As residents of Singapore, we are all familiar with the Central Provident Fund (CPF) and Supplementary Retirement Scheme (SRS). These two schemes are key pillars of our retirement planning and play a crucial role in ensuring financial stability during our golden years. However, many of us are still unsure of how CPF and SRS work, and the various investment options available under these schemes. In this article, we will break down the basics of CPF and SRS, and delve into the different retirement investment options that are open to Singaporeans.

Citizens and Permanent Residents of Singapore are automatically enrolled in the CPF scheme, which is a mandatory savings plan for retirement, healthcare and housing needs. A portion of our monthly salaries is contributed to our CPF accounts, which earn interest rates of up to 6% per annum. This accumulated amount can be used for various purposes, such as purchasing a home, paying for healthcare expenses and most importantly, securing a source of income during retirement.

SRS, on the other hand, is a voluntary scheme which allows individuals to save and invest for retirement in a tax-efficient manner. It is particularly beneficial for those who have reached the CPF contribution cap and are looking to further grow their retirement funds. Contributions made to SRS are tax-deductible, and the invested amount can potentially earn higher returns compared to