An SRS account, short for Supplementary Retirement Scheme, lets you set aside money for retirement and get income tax relief on it now. Singapore Citizens and Permanent Residents can contribute up to S$15,300 a year. You pay tax on only half of it when you withdraw at retirement age.
It is voluntary and separate from CPF. With the 31 December deadline for 2026 relief approaching, here is how the caps, relief and withdrawal rules work, with the numbers.
Who Can Contribute to an SRS Account, and How Much
According to the Ministry of Finance (MOF), the annual SRS contribution caps, unchanged since 1 January 2016, are:
- $15,300 for Singapore Citizens and Permanent Residents
- $35,700 for foreigners
You can contribute any amount up to the cap, at any time in the year. To count for a year, contributions must be made by 31 December, or by any earlier date your SRS operator sets.
You need an SRS account with an SRS operator. MAS lists DBS/POSB, OCBC and UOB for applying for government securities with SRS funds.
How the Tax Relief Works
Every dollar you contribute reduces your taxable income for the following Year of Assessment (YA). So contributions made in 2026 reduce your tax for YA 2027.
Three limits apply, according to IRAS:
- Relief equals what you actually contributed, up to the annual cap.
- All your personal income tax reliefs together are capped at $80,000 a year. SRS relief counts towards that cap.
- There are no refunds of contributions. If you withdraw money in the same year you contributed it, relief is not given on the amount withdrawn.
The maths, using IRAS resident tax rates (YA 2024 onwards)
The relief is worth your top marginal tax rate multiplied by what you contribute, as long as the contribution keeps you in the same band. Illustration only:
| Chargeable income before SRS | Top marginal rate | Tax saved by contributing $15,300 |
|---|---|---|
| $60,000 | 7% | about $1,071 |
| $100,000 | 11.5% | about $1,760 |
| $180,000 | 18% | about $2,754 |
If your contribution would push your income into a lower band, the saving is a blend of the two rates. If your chargeable income is $20,000 or less, it is taxed at 0% and SRS relief saves you nothing now.
The short version: SRS gives you tax relief at your top rate today. In return, the money is locked until your retirement age, and half of each withdrawal is taxed later, usually at a lower rate if you have little other income then.
When You Can Withdraw Without a Penalty
Penalty-free withdrawals start at the statutory retirement age in force when you made your first SRS contribution, not today’s age.
The Ministry of Manpower (MOM) raised the minimum retirement age to 64 from 1 July 2026. IRAS confirms that 64 is the SRS retirement age for first contributions from 1 July 2026. It also says later increases, for example to 65, will not affect people who have already started contributing.
If you made your first contribution before 1 July 2026, your age is the one that applied at that time. The retirement age was 62 until MOM raised it to 63 on 1 July 2022. So under IRAS’s rule, the age works out as follows:
- First contribution before 1 July 2022: 62.
- First contribution from 1 July 2022 to 30 June 2026: 63.
- First contribution from 1 July 2026: 64.
IRAS’s page states the 64 and uses 62 in its worked examples. It does not list the 63 band, which follows from its rule and MOM’s dates. Your SRS operator can confirm the age on your account.
How Withdrawals Are Taxed
From your retirement age, IRAS taxes only 50% of each withdrawal. There are two more rules:
- You can spread withdrawals over a 10-year period, starting from your first penalty-free withdrawal.
- Anything left in the account after those 10 years is treated as withdrawn in one go, with 50% of it taxable. Life annuities are an exception.
Illustration only: IRAS notes that if you have no other taxable income, you can withdraw up to $40,000 a year with no tax payable. Only $20,000 of it is taxable, and the first $20,000 of chargeable income is taxed at 0%.
Over the 10-year window, that comes to $400,000 withdrawn with no income tax, if you have no other taxable income. Other income, such as rental income or part-time work, would use up some of that 0% band.
Withdrawing early
Before your retirement age, the whole withdrawal is taxable and a 5% penalty applies. IRAS lists exceptions for death, medical grounds and bankruptcy. Foreigners can make a full withdrawal subject to conditions, including holding the account for at least 10 years.
What You Can Invest SRS Money In
Cash sitting in an SRS account usually earns little, so many members invest it. MOF lists permitted investments including shares, unit trusts, ETFs, bonds, fixed deposits and certain insurance products, subject to limits. Direct property investment is not allowed.
SRS funds can also be used for Singapore Savings Bonds and T-bills through your operator’s internet banking. Our guide to T-bills, Savings Bonds and fixed deposits compares them, and the December 2026 Savings Bond is open until 25 November. Singapore-dollar SRS money placed as deposits with a bank is covered by deposit insurance.
Investments other than deposits and government securities can rise or fall in value. Returns are potentially higher but not guaranteed.
Is SRS Worth It for You?
SRS tends to make the most sense when three things are true:
- your marginal tax rate is meaningful today
- you are confident you will not need the money before your retirement age
- you expect a fairly low taxable income in retirement
It makes less sense if your income is low enough that the relief is small. It also makes less sense if there is a real chance you will need the money early, because the 5% penalty and full taxation can more than cancel out the relief.
CPF cash top-ups are the other common year-end relief. See our guides to top-ups before 55 and Retirement Account top-ups from 55.
What To Do Next
- Use our SRS tax calculator to estimate the tax you save now and pay later.
- Check your expected 2026 chargeable income and work out your marginal rate using the IRAS tax rates table, or our income tax calculator.
- Check your total reliefs against the $80,000 cap before contributing.
- Find your SRS operator’s year-end cut-off, which may be earlier than 31 December.
- If you already have an SRS account, confirm your statutory retirement age with your operator.
- For advice on whether SRS fits your plans, speak to a tax professional.
