You may withdraw funds from your SRS account any time. Withdrawals can be made: 

  • in cash;
  • in the form of investments for the qualifying types of withdrawal. 

Withdrawals in the form of monies or investment from your SRS Account are subject to income tax and added to your other taxable income (e.g. employment, rental). It will be taxed based on the prevailing tax rate. The time and circumstances of the withdrawal determine the taxable amount of the withdrawal. 

When a foreigner or Singapore Permanent Resident withdraws from his SRS account, the withdrawal is subject to withholding tax.

10-year withdrawal period

You may make penalty-free withdrawals from your SRS account over 10 years starting from the date of your first penalty-free withdrawal. 

Withdrawals are penalty-free only if they take place on or after the statutory retirement age (currently at 62) that was prevailing at the time of your first SRS contribution (i.e. prescribed retirement age). If you have already opened an SRS account and made your first contribution, any subsequent change in the statutory retirement age (e.g. up to age 65) will not affect you (i.e. you may still begin your first penalty-free SRS withdrawal when you reach age 62).

Withdrawals from SRS accounts are subject to tax in the Year of Assessment following the year of withdrawal. You need not declare the withdrawal in your Income Tax Return as it will be included in your tax assessment based on information provided by the SRS operator. The amount is subject to tax based on the tax rate applicable to you. If you are a non-Singaporean who no longer works and lives in Singapore, you will be taxed as a non-resident when you withdraw the fund from your SRS account.

As the tax benefits under the SRS are given to incentivise saving for retirement, withdrawals made before the prescribed retirement age may result in penalties being imposed in most circumstances except those made under exceptional circumstances as follows: 

  • Death
  • Medical Grounds
  • Bankruptcy; and
  • Full withdrawal of the SRS balance by a foreigner (subject to conditions).

Example 1: First withdrawal at statutory retirement age

SRS member A started his first penalty-free withdrawal on 1 Apr 2020 (at age 62). The statutory retirement age prevailing at the time of his first SRS contribution was 62. He may spread his withdrawals until 31 Mar 2030 as follows:

Year Period
1 1 Apr 2020 to 31 Mar 2021
2 1 Apr 2021 to 31 Mar 2022
3 1 Apr 2022 to 31 Mar 2023
4 1 Apr 2023 to 31 Mar 2024
5 1 Apr 2024 to 31 Mar 2025
6 1 Apr 2025 to 31 Mar 2026
7 1 Apr 2026 to 31 Mar 2027
8 1 Apr 2027 to 31 Mar 2028
9 1 Apr 2028 to 31 Mar 2029
10 1 Apr 2029 to 31 Mar 2030*

* 31 Mar 2030 marks the end of his withdrawal period.

Balance in SRS account

The balance in your SRS account is made up of your SRS contribution and investment returns accumulated over the years. 

The amount (except for life annuities) in the SRS account will be deemed to be withdrawn immediately after the end of the 10-year withdrawal period. If the SRS member has insurance policies such as endowment policies and term annuities in his SRS account at the end of the 10-year withdrawal period, he does not need to close his SRS account or surrender his insurance policies. The value of the insurance policies (i.e. based on the surrender values determined by the insurance companies) together with the cash and market value of other investments in the SRS account will be deemed to be withdrawn.

The SRS operator will report 50% of such balance to IRAS and this is subject to tax in the following year.

For investments in life annuities, the 10-year withdrawal period does not apply. So long as you continue to receive your annuity payments for life, 50% of the annuity payments will be subject to tax each year.

 

Balance in SRS account after deemed withdrawal

You may withdraw the balance from the SRS account at the end of the withdrawal period.

If you choose not to withdraw the balance but to leave the balance with the SRS operator, future returns from the investments will be subject to the same tax treatment as any other investments.

Types of withdrawals

     
  Type of withdrawal Amount subject to tax 5% penalty imposed?
Penalty-free withdrawal Withdrawal on or after prescribed retirement age
(withdrawal can be spread over 10 years from the date of first penalty-free withdrawal)
50% of withdrawal sum No
 Withdrawal on medical ground
(physical or mental incapacity; partial withdrawal on grounds of terminal illness)
50% of withdrawal sum No
 Withdrawal in full due to terminal illness 50% of full withdrawal sum less an exempt amount of up to $400,000 No
 In the event of bankruptcy 100% of withdrawal sum No
 Withdrawal in one lump sum by a foreigner (with at least 10 years holding period) 50% of lump sum No
Other withdrawals Early withdrawals before prescribed retirement age 100% of withdrawal sum  Yes

Withdrawal on or after prescribed retirement age

To encourage individuals to withdraw their SRS savings at age 62 (the current statutory retirement age) or later, the Government grants a 50% tax concession for such withdrawals (i.e. only 50% of the withdrawal is subject to tax). Such withdrawals also do not attract a 5% penalty.

Spreading out your withdrawals will generally result in greater tax savings.

Example 2: Withdrawal on or after prescribed retirement age

The date of birth of SRS member B is on 1 Mar 1957. He has no taxable income (e.g. employment, rental) from age 63. He made his first penalty-free withdrawal on 1 Apr 2020 (at age 63) and the amount standing in his SRS account was $400,000. He withdraws his SRS monies on 1 Apr every year. The statutory retirement age prevailing at the time of his first SRS contribution was 62 years old.

SRS member B withdraws $40,000 per year.

Only 50% (i.e. $20,000) of the yearly withdrawal amount is regarded as taxable income. Taking Year of Assessment (YA) 2021 as an example, no tax needs to be paid as the tax rate is zero for the first $20,000 of the individual's chargeable income.

YA Withdrawal amount Withdrawal amount subject to tax (50%) Tax payable
2021 $40,000 $20,000 $0 
2022 $40,000 $20,000  $0
2023 $40,000 $20,000  $0
2024 $40,000 $20,000  $0
2025 $40,000 $20,000  $0
2026 $40,000 $20,000 $0 
2027 $40,000 $20,000 $0
2028 $40,000 $20,000 $0 
2029 $40,000 $20,000 $0
2030 $40,000 $20,000 $0

Withdrawal on medical grounds (e.g. physical/mental incapacity and partial withdrawal on grounds of terminal illness)

If you are physically or mentally incapacitated and not able to continue in any employment or suffering from a terminal illness, you may withdraw your SRS savings at any time. 50% of the amount withdrawn is subject to tax. The penalty for early withdrawal does not apply.

You and the qualified medical practitioner currently registered under the Medical Registration Act are required to complete the Application for Penalty-Free Premature Withdrawal of Funds from SRS Account on Medical Grounds (DOC, 76KB).

Withdrawal in full on terminal illness and deemed withdrawal on death

Currently, an SRS member can withdraw up to $40,000 per year# from his SRS account tax-free on or after reaching age 62, if he has no other taxable income and relief. Over the 10-year withdrawal period, he can withdraw up to $400,000 ($40,000 per year x 10 years) tax-free. However, if an SRS member made a full withdrawal on the grounds of terminal illness or passes away before completing his SRS withdrawals, he would not be able to enjoy the full benefit from spreading out his SRS withdrawals over a 10-year period. 

Hence, from Year of Assessment 2016, a tax exemption of up to $400,000 would be granted for SRS funds withdrawn in full on the grounds of terminal illness or deemed withdrawn upon an SRS member's demise. This is to ensure that SRS members are not unduly disadvantaged due to terminal illness or death. 

If an SRS member passes away, any sum standing in his SRS account shall be deemed to be withdrawn on the date of his death. 

SRS members who have not started the 10-year withdrawal period will enjoy the full tax exemption of $400,000.

Otherwise, the exemption amount will be adjusted based on the prior withdrawals made, and the number of years remaining in the 10-year withdrawal period. 

50% of any remaining amount of such a full or deemed withdrawal would then be subject to tax i.e. 50% of {full or deemed amount withdrawn on death - [amount exempt from tax or adjusted exemption amount - amount withdrawn on medical/retirement ground in year of full withdrawal/death (capped at $40,000)]} is subject to tax. 


# the amount withdrawn subject to tax is 50% of $40,000 which is $20,000. The tax payable on first $20,000 of chargeable income is Nil.


The SRS operator needs to submit the Notification to IRAS of Full Withdrawal of Funds from SRS on Grounds of Terminal Illness (DOCX, 48KB).

Example 3: Computation for full withdrawal on terminal illness (no prior penalty-free withdrawal)

SRS member, Mr Tan has $300,000 savings in his SRS account. In 2020, he made his first penalty-free SRS withdrawal, which is a full withdrawal of all the funds (i.e. $300,000) standing in the SRS account, on the grounds that he is suffering from a terminal illness. The tax treatment of his SRS withdrawal is as follows:

 

50% x {full withdrawal amount - [amount exempt from tax - any withdrawal on medical/retirement grounds in 2020 (capped at $40,000)]}

 

As Mr Tan has not made any penalty-free withdrawal on grounds of retirement or partial withdrawal on medical grounds prior to this withdrawal in full on terminal illness, the amount that is exempted from tax is $400,000 ($40,000 x 10 years).

 

Since the amount of $300,000 withdrawn is less than the exemption threshold of $400,000, the full amount is not taxable.

Example 4: Computation for full withdrawal on terminal illness (with a prior penalty-free withdrawal in the past year)

SRS member, Mr Lim made his first penalty-free withdrawal of $30,000 from his SRS account on medical ground in 2019. In 2020, he made a full withdrawal of all funds standing in his SRS account (i.e. $400,000), on the grounds that he is suffering from a terminal illness.

The tax treatments of his SRS withdrawals are:

Medical ground (not full withdrawal) for Year of Assessment 2020

50% x $30,000 (i.e. $15,000) is subject to tax

Tax on first $20,000 of chargeable income is Nil. Assume that he has no other income, no tax is payable on the amount $30,000 withdrawn.

Medical ground (full withdrawal on terminal illness) for Year of Assessment 2021

50% x {full withdrawal amount - [adjusted exemption amount - any withdrawal on medical/retirement grounds in 2020 (capped at $40,000)]}

Full amount withdrawn   $400,000
Less: Adjusted exemption amount* $360,000  
Less: Amount withdrawn on medical/retirement ground in year of full withdrawal NIL ($360,000)
Net amount  $40,000
50% of the net amount is subject to tax  $20,000 ($40,000 x 50%)

* Mr Lim first commenced his 10-year penalty-free withdrawal period in calendar year 2019. For subsequent penalty-free withdrawals after 2019, he is able to make such withdrawals (of up to $40,000 p.a. tax-free if he has no other income) from 2020 to 2028 i.e. 9 remaining years of the 10-year withdrawal period. Thus, adjusted amount that is exempt from tax is $360,000 ($40,000 x 9 years).

Example 5: Computation for full withdrawal on terminal illness (with a prior penalty-free withdrawal in the current year)

SRS member, Mr Wong made his first penalty-free withdrawal of $50,000 from his SRS account on medical ground in Aug 2020. In Dec 2020, he made a full withdrawal of all funds standing in his SRS account (i.e. $400,000) on the ground that he is suffering from a terminal illness.

The tax treatments of his SRS withdrawals are:

Medical ground (not full withdrawal) for Year of Assessment 2021

50% x $50,000 i.e. $25,000 is subject to tax

Medical ground (full withdrawal on terminal illness) for Year of Assessment 2021

50% x {full withdrawal amount - [amount exempted from tax - any withdrawal on medical/retirement grounds in 2020 (capped at $40,000)]}

Full amount withdrawn   $400,000
Less: Amount exempted from tax* $400,000  
Less: Amount withdrawn on medical/retirement ground in 2020 (capped at $40,000) ($40,000) ($360,000)
Net amount  $40,000
50% of the net amount is subject to tax  $20,000 ($40,000 x 50%)

* As Mr Wong has not made any penalty-free withdrawal on grounds of retirement or partial withdrawal on medical grounds in the years prior to year of withdrawal in full on terminal illness, the amount exempt from tax is $400,000 ($40,000 x 10 years).

Total amount withdrawn subject to tax for Year of Assessment 2021 is $25,000 + $20,000 = $45,000.

Example 6: Computation for deemed withdrawal on death (no prior penalty-free withdrawal)

SRS member, Mr Koh had $200,000 savings in his SRS account when he passed away on 8 Jan 2020. He had not made any penalty-free withdrawal on medical ground before his death. The tax treatment of his deemed withdrawal amount of $200,000 on his death is:

 

50% x {full withdrawal amount - [amount exempted from tax - any withdrawal on medical/retirement grounds in 2020 (capped at $40,000)]}

 

As Mr Koh has not made penalty-free withdrawal on medical grounds prior to his death, the amount that is exempt from tax is $400,000 ($40,000 x 10 years).

 

Since the deemed withdrawal amount of $200,000 is less than the exemption threshold of $400,000, the full amount is not taxable.

Example 7: Computation for deemed withdrawal on death (with prior penalty-free withdrawal)

SRS member, Mark made his first penalty-free withdrawal of $40,000 from his SRS account after reaching prescribed retirement age of 62 in 2018. He did not make any withdrawal in 2019 as he has employment income of $50,000 from teaching part-time. He passed away on 1 Aug 2020 and amount standing in his SRS account deemed to be withdrawn on his death is $360,000.

The tax treatments of his SRS withdrawals are:

Withdrawal on grounds of retirement for Year of Assessment 2019
50% x $40,000 (i.e. $20,000) is subject to tax

Tax on first $20,000 of chargeable income is Nil. Assume that he has no other income, no tax is payable on the amount $40,000 withdrawn.

Deemed withdrawal upon death for Year of Assessment 2021
50% x {amount deemed withdrawn - [adjusted exemption amount - amount withdrawn on medical ground/retirement in 2020 (capped at $40,000)]}

Full amount withdrawn   $360,000
Less: Adjusted exemption amount* $320,000  
Less: Amount withdrawn on medical/retirement ground in 2020  NIL ($320,000)
Net amount  $40,000
50% of the net amount is subject to tax  $20,000 ($40,000 x 50%)

* Mark commenced his 10-year withdrawal period in 2018. When he passed away on 1 Aug 2020, he had 8 remaining years of the 10-year withdrawal period (i.e. 2020 to 2027). The adjusted exemption amount is $320,000 ($40,000 x 8 years).

Withdrawal in the event of bankruptcy

You may apply to withdraw your SRS savings on grounds of bankruptcy if you are bankrupt. 100% of the amount withdrawn is subject to tax. The penalty for early withdrawal does not apply. 

The SRS operator needs to submit the Application for Penalty-Free Premature Withdrawal of Funds from SRS Account upon Bankruptcy (PDF, 78KB).

Withdrawal of lump sum by a foreigner (with at least 10-years holding period)

If you are a foreigner, you may apply to withdraw your SRS savings without penalty if you: 

  1. are neither a Singapore Citizen nor a Singapore Permanent Resident on the date of withdrawal and for a continuous period of 10 years preceding the date of withdrawal; and
  2. have maintained your SRS account for at least 10 years from the date of your first SRS contribution; and
  3. make a one-time full withdrawal from your SRS account. 

50% of the amount fully withdrawn is subject to tax. 

Withdrawal before prescribed retirement age

You may withdraw your SRS savings anytime, although early withdrawals are fully subject to tax and attract a 5% penalty.

 SRS operator will complete Form PMP to account for the penalty on early withdrawal by Singapore Citizens and Form IR37B for Singapore Permanent Residents and foreigners. These forms are available as S45 Offline Data-Entry Import Template.

Example 8: Early withdrawal

The date of birth of SRS member C is 1 Mar 1959. He has no taxable income (e.g. employment, rental) from age 60. He withdraws his SRS monies on 1 Apr every year starting from 1 Apr 2020 at age 61. The amount standing in his SRS account at that time was $400,000. The statutory retirement age prevailing at the time of his first SRS contribution was 62.

YA Age Withdrawal amount Withdrawal amount subject to tax (50%) Penalty (5%)#
2021 61 $40,000 $40,000* $2000
2022 62 $40,000 $20,000^ $0
2023 63 $40,000 $20,000^ $0
2024 64 $40,000 $20,000^ $0
2025 65 $40,000 $20,000^ $0
2026 66 $40,000 $20,000^ $0
2027 67 $40,000 $20,000^ $0
2028 68 $40,000 $20,000^ $0
2029 69 $40,000 $20,000^ $0
2030 70 $20,000 $10,000^ $0
2031 71 $20,000 $10,000^ $0

# 10-year penalty-free retirement withdrawal period starts from age 62 (i.e. YA 2022 to YA 2031).

* As the withdrawal at age 61 is an early withdrawal, 100% of the amount withdrawn is taxable. In addition, a 5% penalty is applicable.

^ Only 50% of the withdrawal amount is regarded as taxable income as he withdrew the amount after attaining the age of 62 years.

Annuity payments

50% of the annuity payments are subject to tax after the SRS account is closed or deemed to be closed. SRS account is deemed closed at the end of the 10th year of the 10-year withdrawal period.

Withdrawals in the form of investments

SRS members who meet the qualifying conditions can apply to their SRS operators to withdraw investments from their SRS accounts without having to liquidate their investments. This is applicable for the following types of penalty-free withdrawals: 

  1. withdrawal on or after the statutory retirement age prevailing at the time of an SRS member's first contribution (prescribed retirement age);
  2. withdrawal on medical grounds;
  3. withdrawal in full by a foreigner who has maintained his SRS account for at least 10 years from the date of his first contribution; and
  4. actual withdrawal from an SRS account that is deemed to be closed (e.g. after the end of the 10-year withdrawal period or the death of the SRS member). 

You may refer to the Ministry of Finance’s website for the FAQs on SRS withdrawals and SRS investments.

Withholding tax on SRS withdrawals

There is no withholding tax on SRS withdrawals made by Singaporean account holders. 

If a foreigner or Singapore Permanent Resident (SPR) has applied to withdraw from his SRS account, 50% or 100% of the withdrawn amount, depending on the type of the withdrawal, will be subject to a withholding tax. 

The SRS bank operator will: 

  1. Withhold an amount of tax at the prevailing non-resident tax rate of 22% at the point of withdrawal. This amount will be remitted to IRAS.
  2. Deduct a 5% penalty on any premature withdrawals. The 5% penalty is non-refundable and is separate from the withholding tax.
  3. Electronically transmit the information on the withdrawal and pay the withholding tax to IRAS.

Example 9: Computation of withholding taxes

Scenario 1:

Mr Chan (a foreigner) made a withdrawal of $300,000 from his SRS account after his retirement age.

Example on withholding tax paid for SRS withdrawal made after retirement age

Scenario 2:

Mr Tan (an SPR) made a withdrawal of $300,000 from his SRS account before his retirement age, which resulted in a 5% penalty imposed.

Example on withholding tax paid for SRS withdrawal made before retirement age

Concessionary Withholding Tax Rate

The concessionary withholding tax rate of 15% will apply if the following conditions are met:

  1. Cumulative amount withdrawn by the foreigner or SPR from his SRS account in the calendar year does not exceed $200,000; and
  2. The foreigner or SPR does not have any other income besides the SRS withdrawal(s) during the calendar year when the withdrawal(s) is/are made.

To enjoy this concession, the SRS account holder must declare that he fulfills the 2 conditions above using the Form IR37B(1). The Form IR37B(1) is available with the SRS operator.

Withholding tax is not the final tax payable

If the foreigner or SPR is a Singapore tax resident, the actual tax payable on the SRS withdrawal will be based on the progressive resident rates

For a non-resident, the actual tax payable on the SRS withdrawal will be 15% or the progressive resident rates, whichever is higher.

Applying for a refund

Tax withheld on the SRS withdrawal is a tax credit that will be used to offset your actual tax liability. Any unused tax credit will be refunded to you. 

Please file an Income Tax Return during the e-Filing period (1 Mar to 18 Apr) in the year following the year of tax withheld, via myTax Portal, for the actual tax liability to be computed and unused tax credits to be refunded.

Example 10: Computation of refund

Assuming the actual tax rate applicable for the SRS withdrawal is finally determined to be 15% and you have no other tax liability, the refund you will receive is calculated as follows:

Example on computing the refund for the tax withheld on SRS withdrawal

FAQs

I am a foreigner who started contributing to SRS at the age of 55. Will I be allowed to withdraw SRS contribution without penalties, at the age of 62? Do I need to wait for 10 years to make a penalty-free withdrawal?

Any SRS member, regardless of 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.

What is the rationale for allowing withdrawal of investment products for the 4 specific types of withdrawal, which qualifies for the 50% tax concession?

This is to allow SRS members to hold their SRS investments outside of the SRS scheme without having to incur the transaction costs to first liquidate their SRS investments (so as to withdraw cash from their SRS accounts) and thereafter re-purchase the same investments outside of the SRS scheme.

Can I nominate a beneficiary for my SRS funds?

No. We do not have a provision in the SRS allowing for the nomination of a beneficiary of an SRS account. This is because SRS savings are meant for the SRS members’ own retirement purposes. However, if the SRS member passes away, the SRS balances will form part of his estate and will be distributed according to his will or the law (if a will does not exist). There will be no 5% penalty on withdrawal and only 50% of the sum standing in the SRS account after deducting the amount of deemed withdrawal upon death that is exempt from tax will be subject to income tax.

Please also note that SRS bank operators may require the Grant of Probate or Letters of Administration to be produced by the executor or administrator of the estate to ensure that the assets in the SRS are distributed correctly.