Taken fr PPA:

1. Withdrawals from PRS or from any funds under PRS may be made in part or in full after the day the member reaches retirement age, which is currently 55;

2. While pre-retirement withdrawal may be made for any reason, a tax penalty of 8% on the withdrawal amount will be deducted by the PRS Providers before the balance is credited to the member’s account.

My question is:
If next year they change retirement age to 60 then any withdrawal btw age 55 to 60 will be consider as pre-retirement withdrawal and incur a 8% penalty?

Already gazetted will starts 1-July-2013.

"The Minimum Retirement Age Act 2012 stipulates that the minimum retirement age for the private sector is 60 and employers cannot force the employee to retire before reaching that age. The Act was passed by parliament on July 17 and gazetted on Aug 16 this year"

This post has been edited by MGM: Dec 19 2012, 10:43 AM

For PRS investors who are 55yo n above, can they put in PRS in 2012 and sell off the next year, there won't be any 8% penalty and yet they will have tax saving (from tax relief)? Sure gain?
IF that is the case, it would be more advantages to buy from providers with 0% sales charge.

Called HwangIM, the Head of Branch suggested to invest in their conservative funds cos market is a bit peak"ish" and to switch when market corrected. Most Asian stockmarkets are at their tops except China.

Was told that at this moment retirement age is still 55 so any funds bought can still be withdrawn after 55yo, correct?

Would like to know the answer esp from PRS agents, bkwu and Fat3Twister?


This post has been edited by MGM: Dec 22 2012, 06:02 AM

No, it is optional.

This website did an analysis on Hwang PRS prospectus. It stressed on higher management fees and allowable adjustment to sales and redemption charges of up to 3% and trustee fees of 1%. Same with PRS from other providers?

http://www.howtofinancemoney.com/2012/11/p...e-analysis.html

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Added on December 26, 2012, 5:45 pmHow does CIMB qualifies an investor Class A or C?

This post has been edited by MGM: Dec 26 2012, 05:45 PM