SRS Investment Options Singapore — SRS (Supplementary Retirement Scheme) investment options in Singapore allow account holders to invest their SRS contributions in a wide range of assets beyond the default cash interest rate of 0.05% p.a. Eligible investments include Singapore-listed stocks, ETFs, REITs, unit trusts, endowment plans, annuities, and fixed deposits — all designed to help SRS members grow their retirement savings tax-efficiently.
This page is for informational purposes only and does not constitute financial advice. Figures are accurate as at Q1 2026.
Table of Contents
- What Is the SRS?
- Full List of SRS Investment Options
- Tax Benefits Explained
- Best SRS Investment Strategies
- SRS vs CPF: Key Differences
- Related Tools
- FAQ
What Is the SRS and How Does It Work?
The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme by the Singapore government that complements CPF by giving working adults a tax-advantaged way to save for retirement. SRS contributions are made to a dedicated account at one of three banks — DBS, OCBC, or UOB — and are eligible for dollar-for-dollar income tax deductions up to the annual contribution cap.
For 2026, the annual SRS contribution cap is S$15,300 for Singapore Citizens and PRs, and S$35,700 for foreigners. Contributions are deductible against chargeable income. A Singaporean in the 11.5% tax bracket saves approximately S$1,760 in tax for every S$15,300 contributed. Use our SRS Tax Savings Calculator to estimate your personal tax savings.
Full List of SRS Investment Options in Singapore
SRS funds earn only 0.05% p.a. as cash. To grow your SRS meaningfully, you must invest. Here are all the investment options available through SRS:
| Asset Class | Examples | Risk Level |
|---|---|---|
| Singapore Stocks and REITs | SGX-listed equities, S-REITs | Medium to High |
| ETFs (SGX-listed) | CSPX, STI ETF, Nikko AM REIT ETF | Medium |
| Unit Trusts and Managed Funds | Via SRS operator bank platforms | Low to High |
| Singapore Savings Bonds (SSB) | Monthly issuances, 1–10 year | Very Low |
| Fixed Deposits | At DBS, OCBC, or UOB (SRS) | Very Low |
| Annuities | Private annuities from insurers | Very Low |
| Endowment Plans | Insurance savings plans | Low |
The most popular SRS investment choices are SGX-listed ETFs (broad market or dividend-focused), Singapore dividend stocks, and S-REITs for passive income. Explore our Singapore REIT ETF guide for top SRS-eligible ETFs.
Three Layers of Tax Benefits with SRS
SRS investing has three layers of tax advantage: (1) Tax deduction on contribution — contributions reduce your taxable income in the year they are made; (2) Tax-free compounding — investment returns within SRS (capital gains, dividends reinvested) accumulate without annual tax; (3) 50% withdrawal exemption — at statutory retirement age, only 50% of SRS withdrawals are included in taxable income, spread over up to 10 years to minimise the annual tax impact.
This combination makes SRS highly effective for Singaporeans in the 11.5% to 22% income tax brackets. For those in lower brackets, the tax-free compounding alone justifies SRS investing over a long horizon. Calculate your personalised tax savings using our SRS Tax Savings Calculator.
Best SRS Investment Strategies for Singapore Investors
The optimal SRS strategy depends on your time horizon and risk tolerance. Three common approaches:
- Passive ETF strategy: Invest 100% in a diversified, low-cost ETF (e.g., the Infinity US 500 Fund or iShares Core MSCI World ETF) for broad market exposure. Reinvest dividends for compounding. Best for investors 10 or more years from retirement.
- Income strategy: Invest in Singapore dividend stocks and S-REITs for regular income within SRS. Use our Dividend Portfolio Calculator to model yield scenarios. Best for investors closer to retirement who want to begin drawing income.
- Conservative strategy: Allocate SRS funds to Singapore Savings Bonds (SSB) and fixed deposits for capital preservation with better-than-cash returns. Best for investors within 5 years of retirement.
The single most important rule: do not leave SRS funds in cash at 0.05% p.a. Even low-risk SSBs at approximately 2.5–3% p.a. are materially better than idle SRS cash. Use our Retirement Planning Calculator to integrate SRS projections into your full retirement income plan.
Frequently Asked Questions: SRS Investment Options Singapore
What can I invest my SRS money in?
SRS funds can be invested in SGX-listed stocks, ETFs, REITs, unit trusts, Singapore Savings Bonds, fixed deposits, endowment plans, and annuities. The most popular options are SGX-listed ETFs and dividend stocks for long-term growth.
How much can I contribute to SRS in 2026?
The annual SRS contribution cap for 2026 is S$15,300 for Singapore Citizens and Permanent Residents, and S$35,700 for foreigners. All contributions are eligible for income tax deductions in the year they are made.
What is the tax benefit of investing through SRS?
SRS contributions reduce your taxable income. Investment returns compound tax-free within SRS. At withdrawal from statutory retirement age, only 50% of SRS withdrawals are taxable, and you can spread them over up to 10 years.
Can I invest SRS funds in REITs?
Yes. SGX-listed REITs are eligible SRS investments. Investing SRS funds in Singapore REITs combines the tax advantages of SRS with the passive income from REIT distributions, which accumulate tax-free within SRS until withdrawal.
What happens to my SRS if I withdraw early?
If you withdraw from SRS before statutory retirement age (62 for those born before 1962), 100% of the withdrawal is included in taxable income (not the usual 50%), and a 5% penalty applies on the withdrawal amount. Early withdrawal should be avoided except in exceptional circumstances.
Explore More Singapore Investing Guides
Deepen your knowledge with our free calculators and guides on S-REITs, CPF, ETFs, and retirement planning — all tailored for Singapore investors.