October 27, 2017 0

Let’s Talk About Private Retirement Scheme (PRS)

Let’s Talk About Private Retirement Scheme (PRS)

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Let’s talk about Private Retirement Scheme PRS.

Malaysia will have a larger aged population by 2050. People would have to be prepared to go into retirement, and formulating a proper retirement savings plan as early as possible would ensure a smoother transition.

“Instead of considering your retirement plans in 30 years – start now, start small. It will definitely help to increase one’s readiness towards retirement years,” Husaini, CEO of Private Pension Administrator Malaysia (PPA).

The PPA is a central administrator for the Private Retirement Scheme (PRS), established to administer and promote PRS industry growth. PPA also plays a role in educating the public to invest through proper channels by identify legitimate consultants through the Federation of Investment Managers Malaysia (FIMM) and avoid get-rich-quick schemes.

lets talk about private retirement scheme prs
What is PRS?
Private Retirement Scheme (PRS) is a voluntary long-term investment scheme designed to help individuals for his/her retirement.
Contributions to any fund under the PRS will be maintained in two separate sub-accounts by the PRS Providers:
a) 70% contributions in Sub Account A ( can be withdrawn upon reaching retirement age of 55 years )
b) 30% contributions in Sub Account B ( can be withdrawn once a year, subject to 8% tax penalty )
Who can invest in PRS?
– All individuals aged 18 and above
– Malaysians and Non-Malaysians
– Self employed or employees
– Employers can contribute on behalf of employees
Benefits of PRS?
Low Entry Requirements
Minimum initial contribution as low as RM 100 and subsequent RM 50 per fund.
Contributors can choose funds that best suit their risk profile and investment needs. Upon registration, can choose Default or Non-Default fund options.
Tax Benefits
Enjoy a tax relief up to RM 3,000 per year of assessment from 2012 to 2021 per individual*
Employers will be given tax deduction up to 19% on contributions on PRS made on behalf of employees
PRS Youth Incentive
a RM 1000 one off inventive for PRS investor age 20 to 30 with minimum first time contribution of RM 1000 between year 2014 – 2018.
Currently there are 8 providers registered to promote PRS. The eight PRS providers are:
– Affin Hwang Asset Management Berhad
– AIA Pension and Asset Management Sdn Bhd
– AmFunds Management Berhad
– CIMB-Principal Asset Management Berhad
– Kenanga Investors Berhad
– Manulife Asset Management Services Berhad
– Public Mutual Berhad
– RHB Asset Management Sdn Berhad
Phillip Mutual Berhad as your choice to open your PRS account
Why 1: Variety of PRS Funds
More than 40 retirement schemes from 7 PRS Providers to choose from
Why 2: Switching Facility
Facilitate switching among PRS Providers
Why 3: FAME Platform
To view consolidated statement from different PRS schemes 24/7
Why 4: Expertise
Market outlooks and fund updates reports are available
Phillip Mutual Berhad (PMB) is licensed by the Securities Commission under the Capital Markets and Services Act 2007, to carry out dealing in securities (restricted to unit trust products) and is approved by the Federation of Investment Managers Malaysia (FIMM) as an Institutional Unit Trust Adviser (IUTA) and Institutional Private Retirement Scheme Adviser (IPRSA) to distribute third party unit trust funds and Private Retirement Schemes (PRS).
For more details on PRS, you may visit the official website of PPA at www.ppa.my

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