Don't let retirement sneak up on you: A Millennial's Guide to PRS in Malaysia
Don't Let Retirement Catch You Broke: A Malaysian Millennial's Guide to PRS Thinking retirement is decades away? Think again! This guide breaks down the Private Retirement Scheme (PRS) for young Malaysians. Get free money from the government, invest flexibly, and score sweet tax breaks. Secure your golden years - the earlier you start, the smoother the ride! #adulting #retirement #PRS
FINANCES


Let's face it, retirement planning isn't exactly the trendiest topic.
Chasing that #adultlife, crushing your career and planning your next epic vacation.
Thinking about what life is like in our golden years seems light years away, doesn't it?
Wrong! Here's a reality check:
According to the Employees Provident Fund (EPF), many Malaysians spend a significant portion of their EPF savings just a few years after retirement.
This can leave you scrambling for scraps later in life.
What can we young guns do to ensure a smooth transition into retirement?
Join the Private Retirement Scheme (PRS) game designed especially for us millennials.
Free Money Warning! (Yes, really)
Feeling the pinch of #adulthood but still want to invest in your future?
PRS has your back.
For a limited time (ends 2018, so act fast!) the Malaysian government will give you a RM500 bonus if you are between 8pm and 8pm. years of life Here's the catch (it's a good one!):
All you have to do is contribute RM1,000 to your PRS account within one year.
It's basically free money to jumpstart your retirement savings - who can say no?
PRS: Your Investment Playground
Remember those adventure books we devoured as kids?
PRS offers similar flexibility.
Unlike the unitary approach, PRS allows you to invest in funds that match your risk tolerance.
Feeling adventurous?
Choose a fast-growing selection.
Want to play it safe?
Choose a fund with lower risk.
There are even Sharia compliant options for our Muslim friends.
PRS also allows you to decide how much and how often you donate.
It's your money, your call! In addition, you can invest in several funds at the same time and create a diverse portfolio that suits you.
Tax Credits!
Here's another reason to love PRS:
Tax Credits! You can get a tax exemption of up to RM3,000 per year on your contributions for the first 10 years.
That's quite a bit of money saved that you can reinvest for future profits.
What's more, PRS income is also tax-free - cha-ching!
This discount also applies to business owners who contribute to their employees' PRS accounts.
Using Money (With Proposals)
Let's talk about cash flow.
Your PRS investment is divided into two accounts:
Account A (70%) and Account B (30%).
The good news is that you can use the money in Account B before you withdraw.
Think of it as your emergency supply.
There's a problem though: you'll be hit with an 8% tax penalty on every withdrawal.
This makes it less attractive compared to withdrawal from EPF account 2 (which is tax free).
Bottom line: Is PRS right for you?
PRS is not perfect.
Unlike the guaranteed minimum dividend of 2.5% on your EPF savings, PRS investments can vary.
If the market is performing poorly, it is possible that you will not see returns or even experience a negative one.
But here's the thing:
Inflation is an insidious thief that eats away at the value of your money over time.
A simple savings account just won't cut it. PRS offers higher returns than a traditional savings account, helping you stay ahead of inflation and ensure a comfortable retirement.
Good news?
Millennials are beginning to understand the importance of retirement planning.
More and more young adults are joining PRS and realizing the need to build a stable financial future.
Don't get left behind!
Ready to take control of your future?
Go to the PRS website or talk to a financial advisor to learn more about your options.
Sharing this article with your friends and family is a great way to spread the word about the benefits of PRS.
Remember, a little planning today can make a big difference in your golden years.
So, what are you waiting for? Start building your retirement nest egg with PRS today!
Don't Let Retirement Catch You Broke: A Malaysian Millennial's Guide to PRS
Thinking retirement is decades away? Think again! This guide breaks down the Private Retirement Scheme (PRS) for young Malaysians. Get free money from the government, invest flexibly, and score sweet tax breaks. Secure your golden years - the earlier you start, the smoother the ride! #adulting #retirement #PRS

