PRS Tax Relief Extended until 2025 will Benefit Retirement Savers

PETALING JAYA (4 Dec 2020): Private Pension Administrator Malaysia (PPA) is pleased that the recent Budget 2021 has extended the Private Retirement Schemes (PRS) Tax Relief of up to RM3,000 per year until 2025.

The PRS Tax Relief given to individuals who save in the voluntary scheme has proven to be effective in encouraging Malaysians to save more for their retirement.

“Extending the PRS Tax Relief until 2025 is a positive move by the government that views the Rakyat’s preparedness towards their retirement well-being as a national priority, especially during this challenging time,” said Datuk Zaiton Mohd Hassan, Chairman of PPA, the central administrator for the PRS.

Close to half a million PRS Members have collectively saved RM4.4 billion in net asset value. If you have not started saving in PRS, then there is no better time to start taking advantage of the PRS Tax Relief and PPA’s PRS Online Enrolment service. For PRS Members who have not maximised their tax relief for 2020, they can also Top Up their PRS accounts anytime, anywhere with the PRS Online application.

Additionally, from now until 14 December 2020, first-time savers stand a chance to boost their retirement savings further through PPA’s ‘Jom PRS, Get Treats!’ contest, where monthly draws and prizes worth up to RM30,000 in units are up for grabs. Participating PRS Providers are also offering additional treats.

Despite a challenging year caused by the COVID-19 pandemic, the PRS industry remains resilient. Below is a snap shot of PRS funds’ performance as at 31 October 2020:

*Returns are annualised since inception.

This year, due to physical distancing practices, PPA has adapted most of its financial education initiatives online to reach a wide audience through a series of webinars, a revamped e-learning website and the production of a six-part video series on retirement savings and planning with PRS, among others.

PRS is regulated by Securities Commission Malaysia.