What is PRS?
Private Retirement Scheme (PRS) is a voluntary scheme that lets you take the lead on boosting your total retirement savings. We’re finding many consumers need help with ensuring they have saved enough to have the retirement lifestyle they dreamed of and these funds are a perfect complement to your Employees Provident Fund (“EPF”) member savings. You can invest in Principal PRS funds through your Principal distributor (Consultant or local bank) or you can enrol online through the Private Retirement Scheme platform:
Why save more for retirement?
Chances are, you’ll live longer in retirement than you did working. It’s important to have multiple sources of income to rely on. The earlier you start, planning and investing for retirement - the more impact you can have on your total retirement picture and reap these benefits:
Potentially grow savings
Reasonable hedge against inflation
Take advantage of compound earnings
Plus, with PRS there are tax advantages. Every year, you enjoy personal tax relief* in addition to the RM6000 per year tax relief for the mandatory retirement savings contribution and life insurance premiums. This could be as much as RM840 per year (depending on your tax bracket).
*For contributions into the PRS and deferred annuities effective from years of assessment 2012 to 2025.
You may contribute to the Scheme by selecting any one or a combination of the Funds. However, if you choose to let us determine the Fund for you, we will allocate your contributions into one of the Core Funds that corresponds to your year of birth as listed in the table below. A Member Statement will be sent to you to notify that you have been allocated to the Default Option.
- Do-It-Myself: You can contribute to the Scheme by selecting any one or a combination of the Funds based on your preferred risk and return profile.
- Do-It-For-Me (Default Option): This is the best choice if you are unsure which Fund suits you the most. We will allocate your contributions into one of the Core Funds based on your year of birth as listed in the table below.
|Year of birth
|Expected year of retirement*
|Principal Islamic RetireEasy 2060/
Principal RetireEasy 2060
|1996 – 2005
|2051 – 2060
|Principal Islamic RetireEasy 2050/
Principal RetireEasy 2050
|1986 – 1995
|2041 – 2050
|Principal Islamic RetireEasy 2040/
Principal RetireEasy 2040
|1976 – 1985
|2031 – 2040
|Principal Islamic RetireEasy 2030/
Principal RetireEasy 2030
|1968 – 1975
|2023 – 2030
|Principal Islamic RetireEasy Income/
Principal RetireEasy Income
|On or before 1967
|N/A – Retired
* Based on the retirement age of 55 years old specified by the Securities Commission Malaysia under the Guidelines on Private Retirement Schemes.
Nomination in PRS is the process of naming an individual(s) to either administer (for a Muslim member) or to receive the PRS balances upon the PRS member’s death. Nomination is important to help ease the process of transferring a member’s assets to the rightful heirs in the event of the ’member’s demise. In the absence of a nomination, the legal heirs of the person may have to go through a longer and complicated process to inherit the assets of the demised.
For more information, please refer to the Frequently-Asked Questions (FAQ) on PRS Nomination.
When you invest with Principal, you’re investing with a company that understands retirement and our customers desires to achieve their financial goals.
Our offering provides:
Choice and convenience
- Conventional or Islamic private retirement schemes.
- Variety of funds to best meet your goals, risk appetite and time horizon.
- Ability to update your investment choices as and when desired.
- Automate investment via regular monthly contributions or a lump sum contribution; you determine how much and how often you want to contribute.
- Track your retirement in a click of a button with PRS Plus Online.
Strong investment performance
We’re an award-winning house with local and global investment capabilities. We are focused on the fundamentals and have adopted a selective stocks and bonds/sukuk selection process. You benefit from our local presence, timely research and market insights and a strong investment team of over 40 professionals. Our focus is on the long-term and ensuring our portfolios deliver consistent results.
We’re in the business of helping customers achieve their long-term financial goals. We understand investing and offer you the tools, resources and solutions to do so. Plus, we are backed by our majority shareholder, Principal Financial Group which offers global experience and is a retirement leader.
As a PRS member customers, you’ll receive the latest information and education to help make decisions when it comes to optimising your retirement savings.
How much will you need in retirement?
Use this calculator from Private Pension Administrator to find out.
When you offer PRS benefits at the worksite, you are:
- Offering a competitive benefit that helps employees save for their retirement and diversify their investments.
- Taking an active role in helping employees' reach their retirement goals.
Benefit from tax advantages – the scheme provides:
- A tax efficient way of enhancing your total remuneration package; up to 19% of your contributions are tax deductible of the total remuneration of employees – inclusive of the mandatory employer contribution.
- An additional way for employees to trim their income tax bill when they make his or her own contribution.
Additional program benefits:
- It’s a perfect complement to mandatory retirement savings (EPF); allowing you to:
- Contribute on behalf of its employees, above your mandatory rate of contribution (if desired)
- Help employees re-direct additional contributions by the company above the required contribution (if any) to PRS
- There are no subscription fees or charges to the employer for participating in the program.
Click here to learn more on our Corporate PRS benefits
Our latest articles
Notification to Core Fund Members - Principal PRS Plus & Principal Islamic PRS Plus
Announcement on Distribution of Income for Principal PRS Plus (“PRS”)
Announcement on Distribution of Income for Principal Islamic PRS Plus ("PRS")
Click here to read on General Private Retirement Scheme (PRS) Information.
Principal Malaysia PRS Forms
Here are the list of PRS forms you can download: