Supplementary Retirement Scheme (SRS)

The Supplementary Retirement Scheme (SRS) was established on 1st April 2001, to complement our Central Provident Fund (CPF) savings. While our CPF savings are often used for housing, education and medical payments, SRS is a tax-incentivised, voluntary form of savings strictly meant for retirement.

SRS is open to all Singaporeans, Singapore Permanent Residents (SPRs) and foreigners, who are at least 18 years of age, and not undischarged bankrupts or of unsound mind.

You can choose to stop the SRS contribution or make withdrawal from the SRS Account anytime. However, the intention of SRS is for long term savings and penalty is in place to discourage premature withdrawal from your SRS account. If you withdraw from your SRS account before the prevailing statutory retirement age, 100% of the withdrawal amount is taxable and there will be a penalty of 5%. However, if you withdraw from your SRS account on or after the prevailing statutory retirement age, only 50% of the amount drawn will be subject to tax. You may also spread your withdrawals over a period of up to 10 years, to meet your financial needs. Spreading out your withdrawals will generally result in greater tax savings.

An SRS account must first be opened with an approved bank. Every dollar that is voluntarily contributed in cash will result in the same amount of tax relief.

Yearly Maximum SRS Contribution by Singapore Citizens / SPRs

Year Absolute Income Base* Yearly Maximum SRS Contribution
2021 (17 months x $6,000) = $102,000 15% of Absolute Income Base                   (15% x $102,000) = $15,300 

Yearly Maximum SRS Contribution by Foreigners

Year Absolute Income Base* Yearly Maximum SRS Contribution
2021 (17 months x $6,000) = $102,000 35% of Absolute Income base                 (35% x $102,000) = $35,700 

*The Absolute Income Base is calculated on 17 months of the CPF monthly salary ceiling.

The amount must be contributed before December 31st for the Year of Assessment, in order to qualify for relief.

TAX BENEFIT ILLUSTRATION

Here’s a tax illustration of two Singaporean males – Jekyll and Hyde. Both are single, age 32, earning $6,800 a month and received 3 months bonus. Upon attending a webinar on SRS, Jekyll decided to contribute to his SRS Account but Hyde choose not to do it.

SRS Savings

Jekyll’s SRS contribution will save him $1,071 or 40.41% of income tax compared to Hyde.

If you need more information on SRS, just provide us with your details below and we will contact you. Alternatively, you can WhatsApp us.

By submitting this form, you agree that Avallis Financial may collect, use and disclose your personal data, as provided in this entry form, for the following purposes in accordance with the Personal Data Protection Act 2012, the Privacy Statement and the Data Protection Policy  of Avallis Financial.

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