Smart tips for youth
Time is on your side!
Albert Einstein once said ““Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Individuals who start early, between the age of 20 and 30, will have a good 30 to 40 years of compounding their savings before reaching retirement.
Contribute monthly so it’s more affordable
To receive the PRS Youth Incentive, you would need to have an accumulated contribution of RM1,000 during a two (2) year period which works out to an affordable RM40 a month. Don’t just stop there – save more and you would even benefit from the PRS Tax Relief of up to RM3,000 annually. Saving regularly makes it affordable and instils an “unconscious” habit towards building your retirement funds.
Ask your parents!
Seek the advice of your parents and they may contribute on your behalf to help you kick start your retirement savings. Once you start earning, you could then continue saving on your own.