How to get the most out of your Supplementary Retirement Scheme (SRS) acount

This article requires an average reading time of 4 minute 5 seconds. 


Saving for our golden years is something we should prioritise in our income-earning years. However, as most people at this stage also have more immediate financial goals, retirement planning often gets delayed.


That’s where the SRS comes in.


What is SRS?


The SRS is an initiative by the Singapore government to give Singaporeans and residents a pathway to enjoy near-term tangible benefits while they save towards their retirement years.


With SRS, you can enjoy tax savings on your next assessment year. At the same time, your fund can be run by the private sector, SRS complements the Central Provident Fund (CPF) which is meant to provide for your housing and medical needs and for basic living needs after retirement. Unlike the CPF scheme, participation in the SRS is voluntary.


SRS accounts receive dollar-for-dollar tax relief up to $15,300 for Singapore citizens and Singapore PRs and $35,700 for foreigners. In addition, your contributions can be put to work when you use your funds to purchase a range of quality investment instruments.


As an incentive, SRS contributions are eligible for tax relief the following year. Thus, if you do contribute to your SRS account by 31 Dec 2023, you can get tax relief in Year of Assessment 2023 (which is filed in 2024).


How Much Can You Save as Singaporean / Singapore PR?


An illustration of how the SRS helps a Singaporean / Singapore PR save base on annual income of SGD $120,000:

Employment Income Less Personal Reliefs

(Earned Income, CPF, Qualifying Child, Parent, etc.)



  Without SRS Contribution  With SRS Contribution
SRS Contribution  - S$15,300
Total Relief S$30,000 S$45,300 (Including SRS)
Chargeable Income  S$90,000  S$74,700
Total Tax Payable S$4,500 S$2,979
Potential Tax Savings


You save 33% more tax this year.

The above table is for illustration purpose only.



How SRS Makes YourSavings Work Doubly Hard for You


1.The main benefit of SRS contribution is tax-relief.

Based on the illustration, as a Singaporean or PR, you can save $1,521 in taxes each year by contributing at the maximum of $15,300 to SRS. Every dollar put into the SRS account will enable one to reduce the taxable

income by a dollar, subjected to a cap of $15,300 a year.


2. SRS funds can be used for further investments.


Who Benefits the Most from SRS?


More than half of SRS account holders in 2014 were between the ages of 36 and 55. And these are the people who probably earn over S$40,000 a year, the tax savings earned will be significant. The higher the annual income,

the more a person will be able to save in tax when he does SRS contribution.


A Good Scheme but What Is the Downside?


When the funds in the SRS account are not invested, it only generates an interest rate of 0.05%. Over time, the funds in the SRS account will lose value as the return of 0.05% is lesser than Singapore’s inflation rate.


In fact, 1 in 3 people who contribute to their SRS account are not taking advantage of the opportunity to invest their funds and grow their portfolio. So while the SRS is a good scheme, it is important that your funds are invested for the opportunity to earn more favourable returns.


Also, for any early withdrawals before retirement age of 62, all 100% of withdrawal sum will be taxed. In additional, 5% penalty will be applicable on the withdrawal sum as well.



Types of Withdrawals


After age 62, you can withdraw your funds for up to 10 years, and only 50% of each withdrawal is taxable. So, if in a given year you withdraw $40,000 SGD, $20,000 SGD is subject to tax; if you do not have any other personal income, this would be tax-free, as the first $20,000 SGD of personal income in Singapore is not taxable. Please refer to IRAS for full tax rates table.


Best strategy for withdrawal


Currently, resident tax rates begin getting taxed after annual income of $20,000 SGD. This means that, if you do not have any other taxable personal income, you can withdraw up to $40,000 SGD per year tax-free from your SRS account, for 10 years.


Therefore, is to minimise any income tax during those 10 years by spreading the withdrawals out if you do not have any other income or if you have steady other income, or by withdrawing less in the years when you receive additional income.


  Type of Withdrawal Amount Subject to Tax

5% Penalty Imposed?

Penalty-Free withdrawal

Withdrawal on or after prescribed retirement age of 62 (Withdrawal can be spread over 10 years from the date of first penalty-free withdrawal)

50% of withdrawal sum No
Other Withdrawals Early withdrawals before retirement age 62 100% of withdrawal sum Yes


What Can You Invest in Using Your SRS Funds?


Investing your SRS contributions is a great way to grow your retirement savings. One could choose from a wide range of financial products including:

• Bonds

• Singapore Government Securities (SGS)/Singapore Savings Bonds (SSB)

• Fixed Deposits

• Blue Chips Shares / Singapore-based ETF

• Retirement Income policies

• Unit Trusts

• Real Estate Investment Trusts (REITs)

• Annuities


Everyone has different financial goals and retirement needs. At Insuranceguru, our experienced advisers can help you better understand how your SRS monies can be aligned to help you meet your goals.


Also, our advisers can help you develop your wealth strategies whether your goals are to protect, accumulate, manage, grow or distribute your wealth. Working closely with you to understand your financial needs, priorities and even challenges, we aim to be your trusted adviser, who will advise and inform you of what you need to know, even if the truth might be less pleasant to one’s ear.


Insure yourself, protect others.


Like us at our Facebook Page. Request for a Free Life Insurance Quote or Buy your Personal Car Insurance today!


Disclaimer: All information, commentary and statements of opinion contained in this publication are for general information purposes only. They are not intended to be personalized financial or investment advice as they do not take into account your individual circumstances. You are advised to speak to a qualified financial consultant before making any financial decision. This publication should also not be construed as an offer or solicitation to purchase or sell any insurance or non-insurance products including any that may be mentioned here. Whilst we have taken all reasonable efforts to ensure that the material contained in this publication is accurate and informative, and the author of this article do not warrant or guarantee its accuracy, reliability or completeness., its employees, parent, related companies, agents and the author of this article will not be liable for any direct, indirect, incidental or any other type of loss or injury resulting from your use of this content.

Copyright © 2023 All rights reserved. No part of this publication may be reproduced, stored, transmitted in any form of by any means without’s prior written consent.
If you are seeing this article sent through your email from, it is because you had subscribed for it at some point in the past. If you do not wish to receive such ema
ils in the future, you can unsubscribe by clicking here to submit your request. Thank you.


Alex Ang has over a decade of success in financial advisory. Today, he supports an extensive network of long-term clients who appreciate his impeccable service and advice, while leading a team of successful top-tier advisors in the wealth management firm he is working in. The ChFC® accredited advisor’s comprehensive experience and knowledge enable him to serve a wide demographic of clients – from mass-market, to mass-affluent and high-net-worth individuals. One of the top 10 advisors in his firm since 2014, Alex has won numerous awards; Alex’s goal is to nurture the next generation of leaders in the financial planning industry. Always willing to share his knowledge and expertise with his team as well as new advisors, he is also known for his outstanding leadership capabilities. The passionate mentor is adept in identifying talents and guiding them through learning programmes he tailors to their unique personalities. His ability to see the hidden strengths and talents of his mentees, has been key in helping them achieve their fullest potential. Under his tutelage, many of his mentees have achieved successes of their own within short time frames of their own. Alex can be contacted at

You Might Also like
This article requires an average reading time of 2 minute 11 seconds. 
Wanting to be the next Warren Buffett is one thing; actually making even a fraction of the money he makes in a year is quite another. Truth be told, the biggest enemy of an investor is none other than himself. More often than not, it is no one else but yourself who prevents you from making the right investment decisions.
This article requires an average reading time of 1 minute 46 seconds. 
As perhaps the most successful and famous investor of our time, Mr Warren Buffett should know a thing or two about money managment. When he took over the management of Berkshire Hathaway in 1964 until today, the company has an average growth rate of about 18% per annum. $1,000 invested in 1964 wil be worth a staggering $6.4Million today! In comparsion, the amount if invested in an S&P index fund would have grown to about $60,000 in the same period. This speak volumes about his genius in financial management. 
This article requires an average reading time of 3 minute 7 seconds. 

Looking for an investment strategy that works in any market conditions is like searching for the proverbial fountain of youth. Neither exists in reality. The financial market is subjected to too many unknown factors eg the collapse of oil prices that can hurt blue chip stocks like Keppel Corp or a sudden war (God forbids) that may take place in any part of the world; all these events will affect the performance of the stock market. Every kind of investment strategy has its limitations but what are some time-tested investment strategies out there for us to consider? is jointly owned by ALP Rocks Pte Ltd “ALP” and IPP Financial Advisers Pte Ltd “IPPFA”. IPPFA is a Financial Advisory Firm licenced under the Financial Advisers Act and Exempt Insurance Broker. ALP is a Singapore-registered Fintech company certified by Singapore Fintech Association as an InsurTech provider. ALP has been appointed by IPPFA as the administrator of this website.

All insurance quotations on are provided by IPPFA with any financial advisory process to be conducted by a Financial Adviser Representative from IPPFA. Details of IPPFA’s license can be found at