SRS monies may be used to buy Singapore Savings Bonds in future: Tharman

SUPPLEMENTARY Retirement Scheme (SRS) monies may be used to buy Singapore Savings Bonds (SSBs) in future, Deputy Prime Minister Tharman Shanmugaratnam said on Monday.

Responding to a question by West Coast GRC MP Patrick Tay, Mr Tharman added: "The Monetary Authority of Singapore is making IT system changes to bring this about, and will make an announcement when it is ready."

The move looks set to enhance the range of low-cost products available on the SRS platform and the current allocation mechanism for SSBs will remain, allowing smaller savers to get preference for subscription of the bonds in the event of over-subscription.

"For those wanting a low-risk retirement savings instrument, SSBs are a good alternative to cash held in savings accounts," Mr Tharman said.

SSBs were first issued in October 2015 as a safe and flexible means of long-term investment, with Singaporeans being able to invest a minimum of S$500 for the 10-year bonds.

As of Feb 1, 2018, more than 55,000 individuals hold over S$1.8 billion of SSBs.