NO SALES CHARGE IF SIGN UP VIA PRIVATE RETIREMENT SCHEME ONLINE
New private retirement scheme (PRS) subscribers aged 30 years and below will now enjoy zero sales charges with selected PRS providers when they sign up via PRS Online.
Under the TN50 PRS partnership between Securities Commission (SC) and the Ministry of Youth and Sports (KBS), officially launched by its minister Khairy Jamaluddin yesterday, also saw the launch of a new mobile application for members by Private Pension Administrator (PPA) to manage their PRS accounts.
Launched today, the PRS Online is a one-stop online platform that allows direct subscription for PRS schemes through PPA website.
With these new additions, it is aime to enhance greater awareness and understanding on the importance of early retirement planning and to encourage participation in PRS among the youths.
“The PRS increasingly serves as a critical voluntary avenue to accumulate retirement savings given the increasing life expectancies and the intent to achieve better living standards for Malaysians upon retirement.
“Stemming from the various initiatives that have been put in place, we are heartened by the encouraging outcomes of the overall PRS industry which has seen steady growth year-on-year,” SC chairman Tan Sri Ranjit Ajit Singh said in his speech during the launch of TN50 PRS Youth Incentive (TN50 PRS) here yesterday.
Ranjit said when the PRS Youth Incentive was announced by Prime Minister Datuk Seri Najib Razak in Budget 2014, it was a conscious move to increase youth participation in planning for retirement.
The incentive is geared towards youths aged between 20 and 30 years, and initially involved a RM500 one-off government top-up with a minimum contribution of RM1,000 by the youth in any PRS fund.
The incentive was further enhanced in Budget 2017 where the amount has now doubled to RM1,000, in the government’s effort to capitalise on the momentum of youth enrolment in PRS.
Touching on the numbers, Ranjit said 2017 was a record year for (PRS) with highest number of new members since its launch over five years ago.
He said the total number of members grew by 36 per cent to 301,279 in 2017, from 221,235 in 2016.
Total asset under management of the 56 existing PRS funds rose by 47 per cent to close the year at RM2.23 billion, from RM1.51 billion the year before.
Youth segment accounted for seven per cent of total PRS membership in 2013, but the figure increased significantly to 28 per cent as at December 2017.
He said this is reflected by the achievements made by the Private Pension Administrator (PPA) coupled with the government’s initiatives as announced in its federal budgets to educate and encourage Malaysians to invest in PRS as a critical voluntary savings avenue.