I think some people misunderstood how to claim tax relief for PRS.

When you save RM3k in your PRS account, it does not mean you can claim RM3k from LHDN.

This is how to calculate:
Let's say you earn RM100k annually
And you save RM3k in your PRS account

RM100k-3k = 97k

So, RM97k is your taxable income.

I would say PRS is a very good investment scheme
If I can switch EPF to PRS I would do it

Your statement is right. Each investment might look similar but serve to a different objective.

UT is considered active investment where you need to monitor the price every now and then, the objective is to accumulate wealth within a period of time.

PRS has a different objective where it targets for your retirement age, thus it is not advisable to withdraw though you can after 1 year and subject to 8% penalty charge. Employer also can contribute without a fix amount or term. This type of retirement scheme is common in other countries but still considered new in Malaysia. You can also choose the risk profile which suits you whether its conservative, moderate or aggressive. Yes, the return not guaranteed and can be no dividend and all (same thing with UT) but PRS is meant for long term investment and you can switch to other operator if you wish.

1. Tax relief
2. RM500 incentive if you're below 30
3. Potential higher return than EPF

LOL
Time for tax claim baby!!

First rule, its a long term investment. You need at least 3-5 years to see the profit.
Second, you can switch fund to other provider if you're not satisfy with the result (but make sure you do rule no 1 first)
Third, do a little research bro, don't fall for marketing strategy of a certain company. Sales person can say many things but Bloomberg chart cannot lie

commonly PRS sales charge is between 0-3%

normal individual contribution = 3%
corporate contribution*= 0-2%

*subject to terms & condition. Normally a PRS provider will waive the sales charge if the company agrees to contribute with minimum number of participant (staff), of course this tnc may differ depends on the PRS provider.

No, you cannot use EPF money to contribute to PRS
PRS must use cash only, similar like the way you contribute to EPF.
Bear in mind that PRS is the second EPF
However EPF money can be withdraw from account 1 to invest in Unit Trust, subject to calculation based on your age

Insurance is mainly for protection. Anything gained from investment-linked portfolio are bonus for the client. One does not sign up for any insurance program with intention to invest.

If you want to invest, look for investment company, not insurance company.
An insurance agent also should not promote the insurance product as an 'investment'

However, in personal financial rule, protection always come first before investment. Being said that, you are encourage to have insurance protection first thing before you start to invest. Investment only meant for the extra money you have which you can afford to lose.

PM me, I can help you.

If you're still below 30 yes, you can get the RM500

PRS started in 2012, and the govt gave 10 years for tax relief. That is until 2021.
After 2021 the policy may be revised, I heard it maybe increased to RM6k.., but cannot confirm now

By contributing RM3k to PRS, the taxable income is:
your annual income - PRS contribution amount (RM3k) = taxable income

It doesn't mean you contribute RM3k you can claim RM3k from LHDN
The more you contribute the more you can claim... up to RM3k max

This post has been edited by nashburn: Dec 21 2015, 05:06 PM

Can withdraw after 1 year. But subject to 8% penalty charges.. because strictly for retirement purpose.