What’s the difference between investing with cash vs SRS?

While SRS allows investors to invest only in Singapore Stock Exchange-listed stocks and some UTs, investment through cash offers easy access to markets and benefits of liquidation. Also, since in case of SRS, there’s a lock-in period, meaning, you can only withdraw the money after the age of 62, you will need to be extra sure that you want to do it for a long-term period. If age is not a factor that worries you, then you will definitely save up on tax.

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There is recent rah rah about 'hack' of setting up SRS with a nominal amount (could be a dollar!) to lock in age you can pull money out (currently 62, if set up later can be later). That should be done ALWAYS coz it is relatively low cost (a dollar!) and once ship sails won't be able to do again.

That aside, economically the benefit is tax relief now (but taxable later but you do get a 50% discount on tax payable) against the loss of liquidity for taking out much later (age 62).
If you would invest anyway (and note the restricted investible asset universe) and fairly certain hold for long term until retirement - then it is a free tax break so no brainer to do it.

But if you aren't too sure you can stay in so long then it is a gamble since you have a 5% penalty if you withdraw earlier. Basically need to balance yourself on potential needs in short/medium term (go through cash) or can hold off longer (then use SRS)