What is SRS?


 SRS was introduced to encourage individuals to voluntarily set aside part of their income for their retirement. SRS members can contribute a varying amount to SRS account (subject to cap), and may be used to purchase various investment instruments.

  • You can open an SRS account at participating SRS operators:
    1. Development Bank of Singapore (DBS) Ltd
    2. Overseas-Chinese Banking Corporation (OCBC) Ltd
    3. United Overseas Bank (UOB) Ltd



What are the benefits of contributing to SRS?


By contributing to SRS, you are able to enjoy income tax benefits, subjected to the personal income tax relief of $80,000 per year of assessment.

The contribution cap for Singaporean and SPR is $15,300 per annum.


For eg:
My Taxable income for year 2021: $100,000

After contributing to my SRS account of $10,000 in 2021, my Taxable income will be $100,000 - $10,000 = $90,000



When can I withdraw my SRS without penalty?


For Singaporeans and SPR, you can only withdraw from SRS savings without penalty before the statutory retirement age prevailing at the time of your first contribution. Only 50% of the SRS withdrawals will be taxable.


Note: There is a 10 year withdrawal period, and it will start from the date of first withdrawal.


What are the penalties if I made a premature withdrawal?


While SRS members may withdraw SRS savings anytime, any early withdrawals will be 100% taxable, and will also include a 5% withdrawal penalty.


For eg:
My Taxable income for year 2021: $40,000

I made a premature withdrawal from SRS of $10,000.
My Taxable income for year 2021 will therefore be: $40,000 + $10,000 = $50,000

On top of that, I will only receive $9,500 for my SRS withdrawal after the 5% penalty.


What can I do with my SRS contribution?


 As the interest rate for SRS account is fixed at only 0.05%p.a, you may wish to invest your SRS monies. With a wide range of financial instruments available (ranging from life insurance to unit trust), consult with our partnered financial advisors to understand which available products will suit your needs best!

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