A lot of this talk in the news lately by our govt, the main problem is, the low purchasing power of Malaysians.

Not talking to the 1.3% of top earners in Malaysia, but the bottom 65%.

Many are already struggling to get by on day-to-day expenses.

When EPF withdrawal age comes, they will cash out and relieve their tight cash flow.
For many, it's a first time in their life, or for a long time that they can splurge on something. Maybe even first time holiday.

If many are facing this problem on a daily basis, even with PRS providers in place, the people who need it most may find difficulty in contributing.

anyone can answer my question? any minimum saving?

I heard that the Private Pension Administrator (PPA) and the first few Private Retirement Schemes (PRS) will be finally launched next week.

I have just attended a PRS briefing organized by Pub-Mut for their UTC.

So this is the summary:

i) Low Sales Charge < 3%, no fix rate yet.... waiting for Sec-Com to iron out the detail

ii) Low Mngt Fee < 1.5%, again still waiting for Sec-Com to iron out the details with the PRS service provider.

iii) UTC need to get a seperate lic to sell this scheme. This lic comes under Sec-Com and not FIMM. UTC will need to pay an additional licensing fee to Sec-Com to sell this product.

iv) For the time being, only UTC with 3 years experience and above can sell this scheme, but they must attend a PRS familiarisation course which is a two full day course to be run by the respective PRS provider. The course will also earn the UTC 8 CPD pts.

v) Those who have less than three years experience need to sit for a Sec-Com exam. Details to be out later.

vi) After Jul-2013, all UTC who wishes to promote PRS products need to sit for the exam without exception.

vi) CFP, IFP, RFP, ChFC title holder are exempted from the exam but they must also attend the two full days familiarisation program.

vii) There is a RM 3,000.00 tax relief, contribution is flexible and is not statutuory. Contributor can only get 1/3 of their moonies post 50 y/o and all after 55 y/o. The govt is mulling extending this to 55/60 years old. If the contributor chooses to exit the scheme earlier, there wil be an 8% one time exit fee imposed.

My thoughts:

i) This product will probably fail if they expect UTC to sell it. The commission will be very low and UTC need to pay for a seperate license. So the drive to push for this product will not be there.

ii) Contributors will most like stay away from this as their money will be lock up until they turn 55 y/o.

iii) This scheme is going to fail as the carrot does not match the stick.

Xuzen

Kparam77,

what is your thought or opinion on this new development from the perspective of agent and that of a investor?

Thanks,
Xuzen

Hi All Sifu ,

What fund would you all recommend , I really have no idea which fund I should go after .
I just want to invest 3k for the tax rebate before this year end but kinda not sure which to .
If the PRS is paying same as Epf dividend rate is good enough for me ,as long as not making any loss .
Please help all Sifu ....

Thanks kparam .....
I'm 38 years old , I feel more comfortable to go for moderate risk......
Ya kind of like your idea , go by default option ,...
But no idea to go , just want to buy and keep ......