Why do I need to save additional for my retirement?

Being Accountable to Earning and Retirement Planning
One of the biggest mistakes self-employed makes is not planning adequately for their retirement. Moreover, even if the will to save for retirement is there, the way can be problematic. Being self-employed takes a lot of courage as there are many fresh risks and challenges to face compared to being employed.

Money are often set aside for months where business doesn’t grow the way you expect, or extra provisions are set aside to pay for your invoices when collection from your receivables does not come in on time. If you had just started up your business, most of the money earned during the initial years will go to paying back loans that you took, or reinvesting the profits for aggressive expansion, and as such, neglecting the need to set aside money for retirement savings and investing.

By generating one’s income directly from customers, clients or organizations, this would also mean that one has to be more pro-active in retirement planning. This is especially more crucial for the self-employed as there isn’t any mandatory contribution deducted from your payroll or paycheque.

Ensure Adequacy, Sufficiency and Sustainability of retirement funds
In order to have a worry free lifestyle after you retire, you will need to ensure that your retirement funds is adequate to fund your monthly retirement expenses, sufficient to last throughout your retirement years and is able to sustain your retirement lifestyle without losing out to inflation.

Preparing for Your Retirement at Every Stage of Life
Money starts working for you the moment you set them aside for retirement. It is never too late to start, but starting early gives you an advantage. You have more time to save and compound your retirement savings.

Private Retirement Schemes (PRS)
PRS is a voluntary long-term savings and investment scheme designed to help you accumulate your retirement funds.

What are the Benefits of PRS?


Who am I dealing with?

PRS Providers

PRS Providers provide and manage the private retirement schemes (PRS) which includes dealing, marketing and distributing units of a fund under a PRS. There are currently 8 approved PRS Providers


PRS Distributors

PRS Distributors are entities that enter into agreement with PRS Providers to market and distribute the PRS to individuals and employers

  1. Institutional PRS Advisers (IPRAs)
  2. Corporate PRS Advisers (CPRAs)

Private Pension Administrator Malaysia (PPA)

Other key components of the PRS Industry. Click here.

Where do I invest?

PRS provides you Choice and Flexibility


Please read the PRS Provider’s Scheme Product Highlights Sheet and Disclosure Document for more information.

When do I start?

At every opportunity!

Fluctuations in income are common, as many businesses are affected by seasonal demands. For some who just ventured in self-employment might find irregular earnings harder to manage. It is therefore crucial to find every opportunity to set money aside because money starts working for you the very moment you set them aside for retirement. As such, the earlier you save for retirement, the more money you will have to retire on. Having a longer time period to retirement gives you a head start to save for retirement and time for you to compound your retirement savings.

Many business owners rely on selling their business to fund their retirement, but without their involvement, their business may be worth less than they think. Many business ventures can also be hard to sell. Rather than treating all the income you earn from your business as your personal spending money, pay yourself a monthly salary, and set aside a percentage of your monthly salary for retirement planning.

In fact, if you make monthly contributions, you will also advantage from Dollar Cost Averaging and you do not need to take excessive risk from having to time the markets.

How do I start?

To start saving for your retirement, simply follow the 5 steps for a quick start up!

  1. Set a retirement plan
  2. Choose a PRS Providers
  3. Choose your PRS Fund(s)
  4. Sign up
  5. Make a regular contribution


Check out the infographic to help you with these steps. Click Here.

Use the retirement calculator to determine how much you need during your retirement. Click Here.

If you need more information, contact PPA.

Register your interest in PRS

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