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SRS Account (Supplementary Retirement Scheme)

SRS Account (Supplementary Retirement Scheme)

Singapore’s voluntary retirement savings scheme giving you immediate tax relief today while building an investable retirement nest egg for tomorrow.

What is an SRS Account?

The Supplementary Retirement Scheme (SRS) is a voluntary government savings scheme in Singapore. Contributions qualify for dollar-for-dollar income tax relief. SRS funds can be invested in SGX stocks, S-REITs, ETFs, unit trusts, and bonds. Only 50% of SRS withdrawals at retirement are taxable — making it highly tax-efficient for building retirement wealth.

Annual Cap (Citizens/PRs)
S$15,300
Annual Cap (Foreigners)
S$35,700
Tax on Withdrawal
50% taxable only
Available Banks
DBS, OCBC, UOB

Table of Contents

  1. 1. What Is the SRS Account?
  2. 2. How SRS Tax Relief Works
  3. 3. What Can You Invest in With SRS Funds?
  4. 4. SRS Withdrawal Rules Explained
  5. 5. SRS vs CPF: Key Differences
  6. 6. Frequently Asked Questions

What Is the SRS Account?

The Supplementary Retirement Scheme (SRS) was launched in 2001 as a complement to CPF. While CPF contributions are mandatory, SRS is entirely voluntary — you choose how much to contribute each year up to the annual cap, and contributions immediately reduce your chargeable income for tax purposes.

SRS accounts are opened at DBS, OCBC, or UOB (only one account allowed across all banks). Unlike CPF, SRS funds are not ring-fenced for housing or healthcare — they are purely a retirement accumulation vehicle. Early withdrawals before retirement age (currently 63) trigger a 5% penalty plus full taxation of the amount withdrawn.

Current caps: S$15,300/year for Singapore Citizens and PRs; S$35,700/year for foreigners. These are maximums — you can contribute any amount below these limits in any given year.

How SRS Tax Relief Works

Dollar-for-dollar: every S$1 contributed reduces chargeable income by S$1. Your tax saving equals your marginal income tax rate × SRS contribution amount.

Example: chargeable income S$120,000 (marginal rate 15%), maximum SRS contribution S$15,300 → chargeable income drops to S$104,700 → tax saving of approximately S$2,295. At the 20–22% bracket, savings are even more significant.

The relief is immediate — claimed in your income tax return for the year of contribution. DBS, OCBC, and UOB report your SRS contributions directly to IRAS. Pro tip: contribute before 31 December each year to maximise the current year’s relief.

What Can You Invest in With SRS Funds?

SRS funds left uninvested earn only 0.05% p.a. — by design, to encourage investing. MAS allows SRS funds in: SGX-listed equities and S-REITs (DBS, OCBC, CICT, MLT etc.); ETFs listed on SGX including STI ETF (ES3, G3B) and S-REIT ETFs; Unit trusts and funds via Endowus, Lion Global, Fidelity etc.; Singapore Government Securities (SSBs, SGS bonds); and SRS-linked fixed deposits at DBS, OCBC, UOB.

Endowus is particularly popular for SRS investing, offering institutional-class fund portfolios that are otherwise inaccessible to retail investors. See our Singapore REIT ETF guide for SRS-eligible S-REIT ETF options.

SRS Withdrawal Rules Explained

At retirement age (63+): Only 50% of each withdrawal is taxable as income. This is the core advantage — you contributed with 100% tax deduction; you withdraw with only 50% taxable. With careful withdrawal management spread over the 10-year drawdown window, your effective tax rate at retirement can be very low or zero.

Early withdrawal (before 63): 5% penalty applies plus the full 100% amount becomes taxable. Avoid this unless in financial distress — it eliminates most of the tax benefit.

Strategy: Spread withdrawals over the 10-year window starting from first withdrawal to stay within tax-exempt personal relief bands — potentially receiving SRS income completely tax-free in retirement.

SRS vs CPF: Key Differences

Feature SRS CPF OA/SA
Mandatory? Voluntary Mandatory
Contribution Cap S$15,300 (Citizens/PRs) Based on salary
Base Interest Rate 0.05% p.a. (uninvested) 2.5% OA / 4.0% SA
Investment Options Stocks, ETFs, funds, SSBs CPFIS approved list
Use for Housing? No OA: Yes (HDB, private)

Frequently Asked Questions

Is the SRS worth it for someone earning S$80,000 a year?
At S$80,000 chargeable income (marginal rate 11.5%), contributing S$15,300 saves approximately S$1,760 in taxes annually. Over 20 years of contributions, this compounds significantly. Plus SRS investments grow tax-deferred. For most Singapore professionals earning above S$60,000, maximising SRS is very worthwhile.
Can I have an SRS account at more than one bank?
No — only one SRS account per person across all banks. Choose based on which platform has the investment products you want: DBS, OCBC, and UOB each offer different SRS investment options.
Can I use Endowus with my SRS account?
Yes. Endowus is one of the most popular platforms for SRS investing, offering access to institutional-class fund portfolios and CPF OA investing. You link your SRS account to Endowus and invest in their income, core, or factor portfolios. Check the Endowus referral code page for current promotions.
Does SRS investment income get taxed annually?
No. Income earned within your SRS account — dividends, interest, capital gains — is not taxed annually. Taxes only arise upon withdrawal. This tax-deferred compounding is one of the most powerful aspects of SRS over your working years.
What happens to my SRS account if I leave Singapore permanently?
You may withdraw your SRS funds with a 5% early withdrawal penalty plus 50% taxable (if after retirement age) or 100% taxable (if before). Consult a tax advisor given your specific residency situation.

Invest Your SRS Funds

Don’t leave your SRS earning 0.05%. Put it to work with Singapore’s leading SRS-compatible platforms.

Endowus SRS Investing
Syfe SRS Portfolios