Singapore’s Supplementary Retirement Scheme (SRS)

by Lawrence Lee on February 25, 2009

The Supplementary Retirement Scheme (SRS) was started by the  Singapore’s government in 1st April 2001 to address the financial needs of the ageing population.  The SRS is a voluntary scheme and participants can contribute any amount subject to the prevailing cap at their own discretion. With this scheme, the Singapore Government hopes to encourage more people to start saving for their retirement.

Contribution to the SRS will attract tax relief and investment return are tax free (with exception to Singapore dividends paid out by companies which is tax deducted or deductible by the payer company)

Who is eligible for SRS?

All Singaporeans, Permanent Residents and Foreigners are eligible for this scheme. The participant must be:

  • 21 years of age,
  • not an undischarged bankrupt and
  • are not of unsound mind

What are the benefits?

  • You can claim tax relief for contributing to the SRS.  It starts from the first dollar contribution. Each dollar of contribution will result in a reduction of income chargable to tax by a dollar.
  • Investment gains are tax free, with exception of Singapore dividends paid before 1st January 2008, which tax is deducted or deductible by the payer company, which are taxable at your individual tax rate.
  • Tax will be payable only when you withdraw from the SRS account. 50% of the saving withdrawn will be subjected to prevailing tax. You may chose to spread the withdrawal over 10 years to suit your financial needs.

How to participate in SRS?

Open a SRS Account with one of the three local banks SRS operators.

  1. Development Bank Of Singapore (DBS) Ltd
  2. Overseas-Chinese Bank Corporation (OCBC) Ltd
  3. United Overseas Bank (UOB)Ltd

How to  determine the individual’s SRS contribution cap?  

The SRS contribution rate for Singaporean and Permanent Residents is 15% for Foreigners is 35%. For foreigners, they must have a writtten declaration of their foreign status for calculating of the SRS contribution cap. Foreigners must make such declaration annually to their respective SRS operators to calculate their contribution cap. The absolute income base is $76,000 per annum (17 times of the prevailing CPF monthly salary ceiling of $4,500).

To know more about Supplementary Retirement Scheme, you may visit Ministry of Finance


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