SRS Investment Options

In this article, let’s us re-cap what is SRS and the various SRS approved investment options.

What is SRS?

Supplementary Retirement Scheme (SRS) is part of the Singapore government’s multi-pronged strategy to address the financial needs of a greying population by helping people to save more for their old age.

In short, SRS is a Voluntary Tax Deferral Scheme by the government. Contributions to SRS are eligible for tax relief.  

As a result, the tax saving through the SRS scheme can go into funding the retirement plan. In other words,  It’s designed to encourage you to save more for your retirement. 

For example, if your tax bracket is at 15% and you contribute S$15,300 to SRS, your Personal Income Tax is reduced by S$2,295 instantly for that year. And that S$15,300 will go into your retirement planning fund. 

Now, let’s take a look at the key facts here.

1. SRS contribution is eligible for tax relief
  • Yearly limit on SRS contribution for tax relief is S$15,300 (Citizen & PR) / S$35,700 (Foreigner).
  • Subject to a maximum of S$80,000 for all tax reliefs claimed.
2. 50% tax concession at withdrawal after legal retirement age 
  • This means that only 50% of the withdrawals are taxable after your legal retirement age (prevailing statutory retirement age at the time of first SRS contribution, currently age 62).
  • However, if withdrawal is made before reaching the legal retirement age, the withdrawal amount is taxable in full and subject to a 5% penalty.
  • Withdrawal includes SRS contribution and investment returns accumulated over the years.
3. 10-Year Withdrawal Period
  • You can spread out the withdrawal up to 10 years from the date of your first penalty-free withdrawal
  • The remaining balance in the SRS account will be deemed to be withdrawn immediately after the end of the 10-year withdrawal period. 50% of such balance is subject to tax in the following year.
  • For investments in life annuities insurance policy, the 10-year withdrawal period does not apply. So long as you continue to receive your annuity streams in perpetuity, 50% of the annual stream will be subject to tax.

What are the SRS Investment Options?


According to the statistic published by MOF, 26% of the SRS monies sits in cash. That is to say, many may not be aware of how they can enhance the return of their SRS monies. 

SRS accounts interest rate is only 0.05% p.a. across all 3 SRS Account operators: DBS, OCBS & UOB. Thus, the value of monies idling in the account will be eroded over the years by inflation if you don’t invest.

You may use your SRS monies to purchase or invest in a range of approved financial products below:

1. SRS Investment option Group 1: Guaranteed Return Only Products. 
2. SRS Investment options Group 2: Guaranteed Return + Non-Guaranteed Return Products. 
3. SRS Investment options Group 3: Non-Guaranteed Return Only Products. 
SRS Investment options

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5 things you need to know about SRS

SRS investment
for more information: Supplementary Retirement Scheme

This page Is published for general information only and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person.

The information contained in this webpage, including any data, projections and underlying assumptions are based upon certain assumptions, and analysis of information available as at the date of the webpage. 

Please refer to Important Info / disclaimer here.

Date: 26th Nov 2021

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