Should You Invest Your Supplementary Retirement Scheme (SRS) Savings? October 1, 2025
Should You Be Investing Your Supplementary Retirement Scheme (SRS) Savings?
Many individuals in Singapore can expect to spend an average of 2025 years in retirement. Over such an extended period, inflation may gradually reduce overall purchasing power. Therefore, it is essential to secure financial stability by ensuring there are sufficient savings to cover essential needs and living expenses during this period.
Investing your SRS savings may be crucial for combating inflation and maximising your retirement savings. Aside from the average 0.05% bank interest earned on idle savings, SRS savings can be invested in various instruments, providing more opportunities to grow at a rate that may keep up with or even outpace inflation.
What is the Supplementary Retirement Scheme (SRS)?
The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme introduced by the Singapore government to help individuals build a larger pool of retirement savings earlier in life. It provides an additional layer of savings to complement CPF, offering tax advantages and investment growth opportunities.
Singapore Citizens/Permanent Residents can contribute up to a yearly maximum of S$15,300, and foreigners can contribute up to S$35,700.
| Singaporeans/Permanent Residents | S$15,300 | Foreigners | S$35,700 |
Individuals can make tax-free withdrawals from their SRS accounts of up to S$40,000 annually over a period of 10 years. The statutory retirement age is fixed when the first SRS contribution is made. Any subsequent change in the statutory retirement age will not affect an individual’s ability to withdraw.
This ensures that the SRS withdrawal age remains consistent even if the official retirement age changes later.
Why Should You Invest Your Supplementary Retirement Scheme (SRS) Savings?
While SRS offers a baseline interest rate of 0.05%, there are a variety of investment options available through the scheme to make your money work harder for you. Through the SRS framework, your accumulated savings can be diversified across multiple asset classes and markets – including Unit Trusts, Stocks, ETFs, and many more.
Additionally, gains from your SRS investments are not subject to tax while they remain in your account. By investing early, your SRS savings benefit from compounding, providing an additional stream of income to complement your CPF savings.
In summary, SRS offers three benefits: tax relief on contributions, potential investment returns, and tax concessions on withdrawals, where only 50% of the withdrawn amount is subject to tax.
How to Open an SRS Account?
You can open an SRS account with any of the three local participating banks either online/in-person:
Before opening an account, you will be required to confirm that you do not have an existing SRS account with another SRS operator before proceeding.
*For foreigners: Please complete the Declaration Form for SRS (For Foreigners) to declare your foreigner status*
Required Documents
Document required for opening an SRS account: NRIC/FIN or Passport
Who is eligible to open an SRS account?
Singapore Citizens, Singapore Permanent Residents (SPRs) and foreigners who:
- Are at least 18 years of age;
- Are not an undischarged bankrupt; and
- Do not have a mental disorder and can manage themselves and their affairs;
- Do not already have an SRS account (including one that has been suspended) with the same or another operator; and
- Do not have a pending application with another SRS operator to open an SRS account; and
- Have not previously had an SRS account with the same or another SRS operator where all the funds had been withdrawn
- i) On medical grounds; or
- ii) On or after reaching the statutory retirement age prevailing at the time of your first contribution.
SRS Investment Options: What Can You Invest in?
SRS savings can be allocated across various investment vehicles – ranging from low-risk fixed deposits to higher risk options like stocks. This flexible approach enables individuals to align their investments with their goals and risk tolerance.
| Unit Trusts | REITs | Stocks | Singapore Government Securities | ETFs | Single Premium Insurance Products | Fixed Deposits |
Low Volatility/Sustainable Options for SRS Investing with Phillip Capital Management (PCM)
Investors looking for investment strategies designed to provide consistent returns and high liquidity may find the ‘Phillip Money Market Fund’ suitable as a low-risk option. Investors with higher risk tolerance who are interested in companies engaging in sustainable practices can look into funds such as the ‘Sustainable Reserve Fund’.
1. Phillip Money Market Fund
The Phillip Money Market Fund aims to provide a high level of liquidity while delivering returns comparable to those of Singapore dollar savings deposits. The Sub-Fund invests primarily in short-term, high-quality money market instruments and debt securities. Through strategic diversification, it enables the fund to optimise yield without compromising flexibility.
https://www.poems.com.sg/fund-finder/phillip-money-market-fund-534010/
2. Sustainable Reserve Fund
The Sustainable Reserve Fund is a diversified, short duration bond fund that aims to achieve income yield enhancement over the 6-month Singapore Overnight Rate Average (SORA). Guided by its proprietary ESG-integrated investment framework, the fund employs an inclusionary, sustainability-focused selection process—investing at least 70% of assets in issuers committed to taking appropriate actions that contribute to a green economy. The Sub-fund primarily invests all its assets in global fixed-income instruments (including short-term interest-bearing debt instruments and bonds), money market instruments and bank deposits (including fixed deposits). Structured as a short-duration bond fund, it achieves robust diversification across issuers, with no specific sectoral emphasis.
Find out more here:
https://www.poems.com.sg/fund-finder/sustainable-reserve-fund-a-sgd-dis-sgxz21949797-534202/
https://www.poems.com.sg/fund-finder/sustainable-reserve-fund-a-sgd-acc-sgxz39183199-534201/
Conclusion
The Supplementary Retirement Scheme (SRS) is more than just a tax-deferral tool. Investing your SRS savings can serve as a powerful strategy to counter inflation in the long run. Ultimately, it plays a strategic role, amplifying the growth potential of your retirement nest egg while preserving its value.
FAQs about Supplementary Retirement Scheme
How do I start investing using my SRS Savings on POEMS?
- Open an SRS account with any of the three participating banks stated above.
- Link your SRS Account to your trading account via POEMS 2.0 or POEMS Mobile 3 App:
- Log in to POEMS 2.0 > My Settings > My Account > Bank A/C information > Select ‘SRS’ tab > Fill up the required information
- Log in to POEMS Mobile 3 App > ‘Me’ Tab > Bank A/C Information > Select the pen icon on the top right-hand corner > Select ‘SRS’ and fill up the required information
- Filter investment type to ‘SRSIA’ to search for funds.
I’m new to SRS investing. What’s a good way to get started?
If you’re investing for the first time, start with beginner-friendly options:
- Unit Trusts – offering diversified portfolios to mitigate investment risks.
- SMART Portfolio – a discretionary investment service that matches a best-fit portfolio based on your online risk analysis.
What happens to my SRS savings when I reach the retirement withdrawal age?
You may make penalty-free withdrawals spread over 10 years (starting from the date of your first penalty-free withdrawal) on or after the statutory retirement age that was prevailing at the time of your first SRS contribution.
50% of the withdrawal sum from your SRS account is subject to tax and will be taxed at the rate applicable to you.
Disclaimer
These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.
Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance.
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About the author
Nicholas Kee
Investment Solutions Manager with 14 years of experience spanning across wealth management, business & product development, platform & project management and sales & marketing. Well-versed in a broad range of financial solutions and services which include Equities, Fixed Income, Investment Funds and Insurance.
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