It’s the time of year to wrap up and start planning for taxes. If you’re less familiar with the Supplementary Retirement Scheme (SRS), it’s a voluntary government scheme designed to complement your CPF savings.
For mid- to high-income earners, SRS is a great way to save on taxes. Every dollar you contribute to SRS is eligible for tax relief, up to a cap of S$15,300 for Singaporeans/PRs and S$35,700 for foreigners. That translates to up to thousands of dollars in tax savings.
But to truly maximise its potential, you need to go beyond just contributing and consider how to invest your SRS funds wisely. In this guide, we’ll explore the key strategies and investment options that can help you supercharge your SRS savings and achieve your retirement goals faster.
Table of Contents:
- Why Do You Need to Invest Your SRS Funds?
- What Are the SRS Investment Options?
- Simplify Your SRS Investment With Syfe
- Your Step-by-Step Guide to SRS Investing with Syfe
Why Do You Need to Invest Your SRS Funds?
Your idle cash in the SRS account only earns 0.05%
It’s great to save on taxes, but if you just leave your cash in your SRS account, the value of your money will be eroded by inflation over time.
You have a long-term time horizon for your SRS funds
Your SRS funds are meant for your retirement. After the statutory retirement age (currently 63), only 50% of your withdrawals from SRS are subject to income tax. While you’ll have less liquidity with your SRS funds, the long-term time horizon is actually a positive. You can afford to allocate more to higher-return investments such as equities, even if you’re concerned about short-term losses. While investing in equities might seem risky over one year, if you hold them for 20 years, even the worst historical outcome is an annualised return of 4.5%.
Your SRS investment gains are tax-exempted until the withdrawal
When you invest your SRS funds, any investment gains you make are tax-exempt until you withdraw them in retirement. This means you can potentially grow your nest egg much faster.
What Are the SRS Investment Options?
For your SRS funds, you have a reasonable range of investment options. Let’s explore these options and weigh the advantages and disadvantages of each.
Fixed Deposits
Fixed deposits are a safe option to invest your SRS. You can place your fixed deposits in both local and foreign currencies.
Current Interest Rate: 0.05% to 1.40% p.a. (as of Oct 2025). Check out the best fixed deposit rates in Singapore.
Advantages: Fixed deposits have low risk and offer certainty.
Disadvantages: The interest rates are generally low compared to other investments. Returns may not be able to keep with inflation, eroding purchasing power over time.
Singapore Government Securities
SRS funds can also be invested in Singapore Government Securities, including T-bills, Singapore Savings Bonds (SSBs), and Singapore government securities bonds (SGSs). These securities are fully backed by the Singapore government, offering a high degree of safety and stability.
To subscribe to Singapore Government Securities, you need to open a CDP account and can apply for them through your SRS operator’s online platform.
Current Interest Rate: 1.41%-1.93% (as of 3 December 2024)
Advantages: These instruments are backed by the Singapore government, one of the most creditworthy borrowers in the world.
Disadvantages: The interest rates are generally low compared to other investments. Returns may not be able to keep with inflation.
Syfe Cash+ Flexi (SGD)
Current Projected Return: 2.2%–2.3% p.a. (as of Oct 2025)
Syfe Cash+ Flexi (SGD) is now available for your SRS funds, designed to make your money work harder for you. Cash+ Flexi invests in low-risk options like short-term deposits and high-quality debt, aiming to grow your savings at a rate that outperforms current market interest rates.
Compared to other low-risk SRS investment options, Cash+ Flexi offers higher returns with the added benefit of no lock-in period. You retain complete control, with the flexibility to adjust your allocation as market conditions change.
This portfolio is managed in collaboration with Lion Global Investors, a trusted expert in Asia with almost 40 years of experience and US$56.8 billion in assets under management (as of June 2025).
Blue Chip Shares / REITS / ETFs
Compared to CPF investment options, SRS provides a wider range of choices. You can invest in blue-chip companies, REITs, and ETFs, customising your strategy to suit your goals. Popular SRS-eligible ETFs include options for technology, sustainability, and dividend-focused portfolios.
Return: Varies based on your investment selections
Advantages: Self-managing your SRS investments through investing in individual stocks and ETFs can lead to lower costs compared to actively managed funds, and offers greater flexibility to customise your portfolio.
Disadvantages: This approach requires high research effort and may lead to overtrading, which can result in underperformance and higher costs over the long term.
Unit Trusts
SRS-approved unit trusts offer a convenient way to access a wide range of investments, including exposure to specific regions or sectors. However, the actively-managed unit trusts often come with high fees and underperformance to their benchmarks.
Return: Varies based on your investment selections
Advantages: Most SRS-approved unit trusts are managed by established and reputable fund houses. You can gain specific exposure to regions, sectors, or investment themes that align with your investment strategy.
Disadvantages: Actively managed unit trusts often come with high fees, including sales charges (1%–3%), management fees(1.5%– 2.0% of NAV p.a.), and trustee fees (0.1%–0.15% of NAV p.a.). These fees can significantly erode your returns over time. Plus, many actively managed funds fail to outperform their benchmark, meaning you might not be compensated for the higher fees you’re paying. Finding the right actively managed fund requires extensive research and due diligence to identify skilled fund managers.
Syfe Income+
Syfe Income+ is a unique offering that brings you PIMCO’s best-in-class fixed income strategies. And now, you can invest in Income+ using your SRS money.
PIMCO is one of the largest investment management firms in the world, renowned for its fixed income strategies, with over US$2.2 trillion in assets under management (as of Sept 2025). They manage money for central banks, sovereign wealth funds, and pension funds. Through Income+, you can gain access to PIMCO’s institutional share class funds, typically at a fraction of the cost of standard retail funds.
In addition to lower fees, Syfe Income+ has delivered steady returns on top of regular dividends to investors. As of September 2025, Income+ Preserve and Enhance gained +5.01% and +6.14% YTD respectively. In comparison, the Bloomberg Global Aggregate Credit Index (SGD-hedged) delivered just 2.33% YTD.
This significant outperformance highlights the value of Syfe’s strategy, which leverages PIMCO’s renowned active management expertise to navigate market volatility and generate strong returns for investors. Get deeper insights into Income+’s latest allocation and performance here.
Syfe Core Equity100 (SRS)
Seeking an alternative to actively managed equity unit trusts with high fees and potential underperformance? Syfe’s Core Equity100 (SRS) offers a smarter solution to invest in global equities. We’ve carefully curated this portfolio using SRS-approved, low-cost index funds, giving you maximum exposure to global stocks while keeping costs down.
In addition, to optimise your returns, Core Equity100 (SRS) employs a smart beta strategy that tilts the portfolio towards three factors: value, size, and quality. The portfolio is also rebalanced periodically, so you don’t have to.
Syfe’s Core Equity100 (SRS) portfolio is built on a foundation of strong partnerships with world-class asset managers. We’ve collaborated with:
- Amundi: A leading European asset manager with €2.27 trillion in assets under management (as of H1 2025).
- Dimensional: A US-based manager with US$226 billion in AUM, renowned for its expertise in factor investing strategies.
The overall expense ratio of the underlying funds is at 0.15% p.a., significantly lower than a typical unit trust, which can charge around 2% p.a. in total expenses. This means more of your money is working for you, not being eaten away by fees.
See the breakdown below for the latest allocation and detailed costs of each fund in the Core Equity100 (SRS) portfolio.
Core Equity100(SRS) portfolio has delivered an 8-year annualised return of +11.23% p.a. Its YTD return stands at +10.53%. Get deeper insights into the portfolio’s underlying funds and performance here.
Endowment Insurance Plans
Your SRS funds can also be invested in Single Premium Endowment plans. Endowment plans combine the benefits of savings and insurance, offering guaranteed returns and potential bonuses to help your retirement funds grow steadily.
Advantage: Provide life coverage, up to three times the premium paid using SRS, and sometimes critical illness coverage, offering financial protection.
Disadvantages: Long-term commitment with penalties for early termination. Guaranteed returns tend to be low, and non-guaranteed returns are less transparent and may involve hidden costs and fees, reducing the net return.
Simplify Your SRS Investments with Syfe
Here are some of the benefits of investing your SRS funds with Syfe:
- All-in-One Convenience: Stay on top of your retirement planning effortlessly. With SRS now on Syfe, manage all your investments—brokerage, cash management, managed portfolios, and now SRS—all in one seamless platform.
- Unlock More with Syfe Tiers: Enjoy lower fees and exclusive rewards as your SRS investments contribute to your Syfe tier level. Check out the benefits waiting for you at the next tier.
- Invest Your Way: Start with any amount—no minimums, no lock-ins. Enjoy the flexibility to invest on your terms and withdraw anytime.
- Expert-Driven Growth: Benefit from a hands-free investing experience with our dedicated investment team optimising and rebalancing your portfolio.
The deadline to contribute to your SRS account is 31st December. Make sure you top up your SRS funds before the year ends to enjoy tax relief on your contributions this year.
You can also take advantage of Syfe’s special promotion for SRS investors. Watch this space for our SRS investing promo.
Your Step-by-Step Guide to SRS Investing with Syfe
Investing your SRS funds with Syfe is quick and easy. You may follow the below steps:
Step 1: Open an SRS bank account with an SRS bank operator (DBS/POSB, OCBC, UOB). Once your SRS bank account is open, you may contribute into your DBS/POSB or OCBC or UOB account.
Step 2: Log into your Syfe app or website.
Step 3: After logging in, select ‘Managed Portfolios’, then ‘Add Portfolios’, and tap the ‘SRS card’ on the top.
Step 4: Select a SRS-eligible portfolio.
Step 5: Select ‘SRS account’ and submit your investment amount.
Step 6: You’re all set. Funds from your SRS bank account will be invested into your selected Syfe portfolio in about 6-7 business days.
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