Private Pension Administrator Malaysia (PPA) is pleased that the recent Budget 2021 has extended the Private Retirement Schemes (PRS) Tax Relief of up to RM3,000 per year until 2025.
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 (in picture), Chairman of PPA, the central administrator for the PRS.
Take advantage of PRS tax relief
Close to half a million PRS Members have collectively saved RM4.4 billion in net asset value. If you have not started saving in PRS, then there is no better time to start taking advantage of the PRS Tax Relief and PPA’s PRS Online Enrolment service. For PRS Members who have not maximised their tax relief for 2020, they can also Top Up their PRS accounts anytime, anywhere with the PRS Online application.
Additionally, from now until 14 December 2020, first-time savers stand a chance to boost their retirement savings further through PPA’s ‘Jom PRS, Get Treats!’ contest, where monthly draws and prizes worth up to RM30,000 in units are up for grabs. Participating PRS Providers are also offering additional treats.
Despite a challenging year caused by the COVID-19 pandemic, the PRS industry remains resilient. Below is a snap shot of PRS funds’ performance as at 31 October 2020:
This year, due to physical distancing practices, PPA has adapted most of its financial education initiatives online to reach a wide audience through a series of webinars, a revamped e-learning website and the production of a six-part video series on retirement savings and planning with PRS, among others.
Private Pension Administrator Malaysia (PPA) is the central administrator for the Private Retirement Schemes (PRS). PPA is a body approved by the Securities Commission Malaysia and is established to administer and promote the growth of the PRS industry.
A significant role of PPA is to manage a life-time central account for PRS Members. PPA continually advocates the importance of retirement savings through PRS by being a one-stop resource centre for the public on retirement learning and PRS in Malaysia. These include the implementation of value-added initiatives such as driving greater awareness through marketing programmes and collaboration with stakeholders covering universities, media and government agencies to synergistically elevate and encourage Malaysians to save more for the future with PRS. The PRS Online services developed by PPA further allows the public and PRS Members to enrol and top-up their PRS contributions from the computer and smart devices in an easy, convenient and secure way.
The Private Retirement Schemes (PRS) is a voluntary long-term savings and investment scheme designed to help Malaysians save more for their retirement. PRS seeks to enhance choices available for all Malaysians whether employed or self-employed to supplement their retirement savings under a well-structured and regulated environment. There are eight PRS Providers offering a choice of 57 retirement funds, from which individuals may choose to invest in based on their own retirement needs, goals and risk appetite. The fund options under PRS are intended to enhance long-term returns for members within a regulated framework. Malaysians have the option of saving in PRS through multiple channels such as PRS Online, the PRS Providers and close to 25,000 PRS Consultants.