Thinking of retirement can be daunting if safety nets are kept in place, while there is no hundred percent security on what you keep aside now will be sufficient for your golden years, but the thought of not having any savings at all is even more scary. The Private Retirement Schemes being offered by selected institutions are designed to assist Malaysia’s to think about their retirement at an early stage and allow their savings to earn for them.
Perhaps that why the Private Pension Administrator Malaysia (PPA) celebrated when the government extended the tax relief for savings up to RM3000 in the recent Budget 2021, this means Malaysians can continue to save in PRS until 2025, tax free.
The PRS Tax Relief given to individuals who save in the voluntary scheme has proven to be effective in encouraging Malaysians to save more for their retirement. “Extending the PRS Tax Relief until 2025 is a positive move by the government that views the Rakyat’s preparedness towards their retirement well-being as a national priority, especially during this challenging time,” said Datuk Zaiton Mohd Hassan, Chairman of PPA, the central administrator for the
PRS.
Close to half a million PRS Members have collectively saved RM4.4 billion in net asset value, for those who have not maximised their tax relief for 2020, can also top up their PRS accounts with the PRS Online application. The PRS scheme has delivered good returns over the years anywhere between 4.59% to 11.15% depending on the products.
To encourage more savings, PPA is giving first-time savers a chance to earn extra treats with RM30,000 units up for grabs when they join as members with the ‘Jom PRS, Get Treats!’ contest.
