SRS contributions

The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings. Contributions to SRS are eligible for tax relief. Investment returns are tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement.

Who is eligible to open an SRS account

Singapore Citizens, Singapore Permanent Residents (SPRs) and foreigners who derive any form of income can make SRS contributions in the current year. You must be:

  1. At least 18 years of age;
  2. Not an undischarged bankrupt;
  3. Not suffering from a mental disorder; and
  4. Capable of managing yourself and your affairs.

How to open an SRS account

SRS accounts are managed by these 3 bank operators. You may approach the banks listed below to open an SRS account and start to contribute.

You can only have one SRS account at any point in time. It is an offence and there are penalties to open SRS accounts with more than one operator.

The 3 SRS operators are:

Documents required for opening an SRS account:

Please note that you will not be permitted to open a new account if you previously had an SRS account, but had closed the account after withdrawing all the monies due to the following reasons:

  • Having attained the relevant retirement age*, or
  • On medical grounds

(* The statutory retirement age that was prevailing when you made your first SRS contribution.)

You may refer to the Ministry of Finance’s website for the FAQs on participating in SRS.

Changing of SRS Bank Operator

You may change the SRS bank operator of your SRS account by obtaining the “Transfer of Account Form” from the new SRS operator, who will then liaise with your existing operator to effect the transfer.

Amount of SRS Contribution

You and/or your employer (on your behalf) may contribute at any time, and as often as you like, subject to the maximum SRS contribution for the year. Contributions must be made in cash.

Yearly Maximum SRS Contributions

Year

Singapore Citizens/ SPRs

Foreigners

2016 (i.e. YA 2017) onwards

$15,300$35,700

 

For Foreigners: Annual Declaration Form required by Bank Operator

Foreigners are required by the SRS bank operator to complete the Declaration Form for SRS (DOC, 77KB) and declare your foreigner status. This allows the operator to calculate your maximum SRS contribution.

If you become a Singapore Citizen or Singapore Permanent Resident during the year, please update the SRS bank operator as your maximum contribution amount will have to be recalculated even if you have already made contributions for that year. The SRS bank operator will re-compute your SRS contribution cap for the year on a pro-rata basis.

Penalties may be imposed for excess contributions if a wrongful declaration has been made to the SRS bank operator. For example, if, at the time of contribution, you are already an SPR, you cannot declare that you are a foreigner.

When to contribute

All contributions must be made by 31 Dec of the year or as your SRS operator requires, to be eligible for SRS tax relief. However, SRS members are advised to ask their SRS bank operator about the cut-off date for SRS contributions.

Please note that for each Year of Assessment (YA), a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including relief on SRS contributions). There will be no refund for SRS contributions made. Please evaluate whether you would benefit from tax relief on your SRS contributions, and make an informed decision.

If you require more information on SRS, you may refer to the Ministry of Finance’s website for the FAQs on SRS contributions.

  • Can I obtain a refund of my SRS contributions made in year 2020, if for YA 2021, the total amount of personal reliefs which I can claim is more than $80,000, even without any tax relief on my SRS contributions?

    There will be no refund for SRS contributions made. As such, please take note of the overall personal income tax relief cap and evaluate whether you would benefit from the tax relief on your SRS contributions, and make an informed decision.

  • If a foreigner converted his status to Singapore Permanent Resident (SPR) in the later part of the year and contribution has been made in earlier part of the year, what will be his contribution cap?

    A pro-rated contribution cap applies. You should contact the SRS operator to have your contribution cap recalculated.

  • If a person is a non-SPR in the current year but is a SPR in the next year, what will his/her SRS contributions cap be in the next year?

    If a person is a non-SPR in the current year but is a SPR in the next year, his SRS contribution cap in the next year would be $15,300, which is the cap applicable to Singaporean/SPRs.

  • If a foreigner started contributing to SRS at the age of 55, will he be allowed to withdrawal SRS contribution without penalties, at the age of 62? Does he need to wait for 10 years to make a penalty-free withdrawal?

    Any SRS member, regardless whether he is a foreigner or not, may withdraw his SRS without penalties at the age of 62, if that is the statutory retirement age prevailing at the time of his first contribution.