Our Government is given FREE RM500??

What is PRS?

PRS is a voluntary long-term investment scheme to accumulate savings for retirement.

Who can apply PRS?

Anyone whom is 18 years old and above is eligible to contribute to the PRS. You will need proof of identification.

How to enjoy up to RM3000 tax relief?

(i) Individual tax relief 

Tax relief of up to RM3,000 per annum will be applied on taxable income, for individual contributions for the first 10 years.

(ii) Employers

Employers contributing to PRS on behalf of their employees are eligible for a tax deduction on their contributions above the EPF statutory rate, up to 19% of the contribution. Please note that the employer tax relief is only applicable on the company as an entity.

How to entitle for RM500 Youth incentive?

Applicable who youth age 20-30 whom has accumulated a minimum gross contribution amount of RM1,000 within a year, government will contribute RM500 per qualified person to be used to purchase units of PRS in the PRS account.

Why we should invest now?

For example, we have two person, Mr Now and Mr Later. 

Mr Now start his investment immediately at age 20, for 10 years only. 

Where else Mr Later choose to enjoy his life now, delay the investment for 10 years and only invest when he is at age 30, more financially stable by then and continue invest for 25 years until he retires, age 55

Let's take a 8% growth annual with RM500 monthly.

Mr.Now: Contributes RM500 monthly for 10 years with total investment of RM30,000.

Mr. Later: Only starts his investment at age 30 and contributes for the next 25 years till 55 years old.His total investment is RM75,000. 

Who do you guess will be able to accumulate more money?

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The answer is...

At the age of 60,

Mr Now will accumulate a total amount of RM510,090 with total investment of RM30,000.

While Mr Later will accumulate a total amount of RM375,872 with total investment of RM75,000. 

A total difference of RM134,000!!!

Shocking right? How is that possible?

Look at graph below:

Even Mr Now only invest for 10 years. His money continues to grow exponentially and surpass Mr Later all the time! That's the power of compounding!

So don't wait any longer, start and invest now! 

TIME IS MONEY.

For more PRS info, you may contact Wan Khim (pangwankhim@vka.com.my), a licensed financial planner, who can distributes products from multiple PRS providers. Thank you and have a nice day! =)