More Singapore citizens and residents are embracing the move to top up their CPF and SRS funds.

In a statement by the CPF Board, a record S$6.7 billion worth of top-ups were made by CPF members in the first seven months of 2025. The number of SRS account holders has also continued to grow, with over 460,000 accounts as of December 2024.

Given the rising popularity of CPF and SRS top-up schemes for tax relief, here is a guide to help you understand their differences and how to decide which to top up to.

What are the differences between CPF and SRS?

CPF contributions are compulsory for working Singaporeans, PRs and their employers to support home ownership, healthcare access, and retirement adequacy. Meanwhile, SRS is voluntary, and serves to complement CPF by offering attractive tax reliefs on SRS top-ups to encourage long-term saving. 

Key differences between CPF and SRS include:

• Interest rates: CPF monies earn between 2.5% to 6.0% per annum (p.a.), while SRS monies earn only 0.05% p.a.
• Liquidity: CPF cannot be withdrawn until you turn 55 years old, unless due to reasons such as reduced life expectancy or citizenship renunciation. Meanwhile, SRS can be withdrawn before retirement age, but with a 5% penalty fee and fully subject to income tax.
• Investment options: There are different investment instruments that you can invest in with your CPF OA, SA and SRS monies. Generally, SRS monies have more flexibility for investing than CPF.

In Singapore, there is a cap on the amount of personal tax relief each individual can enjoy per Year of Assessment (YA), which is S$80,000. In essence, it is the amount of tax relief you can get in totality from cash top-ups to CPF, SRS top-ups and other tax relief schemes like NSman relief or working mother’s child relief.

CPF top-up for income tax relief

You can make cash top-ups to your CPF or your loved ones’ to get tax savings. Note that top-ups have to be made in cash and transfers of funds within CPF do not qualify for tax relief. These top-ups are also irreversible.

1. Make cash top-ups to your MA and SA/RA

You can enjoy up to S$8,000 of tax relief when you make cash top-ups to your CPF. This can be either to your MA, SA (before turning 55 years old) or RA (upon reaching 55). 

The total amount of top-ups, including mandatory contributions from your monthly wage, cannot exceed S$37,740 per year.

The question you may be asking is: Should you top up your MA or SA/RA first?

For those who want to protect your healthcare security, MA will be the obvious choice. Note that the amount in your MA cannot exceed the Basic Healthcare Sum.

On the other hand, if you think your healthcare expenses are well-covered, topping up your SA or RA will give you higher CPF LIFE payouts at retirement. 

2. Make cash top-ups to the CPF accounts of your loved ones

Cash top-ups to your loved ones’ CPF enjoy tax relief of up to S$8,000, on top of the S$8,000 cap for those made to your own CPF account. This means that you can get a total tax relief of S$16,000 for CPF cash top-ups.

At the same time, you are also helping your loved ones get closer to their retirement goals—topping up their CPF accounts early gives them more time to compound, translating to higher monthly allowance when their CPF LIFE payouts start.

Be mindful that cash top-ups to a recipient eligible for the Matched Retirement Savings Scheme (MRSS) are only eligible for tax relief on amounts beyond S$2,000, which is the MRSS grant cap.

Read more: Helping your parents manage their CPF? Here are four things to know

SRS top-up for income tax relief

The SRS top-up limit is S$15,300 for Singapore citizens and permanent residents. The entire top-up amount qualifies for tax relief and is included within the personal tax relief cap of S$80,000 per YA.

Only 50% of the withdrawal amount made on or after the retirement age (determined by the year you put your first dollar in) are taxed. 

For Singaporeans and PRs, SRS top-ups can get them up to S$3,366 in tax savings. As for foreigners, the amount can go up to S$7,854.

Read more: All you need to know about SRS

How should you decide between CPF or SRS top-ups? ‍

When deciding between topping up your CPF or SRS account, it’s essential to consider factors such as your age, financial goals, and retirement needs. Both CPF and SRS top-ups offer tax relief, but each scheme differs in terms of interest rates, liquidity and investment flexibility. 

Here are a few key considerations when deciding whether to top up your CPF and/or SRS, and how to decide between them:

• Tax relief and top-up caps: Be mindful of the maximum contributions and tax reliefs you can receive from each scheme. Plan out how much to top up to your CPF and SRS if you don’t want to exceed the maximum tax reliefs (S$80,000 per YA).
• Liquidity & tax bracket: Consider the value of having cash on hand versus locking it up in either CPF or SRS. The tax saving from CPF or SRS top-ups is less significant if your income tax obligations fall below the 7% tax bracket.
• Withdrawal flexibility: CPF SA monies cannot be withdrawn until you turn 55, and MA monies can only be withdrawn for healthcare purposes. Meanwhile, premature SRS withdrawals are subject to a penalty and tax, but it is still an option if you have urgent need for liquidity.
• Income tax for withdrawals: Remember that SRS is a tax deferral scheme and withdrawals are still subject to income tax, unlike CPF (assuming your CPF top-ups had qualified for tax relief at the point of contribution).
• Age & investment strategy: Younger individuals or those with longer investment horizons may prefer topping up SRS first because the monies have more liquidity and investment flexibility than CPF.
• Comfort with investment risk: Idle SRS savings earn only 0.05% p.a., which isn’t enough to beat inflation. The general advice is to invest your SRS, and if you do so, you will have to be comfortable to take on investment risks. Meanwhile, CPF monies earn risk-free interest.

All in all, you should be weighing your decision not just with the benefits and limitations of CPF and SRS, but also your personal circumstances and comfort levels with investment risks. 

When doing financial planning, consider your wealth across all funding sources, ensuring you have met your liquidity and growth goals.

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