Save For Retirement and Enjoy Tax Relief Too

Retirement could be the best chapter of your life, because you will have the time to do the things you have always wanted to do and do it with the people closest to you. However, you will need the means and resources to make that happen once your working years are over. Hence, it is important to start saving for retirement as early as possible and steadily build your retirement funds.

The Private Retirement Schemes (PRS) was introduced to help you achieve just that. As a voluntary long-term savings scheme which complements the mandatory contribution scheme, PRS is designed to help Malaysians save more for their retirement.

PRS Tax Relief

One of the benefits you get to enjoy when you save in PRS is the personal tax relief of up to RM3,000 per year, which gives you an additional tax savings while adding to your PRS retirement account. For example, if you earn between RM50,000 – RM70,000 per year (or RM4,200 – RM5,800 per month) and fall within the 13% tax bracket, then you stand to gain RM390 in tax savings from your PRS contributions of RM3,0001.

If you have not started saving in PRS, it is never too late to start. With PPA’s PRS Online service, the entire process is convenient and hassle-free. Take advantage of the annual PRS Tax Relief by opening a PRS account right from the comforts of your own home with PRS Online Enrolment. After that, you can top up your PRS funds anytime and anywhere with PRS Online Top Up.

Building an adequate and sustainable retirement savings for the future is achievable with a regular contribution plan during our income-earning years. By staying on course with a retirement scheme like PRS, you get the best of both worlds – enjoying tax relief whilst saving more for your retirement!

After all, who doesn’t love tax reliefs?

1Inland Revenue Board of Malaysia, Assessment Year 2021

Source: Private Pension Administrator Malaysia (PPA). PPA is the Central Administrator for the Private Retirement Schemes (PRS).