Farah Ismail, 39, is an operations manager with chargeable income of $100,000 a year. In October 2026 she opened a Supplementary Retirement Scheme (SRS) account and paid in $15,300 to cut her tax. A month later her statement showed the full $15,300 still sitting as cash, and she began to look at what the money could be invested in.
Contributors receive the tax relief when the money goes in, whether or not it is invested. The Ministry of Finance (MOF) allows SRS money to buy most listed securities, government bonds, fixed deposits and some insurance, but it does not invest the money on the account holder's behalf. Cash left in the account earns close to nothing.
Farah plans to pay in the $15,300 yearly cap for Singapore Citizens and Permanent Residents for 20 years, a total of 20 × $15,300 = $306,000. Invested at an assumed 4% a year, the same contributions would grow to about $455,600. This article follows her through what SRS allows, how the choices differ by timeline and how her withdrawals will be taxed.
What Can Her SRS Money Buy?
According to the MOF SRS page (checked 30 September 2026), SRS funds can be invested in:
- Shares
- Unit trusts
- Bonds, including Singapore Government Securities
- Fixed deposits
- Exchange-traded funds (ETFs)
- Certain life insurance products, subject to limits
Direct property investment is not allowed. Purchases are made through the SRS operator bank, DBS, OCBC or UOB, or through a broker or fund platform that accepts SRS money and settles with that bank. Farah's account is with her own bank, so she can buy through its app or link a broker to it.
How Much Does Leaving It As Cash Cost Her?
The table shows $15,300 contributed at the end of each year for 20 years, at four assumed returns. The returns are assumptions for illustration and are not the result of any product.
| $15,300 a year for 20 years | Balance after 20 years | Growth above the $306,000 contributed |
|---|---|---|
| Cash, earning close to nothing | About $306,000 | About $0 |
| 2% a year | About $371,700 | About $65,700 |
| 4% a year (Farah's plan) | About $455,600 | About $149,600 |
| 6% a year | About $562,800 | About $256,800 |
Source: MOF contribution cap; the returns are assumptions
At 4% a year, Farah's invested balance would be about $149,600 higher than the same money left as cash. Her tax saving is smaller. At $100,000 of chargeable income, in the 11.5% band, she saves $15,300 × 11.5% = $1,760 of tax a year, or $35,200 over 20 years.
Read Also: SRS Or CPF Cash Top-Up: Which Cuts More Tax In 2026?
How Long Does Her Money Have?
The SRS withdrawal age is the statutory retirement age on the day of the first contribution. According to the Inland Revenue Authority of Singapore (IRAS) (checked 30 September 2026), the statutory retirement age rose to 64 on 1 July 2026. Farah's first contribution in October 2026 therefore fixes her withdrawal age at 64.
An account holder can withdraw without penalty from that age and can spread withdrawals over ten years from the first one. Farah's money has two timelines, the 25 years until she turns 64 and up to ten years of withdrawals after it.
Which Investments Suit Each Timeline?
| Years until the money is needed | Options within SRS | Main risk |
|---|---|---|
| Under 2 | T-bills, Savings Bonds, fixed deposits | Rates change at each renewal |
| 2 to 10 | Savings Bonds, bond funds, a mix of bonds and equities | Bond prices fall when rates rise |
| Over 10 (Farah) | Equity ETFs or unit trusts, shares | Large falls in some years |
Source: MOF list of SRS investments; the timelines are a general guide
With 25 years to go, Farah is in the last row, where an equity fund can recover from a fall before the money is needed. A colleague who is three years from his own withdrawal age is in the first row. He keeps his SRS money in T-bills and Savings Bonds, which return the principal on a known date.
Can SRS Buy T-Bills And Savings Bonds?
According to the Monetary Authority of Singapore (MAS), applications for both can be paid from SRS through the operator bank. For a T-bill, MAS states that SRS funds are earmarked when the application is made and deducted within one to three business days after the auction. The table below compares the latest T-bills and Savings Bond in the MAS issuance calendar.
| Issue | Code | Auction or issue date | Return a year |
|---|---|---|---|
| 6-Month T-bill | BS26118E | 10 September 2026 | 1.70% |
| 1-Year T-bill | BY26102T | 23 July 2026 | 1.68% |
| Savings Bond Oct 2026, held one year | GX26100Z | 1 October 2026 | 1.65% |
| Savings Bond Oct 2026, held ten years | GX26100Z | 1 October 2026 | 2.32% |
Source: MAS, issuance calendar as published on 22 September 2026
Savings Bonds bought with SRS can be redeemed in any month, and the principal and interest go back into the SRS account. T-bills bought with SRS pay their discount into the account at the start and the face value at maturity. A Savings Bond held within SRS counts towards the $200,000 limit MAS applies to each individual's Savings Bond holdings, together with any bought with cash.
Read Also: Singapore Savings Bonds Vs T-Bills Vs Fixed Deposits: Which Pays More In 2026?
Is Her SRS Cash Protected?
According to the Singapore Deposit Insurance Corporation (SDIC) (checked 30 September 2026), SRS money is insured together with the depositor's savings, current and fixed deposit accounts, up to $100,000 in total per depositor per member bank. Securities bought with SRS money, such as shares, ETFs and bonds, are investments and are not covered by deposit insurance.
Farah's $15,300 of SRS cash counts towards the same $100,000 as her savings account at that bank. Once she buys an ETF, that part of her SRS money is outside deposit insurance and can fall in value.
How Will Her Withdrawals Be Taxed?
MOF states that investment returns inside SRS are not taxed before withdrawal. On or after the SRS withdrawal age, only 50% of each withdrawal is taxable, according to IRAS.
From 64, Farah can spread her balance over ten years of withdrawals. Half of each withdrawal is added to her income for that year, so any gain made inside SRS is taxed on the same terms as the money she paid in.
Read Also: How Much Tax Do You Pay When Withdrawing From Your SRS Account?
Read Also: See Your SRS Balance Alongside Your Retirement Plan In Cashmere Pocket
What Did Farah Invest In?
Farah put her $15,300 into a broad equity ETF through her operator bank, and she plans to invest each year's contribution the same way. In her last few years before 64 she will move towards bonds, Savings Bonds and fixed deposits. At an assumed 4%, her 20 contributions of $15,300 would reach about $455,600, which is $149,600 more than cash, on top of about $35,200 of tax saved.
Account holders who are more than ten years from their SRS withdrawal age have the longest horizon in the scheme, and a broad equity ETF or unit trust fits that horizon. Those within a few years of withdrawing can use T-bills, Savings Bonds and fixed deposits. Leaving SRS money as cash keeps the tax relief and gives up the growth, and the right mix depends on each account holder's years to withdrawal, other savings and tolerance for falls in value.