What is PRS? Private Retirement Scheme in Malaysia

Needing to work even at old age

The Private Retirement Scheme (PRS) in Malaysia is a voluntary long-term investment scheme designed to help you save for your retirement. It is intended to complement the mandatory retirement savings the Employees Provident Fund (EPF) provides.

Here are the key benefits:

• Voluntary:

  • PRS is a voluntary scheme that supplements mandatory EPF savings, offering additional financial security for retirement.

• Tax Incentives:
  

  • Income generated within the PRS funds is exempt from tax.

Contributions to the PRS are eligible for tax relief of up to RM 3,000 per year until 2025.

• Flexibility in Contributions:

  • No fixed schedule; contribute as much or as little as you can, whenever you choose.

  • Contributions can be regular or ad-hoc.

  • You can choose different PRS providers and switch between funds.
    

• Withdrawal Flexibility:

  • PRS is meant for retirement savings, so withdrawals before age 55 are generally restricted.

  • Partial withdrawals are allowed for specific purposes like health and education, subject to terms and conditions.

  • Full withdrawals can be made at age 55, or in cases of permanent total disablement, serious disease, mental disability, or death.

At age 55, AIA funds allow you to withdraw your savings as a lump sum, fixed amount, or over a fixed period to ensure they last throughout your retirement.

• Diversified Investment Options:

  • PRS offers various funds with different risk and return profiles to match individual risk tolerance and retirement goals.

  • Professional fund managers oversee PRS funds, providing investment expertise.

  • PRS is regulated by the Securities Commission Malaysia (SC), ensuring a structured and secure regulatory environment.

Enjoying Retirement

These advantages make the PRS an attractive option for Malaysians looking to enhance their retirement savings and ensure financial stability in their later years.

You can start your PPA journey today at ppa.my.

Use my referral code (2873A) in the remark section.

Fund Performance

AIA PAM - Growth Fund (FSMOne’s Recommended Unit Trusts Awards 2024/25)

YTD	1 Year	5 Years
10.20%	12.38%	6.86%

Bloomberg data as at 29 Jul 2024 annualised returns.

AIA PAM - Moderate Fund  (FSMOne’s Recommended Unit Trusts Awards 2024/25)

YTD	1 Year	5 Years
8.19%	10.32%	5.82%

Bloomberg data as at 29 Jul 2024 annualised returns.

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