Should I contribute to SRS or RSTU?

I always prefer SRS over RSTU because CPF is fixed. You cannot take out money from CPF if you have emergencies of any nature, good or bad.

You can take out money from SRS in emergencies, by paying a 5% penalty. The penalty may be high, but in emergencies, at least you have this option.

A business opportunity, an investment chance, a good deal...

Or a medical bad crisis, a family crisis etc.

I prefer that tiny bit of flexibility anytime.

PS: Plus SRS money can be used in other funds and stocks, potentially generating higher returns than RSTU

Too many acronyms flying around, I had to google them so might as well write it down here so it's easier for other people to reference.

RSTU - retirement sum topping-up scheme

• from what I've read, means top-up to your CPF Special Account (SA) and get guaranteed returns that account.
• It cannot be withdrawn in cash or used for any other purposes such as education, investment, insurance premium payments, housing etc.
• If you are making cash top-ups for yourself, you can enjoy tax relief equivalent to the amount of cash top-ups made, up to $7,000 per calendar year.

https://www.cpf.gov.sg/Members/Schemes/schemes/...

SRS - supplementary retirement scheme

• can withdraw, but 5% penalty and the money withdrawn will immediately become taxable (might be quite painful if you lump sum take out 6-digit or more, approx 10% income tax)
• max top up per year is $15,300

https://blog.seedly.sg/supplementary-retirement...