SRS withdrawal: rules and how they are taxed

When can you make a penalty-free SRS withdrawal?

Singapore's Supplementary Retirement Scheme (SRS) lets you withdraw penalty-free once you reach the statutory retirement age that applied in the year you made your first SRS contribution. IRAS calls this your "prescribed retirement age."

This distinction matters because Singapore's statutory retirement age has been rising. It moved from 62 to 63 on 1 Jul 2022, and rises again to 64 from 1 Jul 2026, with the Government targeting a further increase to 65 by 2030. Whichever age applied when you opened your account and made your first top-up is the one that sticks, regardless of later changes.

If you're only opening an SRS account after 1 July 2026, your withdrawal age is 64—not 63. Anyone who already made a contribution keeps whatever age was locked in when they started.

Once you reach your prescribed retirement age, you don't need to withdraw everything at once. You have a 10-year window from the date of your first penalty-free withdrawal to spread out the rest, and any investments inside your SRS account don't need to be sold—transferring them out of the account still counts as a withdrawal.

How much tax do you pay when you withdraw at the right age?

On or after your prescribed retirement age, only 50% of each withdrawal is added to your taxable income for that year—IRAS's way of rewarding you for waiting.

Because Singapore's tax rates are progressive, and the first S$20,000 of chargeable income is taxed at 0%, spreading withdrawals over the 10-year window could keep much of your SRS savings out of tax altogether.

Consider this hypothetical example for illustrative purposes only: a retiree who withdraws S$40,000 a year with no other taxable income. Only S$20,000 of that counts as chargeable income, which falls entirely within the 0% tax band. Withdraw the same S$400,000 in one lump sum instead, and half of it—S$200,000—gets taxed at the higher marginal rates that apply to a much larger chargeable income.

The pace of your withdrawals is the real SRS planning decision. Growing your balance before you start withdrawing, through a suitable SRS investment strategy, gives you more room to stagger withdrawals—and more of the eventual sum escapes tax.

What happens if you withdraw before your SRS withdrawal age?

Withdraw before your prescribed retirement age, and the SRS withdrawal rules turn considerably less generous: the entire amount becomes taxable, and IRAS adds a 5% penalty on top. Early withdrawals must be made in cash, which means liquidating any investments first.

The 5% penalty is non-refundable, and it applies regardless of how small the withdrawal is or what you plan to use the money for. If your circumstances have genuinely changed, it's worth checking whether you qualify for one of the narrow exceptions before withdrawing early—covered next.

Are there exceptions to the early-withdrawal penalty?

IRAS makes a small number of exceptions for circumstances outside your control:

• Medical grounds. Withdrawals due to physical or mental incapacity, or a partial withdrawal on grounds of terminal illness, are taxed at the same 50% rate as a normal retirement-age withdrawal, with no penalty.
• Terminal illness (full withdrawal). You can withdraw your full SRS balance, with 50% of the amount taxed after an exempt amount of up to S$400,000.
• Death. Your SRS savings are deemed withdrawn and distributed as part of your estate, with the same tax exemption of up to S$400,000 that applies to terminal illness.
• Bankruptcy. The full withdrawal amount is taxable, but no 5% penalty applies.

Each exception requires supporting documentation from your SRS operator—DBS, OCBC, or UOB—before funds are released.

How does SRS account withdrawal work if you're a foreigner?

If you're a foreigner (not a PR), SRS account withdrawal runs on a different clock: eligibility depends on how long you've held the account. You can make a full, penalty-free withdrawal once you've held your SRS account for at least 10 years from the date of your first contribution—more detail is in our dedicated guide to SRS for foreigners. Singapore Permanent Residents (PRs), however, follow the same age-based system as citizens.

Where PRs and foreigners align, though, is on how tax is collected. IRAS withholds tax upfront on SRS withdrawals made by any non-citizen—foreigner or PR—at the prevailing non-resident rate of 24%, or a concessionary 15% if your cumulative withdrawals for the year stay under S$200,000 and you have no other income that year. Citizens face no withholding at all—the SRS operator reports the withdrawal to IRAS, which includes it directly in your annual tax assessment.

This withholding tax acts as a credit against your final tax bill. IRAS refunds the difference if your actual tax liability turns out lower—for instance, if you qualify for the 15% concessionary rate instead of the standard 24%.

How do you withdraw from your SRS account?

When you're ready, the process itself is straightforward:

1. Log in to your SRS account through your SRS operator—DBS, OCBC, or UOB—via their internet banking platform or app.
2. Submit a withdrawal instruction, specifying the amount and whether it's cash or investments you'd like to withdraw.
3. If you hold investments, decide whether to liquidate them or transfer them out in kind; either counts as a withdrawal for tax purposes.
4. Your SRS operator reports the withdrawal to IRAS, which reflects it in your tax assessment for the following Year of Assessment—you don't need to declare it yourself.

Because your first penalty-free withdrawal closes the door to further contributions, it's worth deciding whether to keep growing your balance a little longer before you submit that first instruction.

Withdrawing well deserves the same planning as topping up

Topping up your SRS account is usually a deliberate decision, timed for a specific tax outcome. Withdrawing from it deserves the same deliberateness: a plan built around your actual income needs, timed to reduce unnecessary tax, and weighed against your CPF and other retirement savings. SRS usually shares the stage with these other tax-advantaged accounts, all drawing on overlapping reliefs and concessions—which is exactly why a withdrawal plan works best as part of your wider wealth picture.

Endowus brings wealth planning together with Cash, CPF and SRS investing, enabling you to create distinct portfolios for different goals and life stages. Each portfolio is tailored to its specific time horizon and risk profile, helping you get financially prepared throughout your journey—all at an all-in Endowus Fee starting from only 0.15%, up to 0.60% p.a (refer to our full pricing page). Get started with Endowus today.

Frequently asked questions about SRS withdrawal

Can I withdraw my SRS before the statutory retirement age?

Yes, but the full amount becomes taxable and a non-refundable 5% penalty applies, except for withdrawals due to death, medical grounds, bankruptcy, or a foreigner's 10-year lump-sum withdrawal.

What is the SRS withdrawal age if I open my account in 2026?

If you make your first SRS contribution from 1 Jul 2026, your penalty-free withdrawal age is 64, following the statutory retirement age increase from 63.

Can I still invest my SRS money after I start withdrawing?

No—once you make your first penalty-free withdrawal, your SRS account is closed to new contributions, though you have up to 10 years to withdraw any remaining balance.

Do I have to withdraw my entire SRS balance at once?

No. You can spread penalty-free withdrawals over 10 years from your first withdrawal, and staggering them generally reduces the total tax you pay.

What happens to my SRS account if I don't withdraw everything within 10 years?

Any remaining balance is deemed withdrawn at the end of the 10-year period, with 50% of it reported to IRAS as taxable income.

What happens to my SRS investments after the 10-year withdrawal period?

‍You may apply to your SRS operator to withdraw investments from your SRS account to your Central Depository (CDP) account without liquidating them (this applies to penalty-free withdrawals only). The investments will be valued by the SRS operator, which will be brought to tax.

If you choose not to withdraw your SRS investments, future returns from the investments will be subjected to the same tax treatment as any other investments.

Source: Ministry of Finance

Is SRS withdrawal tax different for Singapore PRs compared to citizens?

The withdrawal age rules are the same, but PRs have tax withheld at source (24%, or 15% under certain conditions), while citizens have no tax withheld—their withdrawal is simply included in their annual tax assessment.

Can foreigners get a refund on SRS withholding tax?‍

Yes—the withholding tax is treated as a credit against your actual tax liability, and IRAS refunds any excess once your final assessment is determined.