By MoneyBees
Voluntary tax-deferred retirement savings. Cash contributions reduce taxable income dollar-for-dollar (cap S$15,300/yr for Singaporeans, S$35,700 for foreigners). Withdrawals from your penalty-free age (62, 63 or 64, set by when you first contributed) are taxed on only 50% of the amount.
The Supplementary Retirement Scheme is a voluntary, tax-deferred savings scheme run by the government and administered through DBS, OCBC, and UOB. You deposit cash; the contribution reduces your taxable income for that Year of Assessment.
Money in SRS can be invested in shares, unit trusts, ETFs, fixed deposits, single-premium insurance, and Singapore Government Securities. Returns within the SRS account are not taxed.
From the statutory retirement age in force when you made your first contribution (62 before 1 Jul 2022, 63 from then to 30 Jun 2026, 64 from 1 Jul 2026), withdrawals are taxed on only 50% of the amount. The other 50% is tax-free. Spread withdrawals across up to 10 years to keep your taxable amount in low bands.
Singapore Citizens and PRs: S$15,300 per year.
Foreigners: S$35,700 per year.
Caps are calendar-year. They do not follow the tax year. You must contribute by 31 December for the relief to count toward that Year of Assessment.
Take a Singapore Citizen earning S$120,000 chargeable income. Their marginal tax rate is 15%.
Contributing the maximum S$15,300 to SRS reduces chargeable income to S$104,700, saving them S$2,295 in income tax that year (15% × S$15,300).
Over a 30-year working life, repeating this annual contribution at 15% marginal rate saves S$68,850 in tax, before counting investment growth on the SRS balance.
Don't leave SRS in cash. It earns the bank's default deposit rate (~0.05%). Invest into a diversified portfolio or you'll lose to inflation.
Don't withdraw before your penalty-free age (62, 63 or 64, set by when you first contributed). Early withdrawals are taxed on 100% of the amount, plus a 5% penalty.
Don't over-contribute past the cap. The excess earns no tax relief, which defeats the entire purpose.
S$15,300/year for Singapore Citizens and PRs. S$35,700/year for foreigners. Contributions must clear by 31 December to count toward that calendar year's tax assessment.
From the statutory retirement age in force when you made your first SRS contribution: 62 before 1 Jul 2022, 63 from then to 30 Jun 2026, and 64 from 1 Jul 2026. Withdrawals are taxed on only 50% of the amount, spread across up to 10 years. Early withdrawals before that age are taxed on 100% of the amount plus a 5% penalty.
Yes, into approved instruments: shares, ETFs, unit trusts, fixed deposits, bonds, Singapore Government Securities, and single-premium insurance. SRS funds left in cash earn the bank's default deposit rate (~0.05%), which defeats the purpose. Robo-advisors (Endowus, StashAway, Syfe) accept SRS deposits for diversified portfolios.
No, they're separate. SRS gives its own tax relief on top of CPF contribution relief and the RSTU top-up reliefs. All reliefs together are capped at S$80,000 per Year of Assessment.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).