108. In the 2011 Budget,  to ensure private sector employee and self-employed to have sufficient savings upon retirement,  I announced a tax relief up to RM6,000 for EPF and life insurance be extended to the Private Pension Fund now known as Private Retirement Scheme. In order to ensure the welfare of retirees upon reaching retirement age to live a comfortable life, I propose:

First:  A new tax relief up to RM3,000 on contribution to a Private Retirement Scheme and insurance annuity for 10 years. Thus, the existing relief on Private Retirement Scheme and insurance annuity is rationalised;

Second:  Tax deduction on employers’ contributions to a Private Retirement Scheme for their employees; and

Third:    Tax exemption on income of Private Retirement Fund.

This maybe?

http://www.hsbc.com.mt/1/2/insurance/financial-future/prp
http://www.unicover.co.za/

This type of Private Retirement Fund doesn't exist yet in Malaysia.
So Najib is just giving you "something" which you won't get "anything"

Very well explained . . . Only product with PRU can be exempted for Tax Relief is PRURetirement Reward.
Find out more in the forum. 

may I know are there double charge by the PRS fund for management fee?
ie.

PRS fund will invest into unit trust only by respective company?
,
for example

PRS growth fund by HDBS , annual management fee 1.8 %

and this PRS growth fund HDBS invested in UNIT trust by their company ,HDBS eg, HDBS equity fund, etc.

and this HDBS equity fund also have annual management fee of 1.8 %

so if u invested in this  HDBS PRS growth  fund,  this fund really no need to do anything and but just help u buy unit trust can get management fee of 1.8 %

so is it end up, u will get charge annual management fee x2 which is 1.8 % by this PRS fund , and the unit trust invested by this fund another 1.8 %

so end up... if u invested rm 100,  1.8 %+1.8 %= 3.6 % will be gtg to the same unit trust company...

can any 1 enlighten me on the above issue? on double charge of management fee? I cant get any info online and it was not reveal in any website on this hidden cost

is there a deduction fee annually? meaning if i contribute rm1000/yr, means i only have rm800 in the following year, due to deduction of rm200 fees?

Ok just did a quick check this am and found that the RM500 was indeed credited, but the recent fall in NAV meant that the value was closer to RM400 :/

Can someone help me on this, I interested to ask my mom to invest in PRS due to the tax rebate, but based on my mom salary n after calculate, how much refund you can get from 3k investment not according to your tax bracket..here the calculation for discussion

before PRS
-------------
Salary 90k
-rebat without PRS = 20k ( Kwsp,insuran, child, zakat )

taxable income = 70k

according to LHDN tax bracket for 2015 onwards - http://www.hasil.gov.my/goindex.php?kump=5...it=5000&sequ=11

first 70k = RM5600

Tax need to pay = Rm5600

After invest in PRS
----------------------
Salary 90k
-rebat with PRS = 23k (Kwsp,insuran, child,zakat + add 3k for PRS)

taxable income =  67000 
tax calculation ( 50k - 70k tax bracket)
First 50000 = RM2,400
next 17000 = RM 2,720
  
Tax need to pay = RM5,120
Difference( before - after ) RM5600 - Rm5570 = Rm480 !!

only RM30 difference?? so seem like it not worth it for my mom to invest in PRS right..better go for the normal mutual fund then.

My tax calculation correct or not :-P

Owh...My Bad, I put wrong value for the 1st 50k, thank you for correct me..now it more sense to propose my mom to invest in PRS.

Thanks

no CIMB PRS that feed into Ponzi 2.0?   

IF the right PRS horse is selected......the returns are much more than that..

who knows how it goes....but you have 2 better chances of winning.....
if your selected horse win. you won + RM 8 (you saved earlier)
if your selected horse is neck to neck, you won RM 8 (you saved earlier)
if your selected horse lose, you lose

   

are we allow to switch the rm500 given by the govt to other prf fund?

Last minute (as usual) need to spend my 3k into PRS.

I have Pub Mutual and Affin Hwang.    Shall i continue with Affin or find new PRS provider?  If new, how to top up / open account?

Many thanks.

20 years ago (in my early 20s), when I was a panel member fomulating PRS for G/EPF, many of my peers from various financial institutions vehemently oppose PRS after reviewing the base case/best case financial models/outcomes.

G/EPF refused to accept this, even with their mandate at hand.

In time, i think give another 20 years or so, PRS will be a flop with real negative returns.  Just as in 401k.

hi, i wanna ask a noob question.
As i know, PRS is for long term investment. We cant withdraw money early as there will be certain fine impose on the early withdrawal. Which means, it need to be keep up to the age of retirement, and it could be around 20+/30+ years.

So, all the ups and downs now are like paper gain/paper loss. what if the market during retirement is very bad, and therefore, the returns are really low???

  noob noob me