The Supplementary Retirement Scheme (SRS) is a voluntary retirement savings account that gives tax relief on contributions and defers tax until withdrawal. SRS money can be used to buy certain endowments and annuities, but the rules differ from buying with cash: only single-premium designs qualify, life cover is capped, payouts flow back into the SRS account, and the tax on withdrawals depends on whether the policy is a life annuity.
Several rules below come from MOF's SRS FAQ booklet, dated December 2017 and still linked from MOF's SRS page in October 2026; confirm the current position with your SRS operator and the insurer. The booklet also notes that the decision to accept SRS monies generally lies with the product provider.
SRS in brief
SRS is run by the private sector under rules set by MOF, with IRAS administering the tax. IRAS lists DBS, OCBC and UOB as the SRS operators; each person may hold one SRS account.
| Feature | Rule (as stated by MOF / IRAS, 2026) |
|---|---|
| Annual contribution cap | S$15,300 for Singapore Citizens and PRs; S$35,700 for foreigners (since 1 January 2016) |
| Deadline for relief | Contributions made by 31 December count for the following Year of Assessment |
| Tax relief | Dollar-for-dollar, within the overall personal relief cap of S$80,000 per Year of Assessment |
| Tax on returns inside the account | Not taxed before withdrawal |
| Eligible investments | Shares, unit trusts, bonds, fixed deposits, ETFs and certain life insurance products (subject to limits) |
| Withdrawal before retirement age | Fully taxable plus a 5% penalty, except in specified cases |
| Withdrawal at or after retirement age | 50% of the amount withdrawn is taxable |
| Death or terminal illness | Full withdrawal on terminal illness, or deemed withdrawal on death: tax exemption of up to S$400,000, reduced for prior penalty-free withdrawals; 50% of any remainder taxable (IRAS, 3 Sep 2026) |
Foreigners face additional steps, including an annual declaration, and a separate lump-sum withdrawal route; see savings plans for foreigners and new PRs.
What SRS money is invested in
MOF publishes SRS statistics each year. As at December 2025 there were 516,376 SRS account holders, with cumulative contributions of S$23.88bn. The investment mix shows how large a role insurance plays.
| Asset type (MOF classification) | Share of SRS investment portfolios, Dec 2025 |
|---|---|
| Shares, REITs and ETFs | 24% |
| Others (Singapore Government Securities, corporate bonds, foreign-currency deposits, fund management) | 23% |
| Cash | 21% |
| Insurance | 20% |
| Unit trusts | 11% |
| Singapore-dollar fixed deposits | 0% |
The insurance share has fallen from 26% in December 2021 to 22% in 2024 and 20% in 2025. MOF's "insurance" category does not separate endowments, annuities and ILPs. The 21% held in cash is worth noting: uninvested SRS cash earns the operator's deposit rate, which is one reason people look at single-premium plans, T-bills or Singapore Savings Bonds inside SRS.
Which insurance policies SRS money can buy
The core eligibility rules come from MOF's SRS FAQ booklet (as of December 2017).
| Rule | What the booklet states | Practical effect |
|---|---|---|
| Premium type | Only single premium products, including recurrent single premium products, for both annuity and non-annuity plans | Regular-premium endowments cannot be paid from SRS |
| Life cover cap | Life cover, including total and permanent disability benefits, capped at 3 times the single premium | Plans are savings-focused; protection must be bought separately |
| Disability feature | Plans can allow a contribution continuation benefit on disability | Some plans keep paying in if you become disabled |
| Excluded products | Critical illness, health and long-term care insurance | These must be bought with other money |
| Nomination | Trust nomination is not allowed | Only revocable nomination; LIA's 2026 nomination guide says the same for SRS and CPFIS policies |
| Acceptance | The decision to accept SRS monies generally lies with the product provider | Not every single-premium plan accepts SRS |
Only the funding and tax wrapper change: guaranteed and non-guaranteed values work as for any other policy, so the benefit illustration guide applies unchanged.
How money moves in and out
Understanding the money flows avoids the most common surprise: policy proceeds do not come to you in cash while the SRS account is open.
- Premium. The single premium is paid from your SRS account to the insurer through the operator bank.
- Maturity of an endowment. The booklet states that cash proceeds on maturity would generally have to be returned to the SRS account. They then sit as SRS cash until you invest or withdraw them.
- Annuity payouts while the account is open. Monthly annuity payouts must be returned to the SRS account before you withdraw them, and are taxed as SRS withdrawals when you take them out.
- After the account is closed or deemed closed. For annuities, the booklet says the SRS member is not allowed to surrender the policy; payouts continue under the life-annuity tax rule described below.
- Withdrawal in the form of investments. Since 1 July 2015 SRS savings can be withdrawn as investments, but the booklet notes that non-divisible investments that include insurance policies cannot be withdrawn this way.
The practical check is the maturity date. An endowment maturing before your statutory retirement age returns money into SRS; you cannot take it out without the penalty unless an exception applies.
How withdrawals are taxed
IRAS sets out four conditions that together determine the tax on SRS money, including money coming back from insurance policies (page updated 3 September 2026).
| Condition | IRAS rule |
|---|---|
| Your retirement age | The statutory retirement age prevailing at the time of your first SRS contribution — 64 for first contributions from 1 July 2026; an earlier, lower age applies to earlier contributors, and later increases do not affect you |
| Before that age | Withdrawals are fully taxable and attract a 5% penalty in most circumstances |
| From that age | 50% of each withdrawal is taxable; penalty-free withdrawals may be spread over 10 years from the first penalty-free withdrawal |
| End of the 10-year window | Remaining balances, apart from life annuities, are deemed withdrawn; this includes endowment policies and term annuities, whose value is deemed withdrawn immediately after the window ends |
Because 50% of each withdrawal is taxable, the tax payable depends on your other income that year; spreading withdrawals can lower the taxable amount in each year. How the rules apply to you depends on your circumstances; this page does not predict a tax outcome.
The life-annuity exception and deemed withdrawal
Insurance products are where the 10-year window matters most.
Life annuities. IRAS states that for investments in life annuities the 10-year withdrawal period does not apply: as long as you continue to receive annuity payments for life, 50% of each year's payments is subject to tax. The SRS operator reports these amounts to IRAS. A life annuity can therefore spread SRS withdrawals well beyond 10 years.
Endowments and term annuities. These do not need to be surrendered at the end of the window, but IRAS treats their surrender value as withdrawn at that point and taxes 50% of it. MOF's booklet says the same. The result can be a tax bill on value you have not received in cash.
| Policy type | Inside the 10-year window | After the window |
|---|---|---|
| Endowment maturing inside the window | Proceeds return to SRS; 50% taxable when withdrawn | — |
| Endowment or term annuity running past the window | Proceeds return to SRS as paid | Surrender value deemed withdrawn and 50% taxed |
| Life annuity | Payouts return to SRS; 50% taxable when withdrawn | 50% of each payout taxed for life |
Common mistakes
Most problems with SRS policies come from timing rather than from the product itself.
- Maturity too early. An endowment that matures before your statutory retirement age returns money into SRS, where an early withdrawal is fully taxable and penalised.
- Wrong premium type. Only single or recurrent single premiums qualify; a regular-premium plan cannot be paid from SRS.
- Expecting protection. Life cover is capped at three times the premium, so an SRS policy does not replace term or whole life cover.
- Trust nomination. It is not allowed on SRS policies; plan the estate with a revocable nomination or other tools.
- Deemed withdrawal. An endowment or term annuity running past the 10-year window is taxed on its surrender value at that point.
- Idle cash. Maturity proceeds left uninvested in SRS earn only the operator's deposit rate.
- Leaving Singapore. Foreigners should check how departure, the withdrawal rules and the policy term fit together.
If you would like help checking whether an SRS-funded plan fits your withdrawal timeline, you can register your needs through the contact options on this site.
Sources and dates
- Supplementary Retirement Scheme — Ministry of Finance (MOF) · 2026-04-15
- SRS FAQ booklet (as of 7 December 2017) — Ministry of Finance (MOF) · 2017-12-07
- Tax on SRS withdrawals — Inland Revenue Authority of Singapore (IRAS) · 2026-09-03
- SRS contributions and tax relief — Inland Revenue Authority of Singapore (IRAS) · 2026 (YA 2026)
- Compiled SRS statistics 2025 — Ministry of Finance (MOF) · 2025-12 (data as at)
- Annuity (recurring annual payments) — Inland Revenue Authority of Singapore (IRAS) · 2026-02-27
- Your Guide to Nomination of Insurance Nominees — Life Insurance Association Singapore · 2026-03