SRS or CPF top-up before 31 December? Who it's worth it for
Money that goes into SRS or CPF by 31 December 2026 lowers the income you’re taxed on for YA2027. How much you save depends on one number: your top tax rate.
How much you save
You save your top tax rate on every dollar you put in.
| Chargeable income | Top rate | Saving per $1,000 |
|---|---|---|
| $30,001 – $40,000 | 3.5% | $35 |
| $40,001 – $80,000 | 7% | $70 |
| $80,001 – $120,000 | 11.5% | $115 |
| $120,001 – $160,000 | 15% | $150 |
| $160,001 – $200,000 | 18% | $180 |
Example: a citizen earning $120,000 who puts the full $15,300 into SRS saves about $1,760 in tax.
SRS: up to $15,300 (foreigners $35,700)
- Good for: anyone at 11.5% or above who won’t need the money before retirement.
- The catch: withdrawing before the statutory retirement age means the full amount is taxed, plus a 5% penalty. After retirement, only 50% of withdrawals are taxed, spread over 10 years.
- Money sitting in SRS earns almost nothing, so invest it if you open an account.
CPF cash top-up: up to $8,000 for yourself, $8,000 for family
- Good for: building your retirement savings, or helping parents. Your Special or Retirement Account earns at least 4%.
- The catch: you can’t take it back out. Top-ups that get government matching grants don’t count for tax relief.
Who shouldn’t bother
- If your top rate is 2% or 3.5%, you save very little for money that is locked up.
- All reliefs together are capped at $80,000 a year. High earners with many reliefs may already be near the cap.
Don’t leave it to 31 December
Bank transfers and CPF top-ups can take a day or two. Do it by mid-December so it counts for this year.