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How The Supplementary Retirement Scheme Can Help You Achieve Your Retirement Goals

How should you plan for your retirement? In Singapore, where individuals are responsible for funding their retirement, finding the best saving plan is paramount. One such option that stands out is the Supplementary Retirement Scheme (SRS). In this article, we will explore how the Supplementary Retirement Scheme can assist you in achieving your retirement goals while maximizing tax benefits.

1. The Supplementary Retirement Scheme (SRS):

The Supplementary Retirement Scheme is a voluntary scheme introduced by the Singapore government to encourage individuals to save for their retirement needs. The SRS is separate to your Central Provident Fund (CPF) and provides an avenue for Singaporeans and Permanent Residents to save and invest in a wide range of financial instruments to grow their retirement funds.

2. Tax Benefits:

One of the significant advantages of the Supplementary Retirement Scheme is its tax benefits. Contributions made to the SRS are eligible for tax relief, allowing you to reduce your taxable income. For Singaporeans and Permanent Residents, the contributions made are subject to a cap of $15,300, providing an incentive to save more for retirement. Additionally, investment returns generated within the SRS account are tax-free until withdrawal, further enhancing the potential for long-term growth.

3. Flexibility and Investment Options:

The Supplementary Retirement Scheme offers flexibility in terms of contribution amounts and investment options. You can choose the amount you wish to contribute to their SRS account, taking into consideration your financial capacity and retirement goals. Of course you would want to cap your contributions to the maximum amount of $15,300 to maximise your tax benefit. Any extra retirement funding can be invested outside of the SRS so that it would not be subject to the SRS withdrawal restrictions.

The SRS funds can be invested in a diverse range of financial instruments, including stocks, bonds, unit trusts, and even fixed deposits, enabling individuals to tailor their investment strategy to suit their risk appetite and preferences. Insurance Retirement Plans are also suitable if you do not want to keep reinvesting your funds regularly like fixed deposits or are worried about the volatile equities market.

4. Long-Term Growth Potential:

By leveraging the power of compounding, the Supplementary Retirement Scheme offers the potential for long-term growth of retirement funds. Contributions made to the SRS are invested in various financial instruments, allowing you to benefit from market movements and accumulate wealth over time. The SRS provides an avenue for individuals to tap into the growth potential of the financial markets while enjoying tax advantages, helping you to build a sizable retirement nest egg.

5. Retirement Income Stream:

Upon reaching the statutory retirement age in Singapore, you can begin withdrawing your SRS funds. The withdrawals are subject to prevailing tax rates, and they provide a regular income stream during retirement. By utilizing the Supplementary Retirement Scheme, you can supplement their CPF savings and other sources of retirement income, ensuring a comfortable and financially secure post-retirement life. Check out our SRS retirement income video here to see how you can use insurance solutions to build up your retirement income.


In the quest to find the best savings and retirement plan in Singapore, the Supplementary Retirement Scheme emerges as a powerful tool to achieve your retirement goals. Its tax benefits, flexibility, diverse investment options, and long-term growth potential make it an attractive choice for individuals seeking to enhance their retirement savings. By taking advantage of the Supplementary Retirement Scheme, you can enjoy tax advantages while building a substantial retirement fund that will support you during your golden years. Start planning and investing in your future today with the Supplementary Retirement Scheme and pave the way for a financially secure retirement.

Posted in Retirement