I do a lots of thinking recently bout retirement. Since that i will turn 40 this year, how many years i need to work again so that i can retire. Well, the result turn out to be quite disappointed. So, I make up my mind to set a goal I MUST RETIRE BEFORE 55 WITH MYR 1500K SAVING. I do some resources and paste it here so that i can keen remind myself about my goal and how I can help my son to retire young.
This Retirement Saving Scheme is designed to provide individuals without a fixed monthly income with a degree of financial security in their old age. The retirement scheme will be open to self-employed individuals such as farmers, fishermen and taxi drivers to petty traders and business owners.
Unlike the conventional EPF saving scheme, the amount contributed into the 1Malaysia Retirement Saving Scheme was entirely at the contributor’s discretion. Contributors can choose to contribute at least RM50 or up to maximum of RM5,000 per month as their retirement savings. Contribution is totally voluntary and contributors are also not required to contribute savings on a monthly basis but when they can afford to.
Savings under this scheme will receive annual dividends as declared by the EPF with additional 5 per cent which contribute by the Government. However, the additional dividend is capped at maximum of RM60 per year for the next five years from 2010 to2014.
Those interested to apply for the scheme can fill the KWSP 16G (1M) Form which is available at any EPF branch nationwide or download from the myEPF website at www.kwsp.gov.my starting from 3rd January 2010. The forms are to be returned at any EPF branch or by mail.
However, individuals who are not EPF members have to register with the EPF first by completing KWSP 3 Form and submitting it to the EPF before applying for the scheme.Existing EPF members, who turn self-employed, are also eligible and may opt for this new scheme.
Savings for the scheme can be deposited via cash or cheque using the KWSP 6A(2) Form at any EPF Payment Counter nationwide and withdrawals are governed by the present EPF withdrawal procedures and conditions.
Starting from 3rd January 2010, Employees Provident Fund (EPF) will launch 1Malaysia Retirement Saving Scheme to help self-employed financially during their retirement age. This scheme was announced last October by the Prime Minister during the tabling of the 2010 Budget.
This Retirement Saving Scheme is designed to provide individuals without a fixed monthly income with a degree of financial security in their old age. The retirement scheme will be open to self-employed individuals such as farmers, fishermen and taxi drivers to petty traders and business owners.
Unlike the conventional EPF saving scheme, the amount contributed into the 1Malaysia Retirement Saving Scheme was entirely at the contributor’s discretion. Contributors can choose to contribute at least RM50 or up to maximum of RM5,000 per month as their retirement savings. Contribution is totally voluntary and contributors are also not required to contribute savings on a monthly basis but when they can afford to.
Savings under this scheme will receive annual dividends as declared by the EPF with additional 5 per cent which contribute by the Government. However, the additional dividend is capped at maximum of RM60 per year for the next five years from 2010 to2014.
Those interested to apply for the scheme can fill the KWSP 16G (1M) Form which is available at any EPF branch nationwide or download from the myEPF website at www.kwsp.gov.my starting from 3rd January 2010. The forms are to be returned at any EPF branch or by mail.
However, individuals who are not EPF members have to register with the EPF first by completing KWSP 3 Form and submitting it to the EPF before applying for the scheme.Existing EPF members, who turn self-employed, are also eligible and may opt for this new scheme.
Savings for the scheme can be deposited via cash or cheque using the KWSP 6A(2) Form at any EPF Payment Counter nationwide and withdrawals are governed by the present EPF withdrawal procedures and conditions.
The main features of PRS, is a voluntary long-term investment scheme designed to help individuals accumulate savings for retirement. It complements the mandatory contributions made to EPF and contributor will be entitled for tax relief up to RM3,000 per annum until 2021.
Below are the full description of PRS.
1.New Retirement Scheme for Self Employed
Starting from 3rd January 2010, Employees Provident Fund (EPF) will launch 1Malaysia Retirement Saving Scheme to help self-employed financially during their retirement age. This scheme was announced last October by the Prime Minister during the tabling of the 2010 Budget.
This Retirement Saving Scheme is designed to provide individuals without a fixed monthly income with a degree of financial security in their old age. The retirement scheme will be open to self-employed individuals such as farmers, fishermen and taxi drivers to petty traders and business owners.
Unlike the conventional EPF saving scheme, the amount contributed into the 1Malaysia Retirement Saving Scheme was entirely at the contributor’s discretion. Contributors can choose to contribute at least RM50 or up to maximum of RM5,000 per month as their retirement savings. Contribution is totally voluntary and contributors are also not required to contribute savings on a monthly basis but when they can afford to.
Savings under this scheme will receive annual dividends as declared by the EPF with additional 5 per cent which contribute by the Government. However, the additional dividend is capped at maximum of RM60 per year for the next five years from 2010 to2014.
Those interested to apply for the scheme can fill the KWSP 16G (1M) Form which is available at any EPF branch nationwide or download from the myEPF website at www.kwsp.gov.my starting from 3rd January 2010. The forms are to be returned at any EPF branch or by mail.
However, individuals who are not EPF members have to register with the EPF first by completing KWSP 3 Form and submitting it to the EPF before applying for the scheme.Existing EPF members, who turn self-employed, are also eligible and may opt for this new scheme.
Savings for the scheme can be deposited via cash or cheque using the KWSP 6A(2) Form at any EPF Payment Counter nationwide and withdrawals are governed by the present EPF withdrawal procedures and conditions.
Starting from 3rd January 2010, Employees Provident Fund (EPF) will launch 1Malaysia Retirement Saving Scheme to help self-employed financially during their retirement age. This scheme was announced last October by the Prime Minister during the tabling of the 2010 Budget.
This Retirement Saving Scheme is designed to provide individuals without a fixed monthly income with a degree of financial security in their old age. The retirement scheme will be open to self-employed individuals such as farmers, fishermen and taxi drivers to petty traders and business owners.
Unlike the conventional EPF saving scheme, the amount contributed into the 1Malaysia Retirement Saving Scheme was entirely at the contributor’s discretion. Contributors can choose to contribute at least RM50 or up to maximum of RM5,000 per month as their retirement savings. Contribution is totally voluntary and contributors are also not required to contribute savings on a monthly basis but when they can afford to.
Savings under this scheme will receive annual dividends as declared by the EPF with additional 5 per cent which contribute by the Government. However, the additional dividend is capped at maximum of RM60 per year for the next five years from 2010 to2014.
Those interested to apply for the scheme can fill the KWSP 16G (1M) Form which is available at any EPF branch nationwide or download from the myEPF website at www.kwsp.gov.my starting from 3rd January 2010. The forms are to be returned at any EPF branch or by mail.
However, individuals who are not EPF members have to register with the EPF first by completing KWSP 3 Form and submitting it to the EPF before applying for the scheme.Existing EPF members, who turn self-employed, are also eligible and may opt for this new scheme.
Savings for the scheme can be deposited via cash or cheque using the KWSP 6A(2) Form at any EPF Payment Counter nationwide and withdrawals are governed by the present EPF withdrawal procedures and conditions.
2.Malaysia’s Private Retirement Scheme (PRS)
The government has been concerned about the inadequacy of EPF savings for the retirees. The statistics show that 50% of contributors exhaust all of their EPF savings within five years of retirement and only 18% of active members aged 54 have adequate savings of at least RM173,000. To overcome this problem, Private Retirement Scheme (Scheme) was introduced in the 2012 budget in October 2011.
PRS is being administer by Private Pension Administrator (PPA). After more than a year, the government has approved 8 funds & they will be ready to accept fund soon.The main features of PRS, is a voluntary long-term investment scheme designed to help individuals accumulate savings for retirement. It complements the mandatory contributions made to EPF and contributor will be entitled for tax relief up to RM3,000 per annum until 2021.
Below are the full description of PRS.
| Description | |
|---|---|
| What is PRS? | A private retirement scheme (PRS) is a voluntary long-term investment scheme designed to help individuals accumulate savings for retirement. It complements the mandatory contributions made to EPF. |
| Contribution Type, Amount and Frequency | PRS is fully on a voluntary basis. There is no minimum amount or frequency for the contribution. |
| PRS Account | PRS is split into two accounts. 70 per cent in Account A and 30 per cent in Account B. |
| Tax Benefit | – Contributors will be entitled for tax relief up to RM3,000 per annum until 2021. – Employers will also be given tax deduction on contributions to PRS made on behalf of their employees above the EPF statutory rate up to 19% of the employees’ remuneration. |
| Withdrawal | – Partial withdrawal can be made from account B. Withdrawal can be made for any reason with 8% tax penalty on the withdrawal amount. – Full withdraw upon reaching 55 years old, death or emigration. |
| Dividend | Solely depend on the fund’s performance. |
| Approved PRS Providers | 1. AmInvestment Management Sdn Bhd 2. American International Assurance Bhd 3. CIMB-Principal Asset Management Bhd 4. Hwang Investment Management Berhad 5. ING Funds Bhd 6. Manulife Unit Trust Bhd 7. Public Mutual Bhd 8. RHB Investment Management Sdn Bhd |
| Approved Funds | Each PRS provider has multiple funds. Check with PPA website or PRS Provider directly |
| Fees | Each fund has different fee structure. Check with PPA website or PRS Provider directly |
| Fund Choices | Contributor may contribute to more than one fund under the same providers or to more than one providers. A default option would also be made available. |
| Fund Switching | Contributors are allowed to switch funds within the same PRS Provider at any time, or change to another PRS Provider once a year. |
| Account Monitoring | Members will be able to check online via the PPA website or contact the relevant PRS Provider. |
| How to join? | – Contact your chosen the PRS Provider. Must be at least 18 years old. Proof of identification (Identification card / Police / Armed Force ID (for Malaysians) or Passport (for foreigners) is required for account opening. -You may open a PPA account by completing an account opening form. Once opened, you will receive your life-time account number and password. |
