You may withdraw funds from your SRS account any time. Withdrawals can be made:
- in cash;
- in the form of investments for the qualifying types of withdrawal.
Withdrawals in the form of monies or investment from your SRS Account are subject to income tax and added to your other taxable income (e.g. employment, rental). It will be taxed based on the prevailing tax rate. The time and circumstances of the withdrawal determine the taxable amount of the withdrawal.
When a foreigner or Singapore Permanent Resident withdraws from his SRS account, the withdrawal is subject to withholding tax.
On this page:
10-year withdrawal period
You may make penalty-free withdrawals from your SRS account over 10 years starting from the date of your first penalty-free withdrawal.
Withdrawals are penalty-free only if they take place on or after the statutory retirement age (63 effective from 1 Jul 2022) that was prevailing at the time of your first SRS contribution (i.e. prescribed retirement age). If you have already opened an SRS account and made your first contribution, any subsequent change in the statutory retirement age (e.g. up to age 65) will not affect you.
Withdrawals from SRS accounts are subject to tax in the Year of Assessment following the year of withdrawal. You need not declare the withdrawal in your Income Tax Return as it will be included in your tax assessment based on information provided by the SRS operator. The amount is subject to tax based on the tax rate applicable to you. If you are a non-Singaporean who no longer works and lives in Singapore, you will be taxed as a non-resident when you withdraw the fund from your SRS account.
As the tax benefits under the SRS are given to incentivise saving for retirement, withdrawals made before the prescribed retirement age may result in penalties being imposed in most circumstances except those made under exceptional circumstances as follows:
- Death
- Medical Grounds
- Bankruptcy; and
- Full withdrawal of the SRS balance by a foreigner (subject to conditions).
Example 1: First withdrawal at statutory retirement age
SRS member A started his first penalty-free withdrawal on 1 Apr 2023 (at age 62). The statutory retirement age prevailing at the time of his first SRS contribution was 62. He may spread his withdrawals until 31 Mar 2033 as follows:
| Year | Period |
|---|---|
| 1 | 1 Apr 2023 to 31 Mar 2024 |
| 2 | 1 Apr 2024 to 31 Mar 2025 |
| 3 | 1 Apr 2025 to 31 Mar 2026 |
| 4 | 1 Apr 2026 to 31 Mar 2027 |
| 5 | 1 Apr 2027 to 31 Mar 2028 |
| 6 | 1 Apr 2028 to 31 Mar 2029 |
| 7 | 1 Apr 2029 to 31 Mar 2030 |
| 8 | 1 Apr 2030 to 31 Mar 2031 |
| 9 | 1 Apr 2031 to 31 Mar 2032 |
| 10 | 1 Apr 2032 to 31 Mar 2033* |
* 31 Mar 2033 marks the end of his withdrawal period.
Balance in SRS account
The balance in your SRS account is made up of your SRS contribution and investment returns accumulated over the years.
The amount (except for life annuities) in the SRS account will be deemed to be withdrawn immediately after the end of the 10-year withdrawal period. If the SRS member has insurance policies such as endowment policies and term annuities in his SRS account at the end of the 10-year withdrawal period, he does not need to close his SRS account or surrender his insurance policies. The value of the insurance policies (i.e. based on the surrender values determined by the insurance companies) together with the cash and market value of other investments in the SRS account will be deemed to be withdrawn.
The SRS operator will report 50% of such balance to IRAS and this is subject to tax in the following year.
For investments in life annuities, the 10-year withdrawal period does not apply. So long as you continue to receive your annuity payments for life, 50% of the annuity payments will be subject to tax each year.
Balance in SRS account after deemed withdrawal
You may withdraw the balance from the SRS account at the end of the withdrawal period.
If you choose not to withdraw the balance but to leave the balance with the SRS operator, future returns from the investments will be subjected to the same tax treatment as any other investments.
Types of withdrawals
| Type of withdrawal | Amount subject to tax | 5% penalty imposed? | |
|---|---|---|---|
| Penalty-free withdrawal | Withdrawal on or after prescribed retirement age (withdrawal can be spread over 10 years from the date of first penalty-free withdrawal) | 50% of withdrawal sum | No |
| Withdrawal on medical ground (physical or mental incapacity; partial withdrawal on grounds of terminal illness) | 50% of withdrawal sum | No | |
| Withdrawal in full due to terminal illness | 50% of full withdrawal sum less an exempt amount of up to $400,000 | No | |
| In the event of bankruptcy | 100% of withdrawal sum | No | |
| Withdrawal in one lump sum by a foreigner (with at least 10 years holding period) | 50% of lump sum | No | |
| Other withdrawals | Early withdrawals before prescribed retirement age | 100% of withdrawal sum | Yes |
Withdrawal on or after prescribed retirement age
To encourage individuals to withdraw their SRS savings on or after the statutory retirement age that was prevailing at the time of their first SRS contribution, the Government grants a 50% tax concession for such withdrawals (i.e. only 50% of the withdrawal is subject to tax). Such withdrawals also do not attract a 5% penalty.
Spreading out your withdrawals will generally result in greater tax savings.
Example 2: Withdrawal on or after prescribed retirement age
The date of birth of SRS member B is on 1 Mar 1960. He has no taxable income (e.g. employment, rental) from age 63. He made his first penalty-free withdrawal on 1 Apr 2023 (at age 63) and the amount standing in his SRS account was $400,000. He withdraws his SRS monies on 1 Apr every year. The statutory retirement age prevailing at the time of his first SRS contribution was 62 years old.
SRS member B withdraws $40,000 per year.
Only 50% (i.e. $20,000) of the yearly withdrawal amount is regarded as taxable income. Taking Year of Assessment (YA) 2024 as an example, no tax needs to be paid as the tax rate is zero for the first $20,000 of the individual's chargeable income.
| YA | Withdrawal amount | Withdrawal amount subject to tax (50%) | Tax payable |
|---|---|---|---|
| 2024 | $40,000 | $20,000 | $0 |
| 2025 | $40,000 | $20,000 | $0 |
| 2026 | $40,000 | $20,000 | $0 |
| 2027 | $40,000 | $20,000 | $0 |
| 2028 | $40,000 | $20,000 | $0 |
| 2029 | $40,000 | $20,000 | $0 |
| 2030 | $40,000 | $20,000 | $0 |
| 2031 | $40,000 | $20,000 | $0 |
| 2032 | $40,000 | $20,000 | $0 |
| 2033 | $40,000 | $20,000 | $0 |
Withdrawal on medical grounds (e.g. physical/mental incapacity and partial withdrawal on grounds of terminal illness)
If you are physically or mentally incapacitated and not able to continue in any employment or you have a terminal illness, you may withdraw your SRS savings at any time. 50% of the amount withdrawn is subject to tax. The penalty for early withdrawal does not apply.
You and the qualified medical practitioner currently registered under the Medical Registration Act are required to complete the Application for Penalty-Free Premature Withdrawal of Funds from SRS Account on Medical Grounds (DOC, 76KB).
Withdrawal in full on terminal illness and deemed withdrawal on death
Currently, an SRS member can withdraw up to $40,000 per year# from his SRS account tax-free on or after the statutory retirement age that was prevailing at the time of his first SRS contribution, if he has no other taxable income and relief. Over the 10-year withdrawal period, he can withdraw up to $400,000 ($40,000 per year x 10 years) tax-free. However, if an SRS member made a full withdrawal on the grounds of terminal illness or passes away before completing his SRS withdrawals, he would not be able to enjoy the full benefit from spreading out his SRS withdrawals over a 10-year period.
Hence, from Year of Assessment 2016, a tax exemption of up to $400,000 would be granted for SRS funds withdrawn in full on the grounds of terminal illness or deemed withdrawn upon an SRS member's demise. This is to ensure that SRS members are not unduly disadvantaged due to terminal illness or death.
If an SRS member passes away, any sum standing in his SRS account shall be deemed to be withdrawn on the date of his death.
SRS members who have not started the 10-year withdrawal period will enjoy the full tax exemption of $400,000.
Otherwise, the exemption amount will be adjusted based on the prior withdrawals made, and the number of years remaining in the 10-year withdrawal period.
50% of any remaining amount of such a full or deemed withdrawal would then be subject to tax i.e. 50% of {full or deemed amount withdrawn on death - [amount exempt from tax or adjusted exemption amount - amount withdrawn on medical/retirement ground in year of full withdrawal/death (capped at $40,000)]} is subject to tax.
# the amount withdrawn subject to tax is 50% of $40,000 which is $20,000. The tax payable on first $20,000 of chargeable income is Nil.
The SRS operator needs to submit the Notification to IRAS of Full Withdrawal of Funds from SRS on Grounds of Terminal Illness (DOCX, 48KB).
Example 3: Computation for full withdrawal on terminal illness (no prior penalty-free withdrawal)
SRS member, Mr Tan has $300,000 savings in his SRS account. In 2023, he made his first penalty-free SRS withdrawal, which is a full withdrawal of all the funds (i.e. $300,000) standing in the SRS account, on the grounds that he has a terminal illness. The tax treatment of his SRS withdrawal is as follows:
50% x {full withdrawal amount - [amount exempt from tax - any withdrawal on medical/retirement grounds in 2023 (capped at $40,000)]}
As Mr Tan has not made any penalty-free withdrawal on grounds of retirement or partial withdrawal on medical grounds prior to this withdrawal in full on terminal illness, the amount that is exempted from tax is $400,000 ($40,000 x 10 years).
Since the amount of $300,000 withdrawn is less than the exemption threshold of $400,000, the full amount is not taxable.
Example 4: Computation for full withdrawal on terminal illness (with a prior penalty-free withdrawal in the past year)
SRS member, Mr Lim made his first penalty-free withdrawal of $30,000 from his SRS account on medical ground in 2022. In 2023, he made a full withdrawal of all funds standing in his SRS account (i.e. $400,000), on the grounds that he has a terminal illness.
The tax treatments of his SRS withdrawals are:
Medical ground (not full withdrawal) for Year of Assessment 2023
50% x $30,000 (i.e. $15,000) is subject to tax
Tax on first $20,000 of chargeable income is Nil. Assume that he has no other income, no tax is payable on the amount $30,000 withdrawn.
Medical ground (full withdrawal on terminal illness) for Year of Assessment 2024
50% x {full withdrawal amount - [adjusted exemption amount - any withdrawal on medical/retirement grounds in 2023 (capped at $40,000)]}
| Full amount withdrawn | $400,000 | |
|---|---|---|
| Less: Adjusted exemption amount* | $360,000 | |
| Less: Amount withdrawn on medical/retirement ground in year of full withdrawal | NIL | ($360,000) |
| Net amount | $40,000 | |
| 50% of the net amount is subject to tax | $20,000 ($40,000 x 50%) |
* Mr Lim first commenced his 10-year penalty-free withdrawal period in calendar year 2022. For subsequent penalty-free withdrawals after 2022, he is able to make such withdrawals (of up to $40,000 per annum tax-free if he has no other income) from 2023 to 2031 i.e. 9 remaining years of the 10-year withdrawal period. Thus, adjusted amount that is exempt from tax is $360,000 ($40,000 x 9 years).
Example 5: Computation for full withdrawal on terminal illness (with a prior penalty-free withdrawal in the current year)
SRS member, Mr Wong made his first penalty-free withdrawal of $50,000 from his SRS account on medical ground in Aug 2023. In Dec 2023, he made a full withdrawal of all funds standing in his SRS account (i.e. $400,000) on the ground that he has a terminal illness.
The tax treatments of his SRS withdrawals are:
Medical ground (not full withdrawal) for Year of Assessment 2024
50% x $50,000 i.e. $25,000 is subject to tax
Medical ground (full withdrawal on terminal illness) for Year of Assessment 2024
50% x {full withdrawal amount - [amount exempted from tax - any withdrawal on medical/retirement grounds in 2022 (capped at $40,000)]}
| Full amount withdrawn | $400,000 | |
|---|---|---|
| Less: Amount exempted from tax* | $400,000 | |
| Less: Amount withdrawn on medical/retirement ground in 2023 (capped at $40,000) | ($40,000) | ($360,000) |
| Net amount | $40,000 | |
| 50% of the net amount is subject to tax | $20,000 ($40,000 x 50%) |
* As Mr Wong has not made any penalty-free withdrawal on grounds of retirement or partial withdrawal on medical grounds in the years prior to year of withdrawal in full on terminal illness, the amount exempt from tax is $400,000 ($40,000 x 10 years).
Total amount withdrawn subject to tax for Year of Assessment 2024 is $25,000 + $20,000 = $45,000.
Example 6: Computation for deemed withdrawal on death (no prior penalty-free withdrawal)
SRS member, Mr Koh had $200,000 savings in his SRS account when he passed away on 8 Jan 2023. He had not made any penalty-free withdrawal on medical ground before his death. The tax treatment of his deemed withdrawal amount of $200,000 on his death is:
50% x {full withdrawal amount - [amount exempted from tax - any withdrawal on medical/retirement grounds in 2023 (capped at $40,000)]}
As Mr Koh has not made penalty-free withdrawal on medical grounds prior to his death, the amount that is exempt from tax is $400,000 ($40,000 x 10 years).
Since the deemed withdrawal amount of $200,000 is less than the exemption threshold of $400,000, the full amount is not taxable.
Example 7: Computation for deemed withdrawal on death (with prior penalty-free withdrawal)
SRS member, Mark made his first penalty-free withdrawal of $40,000 from his SRS account after reaching prescribed retirement age of 62 in 2021. He did not make any withdrawal in 2022 as he has employment income of $50,000 from teaching part-time. He passed away on 1 Aug 2023 and amount standing in his SRS account deemed to be withdrawn on his death is $360,000.
The tax treatments of his SRS withdrawals are:
Withdrawal on grounds of retirement for Year of Assessment 2022
50% x $40,000 (i.e. $20,000) is subject to tax
Tax on first $20,000 of chargeable income is Nil. Assume that he has no other income, no tax is payable on the amount $40,000 withdrawn.
Deemed withdrawal upon death for Year of Assessment 2024
50% x {amount deemed withdrawn - [adjusted exemption amount - amount withdrawn on medical ground/retirement in 2023 (capped at $40,000)]}
| Full amount withdrawn | $360,000 | |
|---|---|---|
| Less: Adjusted exemption amount* | $320,000 | |
| Less: Amount withdrawn on medical/retirement ground in 2023 | NIL | ($320,000) |
| Net amount | $40,000 | |
| 50% of the net amount is subject to tax | $20,000 ($40,000 x 50%) |
* Mark commenced his 10-year withdrawal period in 2021. When he passed away on 1 Aug 2023, he had 8 remaining years of the 10-year withdrawal period (i.e. 2023 to 2030). The adjusted exemption amount is $320,000 ($40,000 x 8 years).
Withdrawal in the event of bankruptcy
You may apply to withdraw your SRS savings on grounds of bankruptcy if you are bankrupt. 100% of the amount withdrawn is subject to tax. The penalty for early withdrawal does not apply.
The SRS operator needs to submit the Application for Penalty-Free Premature Withdrawal of Funds from SRS Account upon Bankruptcy (PDF, 78KB).
Withdrawal of lump sum by a foreigner (with at least 10-years holding period)
If you are a foreigner, you may apply to withdraw your SRS savings without penalty and have 50% of the amount fully withdrawn subject to tax if you:
- are neither a Singapore Citizen nor a Singapore Permanent Resident on the date of withdrawal and for a continuous period of 10 years preceding the date of withdrawal; and
- have maintained your SRS account for at least 10 years from the date of your first SRS contribution; and
- make a one-time full withdrawal from your SRS account.
Withdrawal before prescribed retirement age
You may withdraw your SRS savings anytime, although early withdrawals are fully subject to tax and attract a 5% penalty.
SRS operator will complete Form PMP to account for the penalty on early withdrawal by Singapore Citizens and Form IR37B for Singapore Permanent Residents and foreigners. These forms are available as S45 Offline Data-Entry Import Template.
Example 8: Early withdrawal
The date of birth of SRS member C is 1 Mar 1962. He has no taxable income (e.g. employment, rental) from age 60. He withdraws his SRS monies on 1 Apr every year starting from 1 Apr 2023 at age 61. The amount standing in his SRS account at that time was $400,000. The statutory retirement age prevailing at the time of his first SRS contribution was 62.
| YA | Age | Withdrawal amount | Withdrawal amount subject to tax (50%) | Penalty (5%)# |
|---|---|---|---|---|
| 2024 | 61 | $40,000 | $40,000* | $2,000 |
| 2025 | 62 | $40,000 | $20,000^ | $0 |
| 2026 | 63 | $40,000 | $20,000^ | $0 |
| 2027 | 64 | $40,000 | $20,000^ | $0 |
| 2028 | 65 | $40,000 | $20,000^ | $0 |
| 2029 | 66 | $40,000 | $20,000^ | $0 |
| 2030 | 67 | $40,000 | $20,000^ | $0 |
| 2031 | 68 | $40,000 | $20,000^ | $0 |
| 2032 | 69 | $40,000 | $20,000^ | $0 |
| 2033 | 70 | $20,000 | $10,000^ | $0 |
| 2034 | 71 | $20,000 | $10,000^ | $0 |
# 10-year penalty-free retirement withdrawal period starts from age 62 (i.e. YA 2025 to YA 2034).
* As the withdrawal at age 61 is an early withdrawal, 100% of the amount withdrawn is taxable. In addition, a 5% penalty is applicable.
^ Only 50% of the withdrawal amount is regarded as taxable income as he withdrew the amount after attaining the age of 62 years.
Annuity payments
Before the SRS account is closed or deemed to be closed*, annuity payments will be made to the SRS account and will not be taxed if no SRS withdrawal is made. After the SRS account is closed or deemed closed, 50% of the annuity payments will be subject to tax.
*SRS account is deemed closed at the 10th year of the 10-year withdrawal period.
Withdrawals in the form of investments
SRS members who meet the qualifying conditions can apply to their SRS operators to withdraw investments from their SRS accounts without having to liquidate their investments. This is applicable for the following types of penalty-free withdrawals:
- withdrawal on or after the statutory retirement age prevailing at the time of an SRS member's first contribution (prescribed retirement age);
- withdrawal on medical grounds;
- withdrawal in full by a foreigner who has maintained his SRS account for at least 10 years from the date of his first contribution; and
- actual withdrawal from an SRS account that is deemed to be closed (e.g. after the end of the 10-year withdrawal period or the death of the SRS member).
You may refer to the Ministry of Finance’s website for the FAQs on SRS withdrawals and SRS investments.
Withholding tax on SRS withdrawals
There is no withholding tax on SRS withdrawals made by Singaporean account holders.
If a foreigner or Singapore Permanent Resident (SPR) has applied to withdraw cash/investment from his SRS account, 50% or 100% of the withdrawn amount, depending on the type of the withdrawal, will be subject to a withholding tax.
The SRS bank operator will:
- Withhold an amount of tax at the prevailing non-resident tax rate of 24% (22% for withdrawal from 1 Jan 2016 to 31 Dec 2022) at the point of withdrawal. This amount will be remitted to IRAS.
- Deduct a 5% penalty on any premature withdrawals. The 5% penalty is non-refundable and is separate from the withholding tax.
- Electronically transmit the information on the withdrawal and pay the withholding tax to IRAS.
Example 9: Computation of withholding taxes
Scenario 1:
Mr Chan (a foreigner) made a withdrawal of $300,000 from his SRS account in 2023 after his retirement age.
Amount withdrawn | $300,000 |
50% of withdrawal subject to tax | 50% x $300,000 = $150,000 |
| Withholding tax at 24% | 24% x $150,000 = $36,000 |
Net amount received by Mr Chan | $300,000 - $36,000 = $264,000 |
Scenario 2:
Mr Tan (an SPR) made a withdrawal of $300,000 from his SRS account in 2023 before his retirement age, which resulted in a 5% penalty imposed.
Amount withdrawn | $300,000 |
100% of withdrawal subject to tax due to premature withdrawal | 24% x $300,000 = $72,000 |
| 5% penalty due to premature withdrawal | 5% x $300,000 = $15,000 |
Net amount received by Mr Chan | $300,000 - $72,000 - $15,000 = $213,000 |
Concessionary Withholding Tax Rate
The concessionary withholding tax rate of 15% will apply if the following conditions are met:
- Cumulative amount withdrawn by the foreigner or SPR from his SRS account in the calendar year does not exceed $200,000; and
- The foreigner or SPR does not have any other income besides the SRS withdrawal(s) during the calendar year when the withdrawal(s) is/are made.
To enjoy this concession, the SRS account holder must declare that he fulfils the 2 conditions above using the Form IR37B(1). The Form IR37B(1) is available with the SRS operator.
Withholding tax is not the final tax payable
If the foreigner or SPR is a Singapore tax resident, the actual tax payable on the SRS withdrawal will be based on the progressive resident rates.
For a non-resident, the actual tax payable on the SRS withdrawal will be 15% or the progressive resident rates, whichever is higher.
Applying for a refund
Tax withheld on the SRS withdrawal is a tax credit that will be used to offset your actual tax liability. Any unused tax credit will be refunded to you.
Please file an Income Tax Return during the e-Filing period (1 Mar to 18 Apr) in the year following the year of tax withheld, via myTax Portal, for the actual tax liability to be computed and unused tax credits to be refunded.
Example 10: Computation of refund
Assuming the actual tax rate applicable for the SRS withdrawal is finally determined to be 15% and you have no other tax liability, the refund you will receive (for withholding tax paid in 2023) is calculated as follows:
SRS withdrawn | $300,000 |
Amount subject to tax at 50% | 50% x $300,000 = $150,000 |
| Withholding tax at 24% | 24% x $150,000 = $36,000 |
| Actual tax rate applicable at 15% | 15% x $150,000 = $22,500 |
Amount of refund you will receive | $36,000 - $22,500 = $13,500 |
For Foreigners and Singapore Permanent Residents
If you are leaving your employment and leaving Singapore, and have made withdrawal in the year of departure, you must obtain a SRS statement of contributions/withdrawal (for tax clearance) (DOC, 77KB) from the SRS bank operator specifically for the purpose of tax clearance.
FAQs
I am a foreigner who started contributing to SRS at the age of 55. Will I be allowed to withdraw SRS contribution without penalties, at the age of 62? Do I need to wait for 10 years to make a penalty-free withdrawal?
Any SRS member, regardless of whether he is a foreigner or not, may withdraw his SRS without penalties at the age of 62, if that is the statutory retirement age prevailing at the time of his first contribution.
What is the rationale for allowing withdrawal of investment products for the 4 specific types of withdrawal, which qualifies for the 50% tax concession?
This is to allow SRS members to hold their SRS investments outside of the SRS scheme without having to incur the transaction costs to first liquidate their SRS investments (so as to withdraw cash from their SRS accounts) and thereafter re-purchase the same investments outside of the SRS scheme.
Can I nominate a beneficiary for my SRS funds?
No. We do not have a provision in the SRS allowing for the nomination of a beneficiary of an SRS account. This is because SRS savings are meant for the SRS members’ own retirement purposes. However, if the SRS member passes away, the SRS balances will form part of his estate and will be distributed according to his will or the law (if a will does not exist). There will be no 5% penalty on withdrawal and only 50% of the sum standing in the SRS account after deducting the amount of deemed withdrawal upon death that is exempt from tax will be subject to income tax.
Please also note that SRS bank operators may require the Grant of Probate or Letters of Administration to be produced by the executor or administrator of the estate to ensure that the assets in the SRS are distributed correctly.