PRS is generally a long-term investment scheme established to increase retirement fund savings. The objective of PRS is to provide options for existing schemes for all Malaysians, whether self-employed or self-employed, to voluntarily supplement their retirement funds under a structured and regulated scheme.
- Each contribution made to PRS will be divided into sub-accounts A and B.
- Once PRS contributors have reached retirement age, they are entitled to withdraw 70% of their savings from sub-account A.
- 30% of sub-accounts B can be issued once a year.
- Investors contributing to PRS may choose retirement funds based on several factors such as goals, retirement requirements and risk tolerance.
- The choice of funds will also depend on the age factor.
- For Growth Funds, for those under 40 and with a 70% equity maximum, investment outside Malaysia is permitted.
- Medium Funds, for people between 40-50 years of age and 60% of equity, are also permitted to invest outside Malaysia.
- Conservative Funds, for those over 50, investing outside of Malaysia are not allowed.
- If the retirement period is still a long way off, you may want to consider investing in a high risk fund but it may provide a higher return
- Each member has the option of contributing to one fund or more than one fund under one PRS or contributing more than one fund under a different PRS.
- If the contributor feels he or she needs to exchange funds in one PRS or switch to another PRS, then they may do so subject to the conditions imposed by the PRS Provider.
For more information about PRS Malaysia, please visit https://www.vka.com.my/