𝐓𝐡𝐞 🅼🅰🅽🆈 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐒𝐚𝐯𝐢𝐧𝐠𝐬 𝐢𝐧 𝐏𝐑𝐒
Updated: Jan 9, 2021
An overwhelming 70% of people who took a survey in March by Private Pension Administrator Malaysia (PPA) said they wished they are saving more for their retirement.
The survey, developed as part of PPA's continuous initiative to make Private Retirement Schemes (PRS) a strong retirement savings pillar, also revealed that lower fees, higher monthly income and better fund performance are the top 3 considering factors before saving more in PRS.
"It is encouraging to know that so many want to save more," said PPA chief executive officer, Husaini Hussin, the central administrator for PRS. "To this end, I wish to highlight the benefits of saving in PRS here."
Affordable and Low Fees
Saving for retirement is affordable as RM100 is all you need for your initial contribution. Sales charges and management fees of PRS funds are also lower on average compared to unit trusts.
Additionally, if you use PRS Online Enrolment, 0% sales charge is offered by participating PRS Providers for enrolees aged 30 and below.
Long Term Growth
The important thing is to start saving 🄽🄾🅆. When your income increases, you can raise your contributions accordingly to the recommended 10% of your monthly salary.
Setting aside a fixed sum monthly allows you to ride the wave of market volatility and not be overly focused on short-term fund performance. This strategy gains you more units when prices are low and you could benefit from positive returns over the long term.
59% of survey respondents put an online direct debit service at the top of their wish list to start saving on a monthly basis, which affirms PPA's ambition to introduce this service next year.
Choice and Flexibility
With 8 PRS Providers offering 55 Islamic and Conventional funds, there are no shortage of PRS funds to choose from. If you can't decide, a unique feature of PRS allows you to go for the age-based default option, which aligns the suitable asset allocation to your age group.
Whether you self-select or pick the default option, you always have the flexibility of switching PRS funds within the same PRS Provider or transferring your money altogether to another PRS Provider.
Contributions you make to your PRS account are eligible for a personal tax relief of up to RM3,000 annually. Your tax savings can be substantial depending on your tax brackets, giving you more reasons to boost your retirement savings.
PPA as the Central Administrator
In addition to providing one-stop account management, PPA also developed the PRS Online service so you can monitor your retirement savings and top up your PRS funds anytime, anywhere. Furthermore, you can make a nomination through PPA and name up to six beneficiaries.
After working hard for 3-4 decades, your retirement should be your reward. Get to enjoy everything you work for. 🆂🅰🆅🅴 🅸🅽 🅿🆁🆂
(Thanks to The StarOnline)
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