax-free) |
| Account after 55 | Stays your SRS account, invest as before | Tops up SA if under 55, or RA if 55+ (SA closed for 55+ since Jan 2025) |
| Death payout | Estate (taxed on 50%) | Per CPF Nomination, tax-free |
| Investment flexibility | High — stocks, ETFs, REITs, FDs, T-bills | None within RSTU (CPF earns CPF rates) |
Use both — RSTU first (up to S$8k for the guaranteed 4% return) then SRS (up to S$15.3k, invested into low-cost ETFs). Together they shave up to S$5,600 off a high-marginal-rate taxpayer's annual bill, while building two distinct retirement pots with different risk profiles. Never leave SRS in cash.
Yes. The two are separate schemes with separate caps. A SC/PR can claim up to S$15,300 in SRS relief plus up to S$8,000 in self RSTU relief plus up to S$8,000 in family-member RSTU relief — S$31,300 total in tax relief, subject to the overall S$80,000 personal relief cap.
The SRS balance is deemed withdrawn on death, but only 50% of it is taxable (the same concession as a withdrawal at the statutory retirement age) and the tax can be spread over up to five years. The balance is then distributed per your SRS nomination or, if none, your estate. So beneficiaries inherit the SRS pot net of tax — but on far better terms than a premature living withdrawal.
Because only 50% of each SRS withdrawal is taxable and the first S$20,000 of chargeable income each year is taxed at 0%, you can withdraw roughly S$40,000 a year tax-free if you have no other income — up to about S$400,000 over the 10-year withdrawal window. This is why SRS works best when spread out, not taken as a lump sum. The 10-year window starts from your first penalty-free withdrawal on or after the statutory retirement age (currently 63) that applied when you made your first contribution.
Top up via CPF's e-Cashier or the CPF mobile app using their NRIC; the money goes into their Special Account (before 55) or Retirement Account (55 and above) and earns the long-term 4% floor rate. You claim the relief as the contributor, capped at S$8,000 across all family top-ups. One 2025 change to note: if the parent qualifies for the Matched Retirement Savings Scheme (MRSS), the first S$2,000 you top up attracts a dollar-for-dollar government match but no tax relief — only the amount above that S$2,000 counts toward your relief.
For members under 55, nothing changes — RSTU cash top-ups still go into the Special Account and earn the 4% floor rate. For members 55 and above, the Special Account was closed in January 2025, so RSTU top-ups now go straight into the Retirement Account (up to the Enhanced Retirement Sum), which also earns the long-term floor rate and raises future CPF LIFE payouts.
For members turning 55 in 2026 the Full Retirement Sum (FRS) is S$220,400 (twice the Basic Retirement Sum). RSTU top-ups count toward this. You can only withdraw CPF savings above the sum you choose to set aside at 55, which is why RSTU money is genuinely locked for the long term — unlike SRS, which is accessible (with tax/penalty) at any time.