[SINGAPORE] The government will work with Supplementary Retirement Scheme (SRS) bank operators to smoothen account holders’ process of withdrawing funds from their account.
The response comes shortly after The Straits Times (ST) published a letter on its Forum page on Monday (Jun 16) by account holder Francis Yeoh, who described the current process as inconvenient, as it requires an individual to be physically present at a bank.
The SRS is a voluntary scheme that was created to complement the Central Provident Fund (CPF), and to help Singaporeans save more for their retirement by allowing them to contribute up to a maximum of S$15,300 into accounts operated by DBS, OCBC and UOB.
In late 2024, a proposed framework aimed at expanding and streamlining the SRS was shelved after the three local banks withdrew their joint application. This prompted the Competition and Consumer Commission of Singapore to halt a review it was to undertake on the framework, which sought to improve access to SRS products and boost competition among providers.
Unlike withdrawals, contributions to SRS, which are eligible for tax relief, can be processed digitally.
In his letter, Yeoh noted that the process of requiring individuals to be physically present at a bank to withdraw funds from their SRS accounts was time-consuming, and described the process as “surprisingly outdated and frustrating” – particularly given that CPF withdrawals can already be done online.
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He added that this seems “misaligned with Singapore’s push for digitalisation”.
On the ability to make digital withdrawals, the CPF Board told The Business Times (BT) that this is supported by a “digital-first, not digital-only” approach – offering members convenient digital access while retaining non-digital alternatives.
A spokesperson said that robust security measures are in place for all online transactions, including Singpass two-factor authentication, real-time SMS and e-mail alerts, and verification to ensure funds are credited only to bank accounts belonging to the member.
Additional anti-scam measures include a default daily withdrawal limit of S$2,000 for members aged 55 and above (adjustable up to S$50,000), a CPF Withdrawal Lock feature, and a 12-hour cooling-off period for changes to withdrawal limits or account settings.
Yeoh had asked why a similar level of digital convenience could not be extended to SRS withdrawals.
“As our population ages, more retirees will seek access to their SRS funds,” he noted. “Requiring them to queue for hours to manage their retirement savings is inefficient, inconvenient and, frankly, unnecessary.”
He added that he hopes the banks and the authorities can review this process.
In response to Yeoh’s letter, the Ministry of Finance’s (MOF) director of communications and engagement Farah Abdul Rahim acknowledged on Friday that the current withdrawal process “can be improved for greater convenience”.
She said, however, that the current process of requiring account holders to be physically present at a bank when making a withdrawal enables SRS operators to give customised advice to the individual. “This helps ensure that members are aware of their eligibility for tax concessions and/or penalties, if any, relating to the nature of their intended transaction.”
BT has sought a comment from the Association of Banks in Singapore, of which the three local banks are members.
Financial advisers told BT that the feedback was valid, and highlighted the need for more flexible withdrawal options.
Dr Ben Fok, chief executive of Bill Morrisons Capital, noted that since both CPF and SRS are designed to provide retirement income, their withdrawal processes should be aligned to promote clarity and ease of use.
He added that integrating both schemes into a single digital interface could help reduce confusion and ensure they work more seamlessly together – minimising the need for physical visits and improving overall user experience.
“This approach would support retirees in managing their retirement funds more efficiently, offering a seamless and convenient way to access their savings,” he felt.
Christopher Tan, group chief executive of Providend, suggested that banks offer three tiers of access to cater to varying user preferences.
The first would be a fully digital option, through which account holders can use the bank’s mobile application or an online portal to transfer funds from their SRS account into their preferred bank account.
A second option could involve submitting a physical application form, with the funds either sent by cheque or credited directly.
The third option is for those who are less digitally inclined or prefer face-to-face service. For them, visiting a bank branch should remain an option.
