All of us know what’s EPF is but how many of you know about Private Retirement Scheme (PRS)?
So what is PRS? PRS is Private Pension Scheme that was introduced by the government way back in 2012.
As the name suggests, Private Retirement Schemes (PRS) are managed by private companies, as opposed to Employment Provision Funds (EPF) which are wholly owned by the government. The objectives of both are identical: save money today and benefit from interest receivables and eventually withdraw the fund upon retirement
Here is some difference between EPF and PRS
Even though the PRS is managed by private companies but PRS is still being monitored closely by our government body to ensure the money invested in the good hands. PRS is open to all Malaysia citizen above 18.
But here is a good news.
Government has just announce that if you are under 30 and you have deposited money to PRS, they will provide RM1,000.
If you’re asking, is there any catch?
The answer is no … there is none but there are certain criteria that you would need to meet and it’s as below:
- You need to be Malaysian citizen
- You need to be a new member of PRS
- You are aged between 20 – 40 (based on your date of birth)
- Accumulated investment with more then RM1,000
If you have two PRS accounts with RM500 invested in each of them within a year, you will not be qualified for the incentive. This incentive has been valid from 2014 and will end in 2018, but your account will stay open until you retire.
Aside from that, another important perks when you put money in PRS.
What are they? You will be able to claim the individual tax relief of up to RM3,000 per year on top of your EPF’s tax relief!! You will not just able to get RM1,000 but you also can get a tax relief from it!
If you need more information on this, you can visit PRS website for more details.