Supplementary Retirement Scheme Account

SRS is a form of savings to better prepare you for your retirement and potentially reduce your current income tax. You set aside an amount of money that you wish to save in SRS, subject to the contribution cap, for retirement.

PRODUCT BENEFITS

Upon retirement, when your income tax bracket should be lower, only 50% of the amount withdrawn will be taxable^.

You can use your SRS savings* to invest in a wide range of financial products. Thus, you benefit from compounding of potential returns, making your SRS savings (and the tax savings) work harder.

^ If you withdraw on or after the prescribed retirement age, or on medical grounds, or upon death or if you are a foreigner and have maintained your SRS account for at least 10 years.

Besides having a potentially larger retirement nest egg, the SRS offers attractive tax benefits:

• Tax deduction for all contributions made to SRS, subject to the contribution cap.
• Investment gains accumulate tax-free in the SRS**.
• Upon retirement, only 50% of the amount withdrawn will be taxable^. What's more, you may spread your withdrawals over 10 years. With lower or minimal income at retirement, you may be paying little or no tax at all on the amount withdrawn.

* The interest rate on balances in the Supplementary Retirement Scheme Account which are not invested is currently 0.100% p.a..
** With the exception of Singapore dividends received, which are taxable at your individual tax rate.

To make a contribution to your SRS account:

• Drop a cheque at the Quick Cheque Deposit Boxes located outside DBS/POSB Branches; or
  
• Visit any POSB Branch

To enjoy tax benefits for income earned this year, your SRS contributions must be made by 31st December***.

***Cheque deposits must be cleared by 31st December.

If you wish to withdraw before the prescribed retirement age, a penalty of 5% of the withdrawn amount applies. In addition, the entire withdrawn amount will be taxable. If you are not a Singaporean, withholding tax applies.