RETIREMENT could be the best chapter of your life when you have the time and resources to do the things you have always wanted to do with people closest to you.
To make that happen, it is important that we start saving for retirement as early as possible and steadily build up our retirement funds which we will depend on for the rest of our lives after our working years are over.
Complementary to the mandatory retirement savings, a private retirement scheme (PRS) is a voluntary saving and investment tool designed to help Malaysians save more for their retirement.
To encourage more Malaysians to start saving for their retirement with PRS, an individual who makes contributions to his or her PRS funds is allowed to claim a tax relief of up to RM3,000 by the Inland Revenue Board of Malaysia. This tax incentive is definitely a bonus as you get tax savings deduction (based on tax bracket) on your PRS contributions.
As an illustration, if you are within the RM50,000-RM70,000 taxable income with a 11% tax bracket, you stand to gain tax savings of RM330 from your PRS contribution of RM3,000 for 2023.
If you have not started your PRS account, it is never too late as you can start enjoying the tax savings while it is still available. After all, who does not love tax reliefs. See how you can benefit from the PRS tax relief at www.ppa.my/taxrelief/.
It is now easier for PRS members to enjoy yearly PRS tax relief via PPA’s PRS Online Top Up.
The online service makes it convenient and hassle-free for PRS members to top up their PRS funds directly from their smartphones, tablet or computer.
All they need to do is top up their PRS accounts with PRS Online Top Up before Thursday at www.prsmember.my/login.
Building adequate and sustainable retirement savings for our nest egg requires staying on course to make regular contributions for our retirement while we are gainfully employed.
With a retirement scheme such as PRS, you receive the best of both worlds – gaining annual tax relief while saving more for your retirement.
This article is contributed by Private Pension Administrator Malaysia, which is the central administrator of private retirement schemes.
