Why You Should Top Up $1 Into Your Supplementary Retirement Scheme (SRS) Account
 
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Why You Should Top Up $1 Into Your Supplementary Retirement Scheme (SRS) Account

Rebecca Liew
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Been thinking ’bout retirement? Nope?

Shiba guilty smile
Source: tenor

Worry not, because I (unfortunately) fall in the same camp. But as insurance ads often remind us, it’s never too late to start. 

Enter: the Supplementary Retirement Scheme (SRS), which was introduced in 2001 to supplement your CPF retirement savings.

While it works on a voluntary basis, topping up your SRS essentially means you’re guaranteed your withdrawal amount at the current statutory retirement age of 62 – no matter if this is adjusted to, say, 65 years old several years down the road.

On that, here’s everything to know about SRS, and where it stands against the CPF Special Account (SA).

SRS Comic

SRS Comic Benefits

SRS Comic Cons

We’ve so far laid out the pros and cons of SRS, but how does it fare against planting your money in CPF SA – or a savings account?

 Supplementary Retirement Scheme (SRS)Special Account (CPF SA)Cash (Savings Account)
Interest Rate0.05% p.a (savings)

6-7% p.a (invest)
4-5% p.a0.05 to 2% p.a
Yearly Contribution Cap$15,300 (personal)$7k (personal)

$7k (family member)
-
Tax deductibleYesYesNo
Withdrawal Conditions62 years old (Retirement age)

If before, 5% fee
65 years old (default)

55 years old (if you have enough above basic retirement sum)
Anytime
How To StartOpen with DBS, OCBC, or UOBAutomatically enrolled for Citizens or PRYour savings account

As you can see, it really comes down to what you’re looking for in retirement (I know, what an annoyingly PC statement – but whatchu want?).

It doesn’t take much effort to supplement your CPF savings, though.

Here’s how starting your SRS with as little as a dollar could set you up for an earlier withdrawal.

Setting Up Your SRS Account

It’s an easy three-step process to kickstart your account:

  • Login to your iBanking account
  • Under Apply, click on Supplementary Retirement Scheme (SRS) 

Open SRS Step 1

  • Transfer a dollar to your newly set-up SRS account.

Step 3 Open SRS

You’re all set!

Want more? We’ve covered the merits of an SRS account in this guide.


Would you set up an SRS account, or do you reckon your CPF SA savings would be sufficient for retirement? Tell us on our Facebook page! 

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About Rebecca Liew
Lactose-intolerant, but also BS-intolerant. Having written for the likes of Marina Bay Sands and Time Out, I now spend my days saving up for my stationery shop retirement dream.
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