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:
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 2021.
Do-It-For-Me caters to those who want to leave their investment decision to the experts while building a solid foundation for retirement. Under this approach, you choose either Principal PRS Plus or Principal Islamic PRS Plus. Then, the appropriate fund* will be automatically selected based on your age. When you reach the next age bracket, your savings and gains will be moved to the next appropriate fund*.
Do-It-Myself has been created for those who are comfortable with investment concepts and prefer to keep an active eye on their retirement investments. You can choose from the 10 funds that best suit you, taking into consideration all your retirement planning needs and other investments you may have.
|Private Retirement Scheme||Principal PRS Plus||Principal Islamic PRS Plus|
|Do-It-Myself||Do-It-For-Me||50 years & above||Principal PRS Plus Conservative||Principal Islamic PRS Plus Conservative|
|40 - 49 years||Principal PRS Plus Moderate||Principal Islamic PRS Plus Moderate|
|Below 40 years||Principal PRS Plus Growth||Principal Islamic PRS Plus Growth|
|Principal PRS Plus Equity||Principal Islamic PRS Plus Equity|
|Principal PRS Plus Asia Pacific Ex Japan Equity||Principal Islamic PRS Plus Asia Pacific Ex Japan Equity|
Note: *Refer to the table
When you invest with Principal, you’re investing with a company that understands retirement and our customers desires to achieve their financial goals.
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.
Read this FAQ for taking early PRS Pre-Retirement withdrawal without tax penalty.
When you offer PRS benefits at the worksite, you are:
Benefit from tax advantages – the scheme provides:
Additional program benefits:
Click here to learn more on our Corporate PRS benefits
Click here to read on General Private Retirement Scheme (PRS) Information.
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