This is just Part 1—stay tuned for more as the story unfolds. Don’t miss the next chapter! Click here to read Part2.
I’ve been a PRS agent since the early days back in 2012 so let me share what I’ve learned about PRS over the years—and more importantly, how it can work for you.
Have you ever thought about how much you’ll need for retirement but felt like it’s a problem for “future you”? Well, let me tell you—future you is counting on present you to make some smart moves. And guess what? The Private Retirement Scheme (PRS) might just be the lifeline your retirement savings need.
What is PRS?
Think of PRS as your retirement sidekick. It’s a voluntary savings scheme designed to complement your EPF (yes, it’s not meant to replace it). You don’t have to open an account, but if you do, there’s a sweet incentive: tax relief until 2025 (and fingers crossed, beyond!).
But here’s where it gets interesting—PRS works similarly to unit trust. Here’s how:
1. Regular Top-Ups Are Your Best Friend
Remember dollar cost averaging? The age-old strategy where you regularly invest, regardless of market highs or lows? It’s golden here too.
2. Floating Prices = Opportunities
PRS prices fluctuate daily. That’s why sticking to consistent contributions can smooth out the market’s ups and downs over time.
3. A Long-Term Commitment
PRS isn’t for short-term gains. With restrictions on early withdrawals, it’s meant for retirement-focused savings. So, if you’re thinking PRS, think long-term—you’re building a future where you can sip kopi O without financial stress.
4. Flexibility
With PRS, you have the flexibility to pause your contributions, stick to regular contributions, or even make a lump sum top-up whenever it suits you.
How Is PRS Different from Unit Trust?
Here’s what sets it apart:
– Every contribution you make is split into Account A (70%) and Account B (30%). This allocation isn’t random—it’s designed to give you a balance between growth and accessibility.
Why Should You Care?
Let’s be real—saving for retirement isn’t always at the top of our to-do list. But with PRS, you get the freedom to save at your pace, enjoy tax relief, and ensure a little extra cushion for retirement. Sounds like a win, right?
Before You Jump In
Before 55, if you’ve been a PRS member for at least a year, you can make early withdrawals from Sub-Account B (the 30% portion of your savings) for general purposes. But here’s the catch—it’s limited to once a year, and there’s an 8% tax penalty on the amount you withdraw. So, think twice before dipping into your PRS fund early! But the takeaway is clear—PRS works best when you’re thinking long-term.
Make Your Future Self Proud
Start small, stay consistent, and let time work its magic. Future you will thank you for being proactive today. So, are you ready to take control of your retirement journey?
In Part 2, we delved deeper into the specifics of the Private Retirement Scheme (PRS), answering common questions like:
• How much it costs to open an account and make subsequent contributions.
• How to choose the right funds, including the Do-It-For-Me (DIFM) default option and the Do-It-Myself (DIM) approach.
• Insights into different investment strategies based on age groups.
We also highlighted special perks, like 0% sales charges for those under 30, and shared real-life experiences to help you decide the best approach for your retirement goals.
Click here to read Part 2.
If you found my article helpful, consider using my referral code 00015792 when subscribing to the Private Retirement Scheme (PRS). I’ll earn a small commission, which helps me keep this website running and continue sharing valuable insights. Thank you for your support!
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Retirement Planning Made Simple: Your Guide to Private Retirement Schemes (PRS)
This is Part 2
In Part 1, I shared an overview of the Private Retirement Scheme (PRS) and the basics you might want to know to get started.
Curious? Click here to read Part 1.
Imagine this: It’s the weekend, and you’re scrolling on your phone, dreaming of your future – maybe sipping coffee on a balcony overlooking the mountains or enjoying a peaceful retirement. But then the thought strikes – have I done enough to secure that dream? If you’re like me, you’ve probably wondered how to start planning for retirement, and that’s where the Private Retirement Scheme (PRS) comes in.
Asb Dividend Calculation
ASB (Direct Investment)
The dividend for Amanah Saham Bumiputera (ASB) is calculated monthly on a prorated basis based on the minimum or available balance in the account.
When I asked the bank officer (when doing top up over the counter), this is what I was told.
Family-Friendly Dining: Muhibbah Seafood Restaurant
Muhibbah has been around for as long as I can remember, back when I first moved to Taman Tun. A quick Google search tells me that Muhibbah Seafood has been serving since 1986. However, I only started going there regularly in my late 20s or early 30s. Let’s be honest: when I first started working, dining at restaurants wasn’t exactly affordable for me.
Aliyawanders 
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