SRS Supplementary Retirement Scheme Singapore 2026

Singapore citizens and PRs may contribute up to S$15,300 a year to the SRS. Foreigners may contribute up to S$35,700 a year. Every dollar contributed reduces your chargeable income in that year by one dollar. Withdrawals from the statutory retirement age attract income tax on only 50% of the amount.

What is the SRS?

The Supplementary Retirement Scheme is a voluntary savings scheme run by the Ministry of Finance and managed by the three local banks (DBS, OCBC, UOB). It sits alongside CPF but is funded entirely by the account holder. Contributions go into an SRS account which can hold cash, approved unit trusts, shares, bonds, fixed deposits, and annuities.

Unlike CPF, there is no employer contribution and no allocation across sub-accounts. The tax advantage comes entirely from deferral: you deduct the contribution now at your current marginal rate, and you pay tax at retirement (typically a lower rate) on only half the amount.

Contribution caps 2026

Residency status Annual cap Monthly equivalent
Singapore citizen or permanent resident S$15,300 S$1,275
Foreigner (EP, S Pass, LTVP+, etc.) S$35,700 S$2,975

Contributions must be from earned or self-employment income in Singapore in the same year. Unused relief cannot be carried forward.

Tax saving on a S$15,300 SRS contribution (citizens and PRs)

The saving depends on your marginal income tax rate. These figures apply after all other personal reliefs and use the 2026 income tax rates.

Contribution Tax relief Saving at 11% marginal Saving at 15% marginal
S$5,000 S$5,000 S$550 S$750
S$10,000 S$10,000 S$1,100 S$1,500
S$15,300 S$15,300 S$1,683 S$2,295

At the maximum S$15,300 contribution, a taxpayer at the 15% marginal rate saves S$2,295 in income tax in the year of contribution. The net cost of the S$15,300 deposit is therefore just S$13,005.

Approved SRS investments

SRS funds can be invested in Singapore Exchange (SGX) listed shares and ETFs, approved Singapore unit trusts, bonds, fixed deposits with SRS operators, and Singapore Government Securities. Returns within the SRS account are not taxed until withdrawal.

SRS funds left as cash earn a nominal interest rate (typically 0.05% to 0.10% per annum). Most account holders invest the balance rather than leaving it in cash.

Withdrawal rules and the 50% concession

The statutory retirement age for SRS purposes is 63 for accounts opened before 1 July 2022 and 65 for accounts opened from that date onwards. From that age, withdrawals are taxed on only 50% of the amount withdrawn. Spreading withdrawals over multiple years can reduce the effective rate further, especially if total income in retirement falls below the zero-rate band.

Early withdrawal penalty: withdrawing before the statutory retirement age attracts a 5% penalty on the amount withdrawn, and the full (100%) amount is included in chargeable income in that year, not just 50%.

SRS versus CPF top-ups

CPF top-ups (Retirement Sum Topping-Up Scheme and Voluntary Contribution) also give tax relief but are locked until CPF withdrawal age and earn CPF interest rates (4% on the SA). SRS funds earn investment returns but the investor bears market risk. The two schemes complement each other: CPF for a stable, insured base; SRS for flexibility in how and when to invest.

Frequently asked questions

What is the SRS contribution cap in 2026?

Singapore citizens and permanent residents may contribute up to S$15,300 per year. Foreigners may contribute up to S$35,700 per year. Contributions are voluntary and must be from earned income.

How does SRS reduce my income tax?

Every dollar contributed to SRS reduces your chargeable income by one dollar in the year of contribution. The tax saving depends on your marginal rate: at 7% the saving is S$1,071 on S$15,300, at 11.5% it is S$1,760, and at 15% it is S$2,295.

When can I withdraw from SRS without penalty?

The statutory retirement age for SRS withdrawals is 63 for accounts opened before 1 July 2022, and 65 for accounts opened from that date onwards. At that point you pay income tax on only 50% of the amount withdrawn. Early withdrawal attracts a 5% penalty plus full income tax on the withdrawal.

Is SRS separate from CPF?

Yes. CPF is a mandatory scheme funded by contributions from both employee and employer. SRS is a voluntary top-up scheme funded only by the account holder. They are held at different institutions and have different withdrawal rules.

Sources: Ministry of Finance, IRAS, CPF Board. Contribution caps and tax rates for Year of Assessment 2026. Last updated 2026-11-04.