Singaporean's Guide to Supplementary Retirement Scheme (SRS): Tax Relief, Promotions, Investment Options etc.

Singaporean's Guide to Supplementary Retirement Scheme (SRS): Tax Relief, Promotions, Investment Options etc.

Ming Feng

If there is anything more complicated than Pythagoras’ theorem, it will be Singapore’s Central Provident Fund (CPF) system.

To further complicate things there’s also this thing called the Supplementary Retirement Scheme (SRS) which complements your CPF retirement savings.

Source: giphy

What Is Supplementary Retirement Scheme (SRS)?

  • The Supplementary Retirement Scheme (SRS) is a voluntary scheme
  • It aims to encourage Singaporeans to save for retirement, over and above their CPF savings
  • You can top up their SRS account as many times as they want

TL;DR: Who should you open your SRS account with?

In this article, we address some of the commonly asked questions. We try to make it less boring for you.

Should we fail to do so, it is too important to not understand SRS!

Pros of Supplementary Retirement Scheme (SRS) – Pay lesser income tax!

To encourage Singaporeans to do so, contributing to SRS comes with many benefits.

  1. Contributions to SRS are eligible for tax relief.
  2. Investment returns are tax-free before withdrawal.
  3. Only 50% of the withdrawals from SRS are taxable at retirement.

Contribute to the SRS account and get the same amount of tax relief!

We show you how it’s done:


  • A Singaporean with employment income of $102,000
  • He enjoys Personal Tax Reliefs of $31,500 (Earned Income, CPF, Qualifying Child, Parent, etc)
Employment Income$102,000
Less: Personal Reliefs
(Earned Income, CPF, Qualifying Child, Parent etc.)
Without SRS Contribution With SRS Contribution
SRS Contribution-S$15,300
Total Relief$31,500$46,800
Chargeable Income$70,500$55,200
Total Tax to pay$2,685$1,614

As we can see, the Potential Tax Savings is $1,071.

Account Opening Promotion for Supplementary Retirement Scheme (SRS): OCBC vs DBS vs UOB

To encourage the opening of SRS, each of the 3 banks came out with their promotions.

Promotion$50 worth of Al-Futtaim Retail Asia Gift Vouchers

(Robinsons, Marks & Spencer and 16 other brands)
$50 cash and an additional of $30/$20Christmas Log Cake from Java+
Promotion ends31 December 201815 December 201821 December 2018
RequirementContribute $10,000 within 7 days of account openingOpening account online ($50)

Contribute $15,300 ($30)

Contribute $10,000 - $15,299.99 ($20)
Contribute a minimum of $10,000 upon opening of account
Limited to First 2,000 paxFirst 5,000 pax-

SRS Account Investment and Insurance Promotion: DBS vs UOB

At the moment, OCBC does not have any other promotion other than the one that comes with account opening.

As for DBS and UOB, here are some promotions to encourage their account holders to invest or get themselves insured.

SRS Investment PromotionsSpecial discounted sales charge for selected Unit TrustsInvest in Unit Trust/ Insurance:

$10,000 - $19,999: Traditional English Afternoon Tea for 2 at Lobby Lounge

$20,000 - $29,999: High Tea Buffet for 2 at Marriott Cafe

$30,000 and above: Buffet Lunch for 2 at Marriott Cafe
SRS Insurance Promotion$100 Cash Reward when one sign up for:

RetireReady Plus - Single Premium

ReadyBuilder - Single Premium

(Minimum premium of S$10,000)

What can I do with my SRS account? – SRS Investment Options

“Top up SRS account then what? Can do what?” – Le Random Coffeeshop Uncle

The interest rate on balances in the SRS Account which are not invested is currently at 0.05% per annum, as of October 2012.

Editor’s Note: 0.05% interest rate? That’s lame!

In order for SRS to be a great retirement tool, one needs to be able to invest the money in their SRS account. Here are some of the possible investment options of for Singaporeans:

  • Single premium products (recurrent single premium products, both annuity and non-annuity plans)
  • Life cover (including total and permanent disability benefits)
  • Bonds
  • Unit Trusts
  • Fixed Deposits
  • Shares

Here are some investment strategies for SRS funds by the Seedly Personal Finance Community.

You might want to refer to our sorting on investment products based on risks to better decide the product to invest in.

Read more: Best Investments In Singapore That Caters To Every Risk Profile, For Short, Medium and Long-Term Investors 

SRS vs CPF Special Account (SA)

Both the SRS and CPF SA are long-term investments for Singaporeans. But they do have their differences:

 CPF Special Account
Supplementary Retirement Scheme
Tax Reliefs CapS$7,000/yearS$15,300/year
Interest Rate4%0.05%
WithdrawalAge 55, once you hit the retirement sum, you can withdraw the excess.Money is SRS is more liquid. One can withdraw it anytime.

(5% tax if before retirement age)

Further reading: How to be eligible for Supplementary Retirement Scheme (SRS) Account?

There are only 2 criteria when it comes to setting up and contribute to your SRS account.

  • One needs to be 18 years old and above
  • One must not have an existing SRS account with any other bank.
  •  Not an undischarged bankrupt
  • Mentally sound and capable of managing yourself

One can open an SRS account with any of the 3 SRS operators, DBS, UOB or OCBC.

All you need to bring along is your Identity Card and a Completed Declaration Form (for foreigners).

What is the maximum yearly SRS contribution cap?

The yearly maximum SRS contribution cap for Singaporean citizens and PRs differs from that of foreigners.

The yearly maximum SRS contributions are as such:

  • Singapore Citizens/ Singapore PRs: $15,300 ( year 2016 onwards)
  • Foreigners: $35,700 (year 2016 onwards)

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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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