Retirement Top-up Plans Singapore: Understanding Additional Savings Options

Table of Contents


All articles are for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade or investments.


All articles are for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade or investments.

Young family of three celebrating a smart financial decision, symbolizing the benefits of optimizing the Supplementary Retirement Scheme in their living room.

Table of Contents

Introduction – SRS Account Contribution: Tax Relief in Singapore & More

Concerned about accumulating sufficient savings for a comfortable retirement in Singapore, especially with its high cost of living? The article will guide you through Retirement Top-up Plans, SRS contribution benefits, and other supplemental saving options like CPF LIFE payouts and Matched Retirement Savings Schemes (MRSS)

Furthermore, understand the advantages of the personal income tax relief cap associated with SRS contributions. Equip yourself with the necessary tools and strategies to ensure a bright future in your golden years. Dive in with us!

Key Takeaways

  • Retirement top-up plans in Singapore, such as cash top-ups or CPF transfers, can help individuals boost their retirement funds and set aside money for housing and healthcare.
  • By making cash top-ups or transferring to CPF accounts, you can enjoy high interest rates, dollar-for-dollar matching, and tax relief, which can significantly boost your retirement savings.
  • Factors to consider when choosing top-up options include current CPF balance, retirement goals, investment preferences, risk tolerance, and tax benefits.
  • Other additional savings options for retirement in Singapore include the Supplementary Retirement Scheme (SRS), monetizing property for income generation, diversifying savings through investments, and exploring employment options that allow continued earning during retirement.

Young family of three celebrating a smart financial decision, symbolizing the benefits of optimizing the Supplementary Retirement Scheme in their living room.

Understanding Supplementary Retirement Scheme Top-up Plans

In Singapore, retirement top-up plans are a scheme to encourage individuals to save for retirement. These plans allow for making cash contributions or CPF transfers, offering benefits like increasing monthly payouts and optimizing the use of CPF for retirement purposes.

Contributing via cash top-ups or conducting CPF transfers

Let’s look at how you can boost your retirement funds with cash top-ups or CPF transfers.

  • You can add money to your Retirement Sum Topping-Up scheme (RSTU). This is an easy way to save for your old age.
  • If you are under 55 years old, you can get cash top-ups or CPF transfers. You can add up to the Full Retirement Sum (FRS) in your Special Account (SA). In the SA, you can also add up to the Enhanced Retirement Sum (ERS).
  • Making a cash top-up or CPF transfer lets you build up money for old age. It also sets aside funds for housing and healthcare.
  • By adding more money to your CPF, you get tax cuts. You and your boss can cut as much as $8,000 per year off taxes. That is for money added to your SA/RA and/or MediSave Account (MA).
  • The RSTU lets people add cash to help their loved ones and workers grow their retirement stash.
  • People who know about personal finance in Singapore often talk about RSTU. They say it’s a good plan for when we stop working.

Benefits of making cash top-ups

Contributing cash directly to your CPF accounts is a strategic way to amplify your nest egg, especially given the high interest rates. When you add money to your Retirement Account, there’s a dollar-for-dollar matching, bolstering your funds for post-retirement basic living needs.

What’s more, even after turning 65, you can continue to enhance this account. It’s an astute strategy for those aiming for a richer retirement experience. Apart from augmenting your retirement reserves, these top-ups would benefit from tax relief, ensuring a smaller portion of your yearly income is deducted for taxes.

 Moreover, the accumulated funds can be used to purchase various investments, providing another avenue to grow your wealth for the future.

How cash top-ups and CPF transfers work

You can use cash or money from your CPF Ordinary Account to top up. This is done by moving it to your Self or family member’s Special account or Retirement account. The goal is to help you save more for retirement.

There are two methods to achieve this.

The first way is by using cash, and the second way is by transferring money from your CPF Ordinary Account (OA). A key point here is that if you have more than $20,000 in your OA, only then can you move some of this money over.

For the online process, go to the ‘my CPF Online Services‘ section of the ‘CPF website’. Select ‘My Requests’ and choose ‘Building Up My/My Recipient’s CPF savings.’ Then choose either ‘Cash Top-up’ or ‘CPF Transfer’.

Fill out all needed information and send it in. After getting approval from the CPF board, the sum will be shifted into the CPF SA or RA account.

How the money is used

In Singapore, you can open an SRS account to bolster your retirement savings through contributions to the Supplementary Retirement Scheme (SRS). This money can then be invested in diverse options such as stocks, bonds, and unit trusts, allowing it to potentially grow over time.

Accounts are managed by three SRS operators appointed by the government to manage these investments. Notably, the returns from these investments remain tax-free until they’re withdrawn. Once you attain the statutory retirement age of 62, SRS withdrawal can commence, catering to your retirement essentials.

It’s crucial to highlight that withdrawals from SRS are subject to tax, but only 50% of the withdrawn amount is taxable. Thus, making contributions to the SRS not only amplifies your retirement coffers but also provides SRS tax relief, presenting significant tax advantages throughout your saving journey.

Retired couple joyfully walking barefoot along the beach, symbolizing the peaceful and rewarding outcome of successful retirement investment strategies.

Maximizing Investment Payouts

Boosting your monthly retirement payouts is vital to address your basic living needs post-retirement, especially when considering that withdrawals from SRS are taxable.

Delve into the nuances of selecting the optimal top-up options for your Supplementary Retirement Scheme account, and make sure to update the SRS bank operator as required. Recognize the factors to weigh prior to finalizing a top-up and maximize your potential for retirement savings.  

Growing monthly retirement payouts

As you plan for retirement in Singapore, it’s important to think about increasing your monthly payouts. By maximizing your savings and making wise investment choices, you can enhance the amount of money you receive each month during retirement.

For example, if you are 55 years old or older, you can earn an extra 2% interest on the first $30,000 of your combined balances for retirement. This additional interest can make a significant difference in the amount of monthly income you receive.

Additionally, understanding the different CPF LIFE plan options is crucial for determining how much money you will receive each month during retirement. By carefully considering these factors and planning, you can ensure that your retirement funds continue to grow and provide for your needs after leaving the workforce.

Choosing the right top-up options

Participation in SRS is a voluntary scheme, and for a Singapore citizen looking to enhance their retirement savings, choosing the right top-up options becomes crucial. Here are several factors you should weigh when pinpointing the best selections tailored to your needs:

  1. Current CPF balance: Take into account how much CPF savings you already have. This will help determine if you need to make cash top-ups or CPF transfers.
  2. Retirement goals: Consider your desired retirement lifestyle and how much income you will need. This will help determine the amount of top-up needed to achieve your goals.
  3. Investment preferences: If you prefer to invest your retirement savings, consider options like the Supplementary Retirement Scheme (SRS) or other investment-linked plans that allow you to grow your funds while enjoying tax benefits.
  4. Risk tolerance: Assess your risk appetite and choose top-up options that align with your comfort level. For example, if you are more conservative, you may opt for CPF transfers or low-risk investment options.
  5. Tax benefits: Look into the tax relief incentives offered by different top-up schemes. For instance, CPF Cash Top-up Relief provides tax relief when setting aside money in CPF accounts for retirement needs.

Factors to consider before making a top-up

Before deciding to contribute to your SRS account and bolster your retirement savings, there are several vital factors to ponder. As you plan for your basic living needs after retirement, here are some essential points to keep at the forefront:

  1. Current financial situation: Assess your current financial situation and determine if you have enough funds available for the top-up. Think about your earnings, expenditures, and any additional financial commitments you might possess.
  2. Retirement goals: Take into account your retirement goals and how much money you will need to achieve them. Consider factors such as the lifestyle you want to maintain in retirement and any future expenses you anticipate.
  3. Time horizon: Consider how much time you have until retirement. The earlier you start topping up your savings, the longer your contributions have to grow through compound interest.
  4. Risk tolerance: Evaluate your risk tolerance when considering investment options for your top-up. Different investment vehicles carry varying degrees of risk, so it’s important to choose investments that align with your comfort level.

Tax implications: Understand the tax implications of making a top-up. Topping up certain retirement accounts, like the CPF or SRS accounts, can offer tax benefits or relief. Consult with a tax professional for advice on how these contributions may affect your overall tax position.

Young man engaged in a consultation with a financial advisor, discussing CPF retirement optimization techniques, in a modern office overlooking the city.

Tips for Optimizing CPF for Retirement

Optimize your CPF for retirement by topping up to a higher retirement sum, managing CPF contributions, and utilizing the CPF Investment Account. These strategies secure a comfortable retirement.

Topping up to a higher retirement sum

Individuals in Singapore have the option to top up their CPF Special Account (SA) to achieve a higher retirement sum. This can be done through the Retirement Sum Topping-Up Scheme (RSTU).

By making cash top-ups, individuals can earn tax relief and build up their retirement savings. Topping up CPF accounts is highly recommended for effective retirement planning in Singapore.

It allows individuals to enjoy higher monthly payouts or extend the duration of their payout. Cash top-ups can also be made under this scheme to help loved ones and employees grow their retirement savings.

Managing CPF contributions

Managing CPF contributions is an important aspect of retirement planning in Singapore. By understanding how to effectively manage your CPF contributions, you can maximize your retirement savings and ensure a comfortable future.

One way to manage your CPF contributions is through the Retirement Sum Topping-Up Scheme, which allows you to make cash top-ups or transfer CPF savings to your account. This helps increase your retirement income and provides higher monthly payouts.

By actively managing your CPF contributions, you can take control of your retirement planning and secure a better financial future.

Individual placing a coin into a piggy bank, symbolizing the diverse savings options, including SRS contributions, for retirement in Singapore.

Exploring SRS Contribution and Other Retirement Savings Options

As part of the Singapore government’s multi-pronged strategy to secure the retirement of its citizens, various voluntary options have been introduced, allowing individuals to grow their retirement savings. 

From monetizing property and making the most of the CPF Investment Scheme to participating in the Supplementary Retirement Scheme, where contributions are eligible for tax relief, Singaporeans are provided with multiple avenues to ensure a comfortable retirement.

Monetizing property

One of the options to consider for generating retirement income in Singapore is monetizing your property. This means using your property as a source of sustained income during your retirement years.

By unlocking the equity in your home, you can create an additional stream of funds to support your financial needs. Monetizing property has become increasingly popular, particularly with the mandatory savings system in Singapore.

This has created a class of homeowners who have the opportunity to generate income from their properties and secure their retirement future. So, if you own a property and are looking for ways to boost your retirement income, exploring how you can monetize it may be a smart choice.


SRS investments can be a smart way to grow your retirement savings. With the CPF Investment Scheme, you have the option to invest your CPF savings in different investments. This allows you to potentially earn higher returns on your money.

Additionally, the Supplementary Retirement Scheme (SRS) presents a valuable opportunity for investment. By deciding on the appropriate amount of SRS contribution and channeling these SRS savings into investments, you can enhance your retirement income. Furthermore, participating in SRS provides benefits like overall personal income tax relief and maximizes the advantages of your financial planning.

The SRS account provides benefits like tax savings and various investment choices, making it an attractive option for retirement planning. OCBC offers an SRS Account that allows you to contribute and invest your SRS funds for potential wealth growth.

Employment options

Another option to consider for building retirement savings is exploring employment options. The retirement age from 62 is not 63 in Singapore, and even reaching the statutory retirement age, individuals can continue working if they choose to. 

By extending their work life, they can earn additional income that can be used to supplement their retirement funds. This extra income can help cover living expenses or even contribute towards future financial goals.

Working part-time or engaging in freelance projects are adaptable methods to supplement your savings account, allowing for continued income generation while relishing a leisurely pace during the retirement phase. It’s essential to recognize that the decision to continue employment hinges on one’s total personal income tax relief, individual circumstances, and preferences.

Utilizing the CPF Investment Account

The CPF Investment Scheme is a great way to enhance your retirement savings. With this scheme, you can invest your CPF savings in different investment options like stocks and gold.

By utilizing the CPF Investment Account, you have the opportunity to grow your CPF savings and potentially increase your retirement funds. This gives traders and investors a chance to make their money work harder for them while securing a comfortable future.

So if you’re looking to optimize your CPF savings for retirement, consider exploring the investment options available through the CPF Investment Scheme.


In conclusion, embracing savings mechanisms such as Retirement Top-up Plans and the Supplementary Retirement Scheme (SRS) in Singapore is paramount for ensuring a prosperous retirement.

By making cash top-ups, CPF transfers, and contributions to SRS, which are eligible for tax relief, individuals can bolster their retirement payouts and enhance their overall savings. SRS accounts, managed by three operators, allow SRS members to contribute and invest, further enriching their financial future. It’s pivotal to weigh factors like escalating monthly payouts and pinpointing apt top-up choices.

By amplifying CPF contributions and opting to open an account with available schemes, individuals pave the way to realizing their retirement aspirations.

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Bryan Ang

Bryan Ang is a financial expert with a passion for investing and trading. He is an avid reader and researcher who has built an impressive library of books and articles on the subject.

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