Wednesday, August 13, 2014

Why I invested in Private Retirement Scheme (PRS)?

If you've read my earlier post here, you will know that I had made my first Private Retirement Scheme (PRS) investment in December last year. I read from The Star Online that, as at 31 August 2013, there were 36,663 PRS contributors. Seems like not so many are interested to invest in PRS. Or maybe the figures had significantly increase by now?

Personally, there are 2 reasons why I invested in PRS:

1) Individual Income Tax Relief
This is the main attraction. Tax relief of up to RM3,000 per year for taxable income for the first 10 years starting from assessment year 2012. I've missed out assessment year 2012. So, I have about 8 more years to go.

2) To Compliment my KWSP@EPF Savings
One thing I am very sure is that I cannot rely on my KWSP@EPF savings alone for my retirement planning. I am definitely sure, my KWSP@EPF savings will not be sufficient to support me and my lifestyle in my golden years. So, this PRS investment is an add on to my existing investment portfolio. It is also a force savings for me. Hopefully, over the years, my PRS investment will grow into a significant amount.

photo credit: 401(K) 2013 via photopin cc


  1. While your principal is not guaranteed in PRS, it is still a good effort.At the very least, you are thinking about your retirement and worry about your EPF fund being insufficient. That itself helps you to be more rational when managing your everyday finance. There are still many people out there that spends more than what they earn, go into debts and worse still,end up being bankrupt.

  2. Good sharing, AmInvest provides and has in place the building blocks to smooth your transition into retirement and help you live your retirement dreams. They offer Private Retirement Scheme (PRS) core funds or “default options” that cater to different age groups and differ in terms of the level of exposure to an equity portfolio based on investor’s risk tolerance which is good as a starting point. For detail visit: