SRS: Tax Saved Now vs Tax on Withdrawal

Income tax an SRS contribution saves this year, the tax when you take it out later, and what spreading does.

This Year

You are aYearly SRS contribution limit set by IRAS. Relief needs you to be a tax resident for the year.

Chargeable income for 2026

Income after expenses and your other reliefs, before the SRS relief. Taxed in YA 2027. The income tax calculator can work it out.

SRS contribution this year

Must reach your SRS account by 31 December 2026 to count for YA 2027. Contributions cannot be refunded.

Later, When You Withdraw

Years until you start withdrawing

years

Penalty-free withdrawals start at your prescribed retirement age: 64 if your first SRS contribution was on or after 1 July 2026. Earlier contributors keep the lower age that applied then.

Assumed return a year

Illustration, not guaranteed. Uninvested SRS cash earns very little; investments can fall as well as rise.

Spread withdrawals over

years

Between 1 and 10. Whatever is left after 10 years is treated as withdrawn.

Other taxable income a year then

Chargeable income in each withdrawal year apart from SRS, such as rent or part-time pay after reliefs.

Other SRS money withdrawn over the same years (optional)

Your other SRS savings as they might stand at withdrawal. This year's contribution is then taxed on top of them.

Net tax benefit (estimate)–

Tax saved now: –
Tax on withdrawals, in total: –
Net benefit (saved minus paid later): –

–

The Working

SRS relief claimed: –
Tax before and after the relief: –
Your top tax rate now: –
Balance at first withdrawal (illustration): –
Withdrawn each year: –
Taxable each year (50%): –
Tax each withdrawal year: –

If Withdrawn Early

Tax on the whole balance, added to today's income: –
Penalty (5%): –
Net benefit if withdrawn early in one go: –

The Effect Of Spreading

Spread over	Withdrawn a year	Taxable a year	Tax a year	Tax in total	Net benefit

With no other income, up to $40,000 a year can be withdrawn tax-free, because only half is taxed and the first $20,000 of chargeable income is taxed at 0%.

How The SRS Trade-Off Works

Money you put into the Supplementary Retirement Scheme is deducted from your chargeable income for the year, so you save tax at your top rate. The catch comes later: when you take the money out on or after your prescribed retirement age, half of each withdrawal is added to your income for that year and taxed.

The deal is usually best for people with a high tax rate now and low taxable income in retirement. Because only half is taxed and the first $20,000 of chargeable income is taxed at 0%, someone with no other income can take out up to $40,000 a year without paying tax. Spreading withdrawals over the full 10 years keeps more of each year's taxable part in the low bands.

Taking money out before the retirement age reverses most of the benefit: the whole amount is taxed and a 5% penalty is added. The growth figures here are an illustration you choose, not a forecast, and the comparison assumes you would have earned the same return investing the money outside SRS.

Assumptions And Limits

For Singapore tax residents, using the resident tax rates that apply from Year of Assessment 2024 onwards, which include YA 2027 (SRS contributions made in 2026). The same rates are used for the withdrawal years, though they may change. One-off tax rebates are ignored.
Relief is limited to $15,300 a year for citizens and PRs and $35,700 for foreigners, and counts towards the $80,000 cap on all personal reliefs together, which this tool does not test.
The return is your own illustration, not guaranteed. Cash left uninvested in an SRS account earns very little, and investments can lose money. The balance grows once a year until the first withdrawal, then is split into equal yearly withdrawals with no further growth.
On or after your prescribed retirement age, 50% of each withdrawal is taxed and withdrawals can be spread over up to 10 years; anything left after 10 years is treated as withdrawn. Earlier withdrawals are taxed in full with a 5% penalty, except on death, medical grounds, bankruptcy or a foreigner's full withdrawal under conditions.
Dollars today and dollars decades from now are added as if equal. Because the tax saving comes first and the tax on withdrawal comes later, the real benefit is a little larger than shown when the net figure is positive.

This calculator was built with AI tools from published rules and may contain errors. Results are estimates for education only, not financial advice and not a guarantee. Rates and rules change; confirm with the official source before you act. Your figures stay in your browser: nothing you type is sent to us.