Your SRS is earning just 0.05% p.a. Here’s how to grow it smarter.
Your SRS is earning just 0.05% p.a. Here’s how to grow it smarter.
Ever wondered if there’s a smarter way to save for retirement – and pay less tax at the same time?
That’s exactly what the Supplementary Retirement Scheme (SRS) was designed for. It’s a voluntary savings plan that gives you tax relief today while helping you build a bigger nest egg for tomorrow. Sounds good, right?
But here’s the catch: if your SRS money is just sitting in cash earning 0.05% interest per year, it’s not really working for you. Inflation is quietly eating away at its value.
Quick rundown: What is SRS?
The SRS is a voluntary savings scheme introduced by the Singapore government to complement CPF savings.
- You can contribute up to S$15,300 annually if you’re a Singaporean or PR, and up to S$35,700 if you’re a foreigner.
- Contributions qualify for immediate tax relief.
- When you withdraw after the statutory retirement age, only 50% of the amount is taxable – making SRS one of the most tax-efficient ways to grow your nest egg.
For example, Shi Hui earns S$80,000 a year. She contributes S$10,000 to her SRS account, reducing her taxable income to S$70,000. Years later, her SRS grows to S$200,000. When she withdraws at retirement, only half (i.e. S$100,000) is taxable, and withdrawals can be spread over up to 10 years for better tax management.
Note: Withdrawals before the statutory retirement age are subject to a 5% penalty and 100% of the amount withdrawn is taxable (except under specific circumstances like death or medical grounds).
The scheme also encourages investing to grow your retirement fund. Ready to maximise your savings and minimise taxes? Start your SRS journey today!
What’s more, from 10 November till 31 December 2025, receive up to S$50 in cash rewards when you open a new OCBC SRS Account and fund it with at least S$1,000. Limited to the first 1,000 customers only. Terms & conditions apply.
Why leaving SRS as cash isn’t ideal
Cash in your SRS account earns just 0.05% interest per annum. Meanwhile, inflation in Singapore averages 3–4% annually1. This means your money’s purchasing power shrinks over time. Imagine this: you set aside S$10,000 today, thinking it’ll help you later. Fast forward 10 years, if left untouched, that same amount would grow to approximately S$10,050.13, earning S$50.13 in interest, but may feel like only S$8,500 in real terms due to the impact of inflation.
To keep pace with inflation, your SRS funds need to earn at least 3–4% per year, and investing helps you achieve that.
Why it’s smart to invest your SRS
The great thing about SRS is that you don’t get taxed on your investment gains until you withdraw. That means your dividends, coupons, and capital gains can compound faster, letting your retirement savings grow more efficiently.
Even if you prefer low-risk options, investing your SRS funds may still be an option for you to stay ahead of inflation and earn higher returns than leaving it as cash.
How to start investing your SRS funds
You don’t need to take big risks to make your money work harder. Here’s a simple guide to the kind of SRS-eligible investments you can explore with OCBC:
| Investment type | What it offers | |
|---|---|---|
| Unit Trusts | Diversified portfolios managed by professionals, giving you access to bonds, equities and other assets. Ideal for investors seeking stability and consistent returns. Plus, from now till 31st December 2025, enjoy 25% off Unit Trust sales charge with promo code “BYE25UT”, and get an additional cash reward of up to S$60 when you invest a minimum of $15,000 using your SRS funds. T&Cs apply. |
Learn more |
| Blue Chip Investment Plan (BCIP) | Access blue chip shares and Singapore listed exchange traded funds from as low as S$100/month. Designed for long-term investors who want to build wealth steadily over time. | Learn more |
Getting started
- Open an OCBC SRS Account – You can do this online in minutes.
- Contribute before year-end – 31 December is the deadline for tax-relief eligibility.
- Invest your SRS wisely – Choose products that fit your risk profile and goals.
- Review regularly – Rebalance as your needs and market conditions change.
The bottom line
SRS isn’t just about tax savings. It’s a powerful way to grow your retirement funds. By investing your contributions early, you give your money time to compound and stay ahead of inflation. Remember: Leaving your SRS idle as cash at 0.05% interest per annum means losing value over time. Make your SRS work harder today and build the financial future you deserve.
References
1 Source: Singapore CPI All Items Year-on-Year Index, 31 October 2020 to 30 October 2025, Bloomberg
Important information
Personal income tax relief cap of S$80,000 will apply from Year of Assessment 2026 to SRS contributions made on or after 1 January 2025. This cap applies to the total amount of all tax reliefs claimed, including any relief on SRS contributions. All figures provided are for illustration purposes only. Actual figures may differ or vary according to actual circumstances. Information presented as of November 2025. Protected up to specified limits by SDIC.
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Global Equities Disclamier
- Dividend growth is not guaranteed, nor are companies in which you invest obliged to pay dividends;
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