maybe this is applicable??

How long will the i-Lestari Withdrawal facility be made available?
The i-Lestari Withdrawal facility is available from 1 April 2020 to 31 March 2021.

I lestari FAQs..
https://www.kwsp.gov.my/faq-i-lestari

not really lesser lah, you still have the same amount of money, saved in EPF.

thanks, will take a read shortly.

If you do it in May after the cut off date, you'll get 11 x RM 500.
If you do it in June after the cut off date, you'll get 10 x RM 500.

Am I wrong?

you misunderstood me and you're not wrong bro.

yes, the amount you will have on hand is lesser.

assuming zero usage/interest, the total amount you will have (in totality) is still the same, just in EPF nia.

It's just a banter, chill

iLestari to partly fund the start-up of a new business, make sense?

I would be very surprised if the dividend can be higher than the minimum target of 2.50%. And also this they will have to pay out from the substance.

I'd be surprise if its more than bank FD rate.

This post has been edited by Leo the Lion: Apr 19 2020, 06:37 PM

Hi sir. I'm quite confused about this. Went to investmart exhibition last year and a guy explained to me about PRS. I fall under the 24% tax bracket. He calculated and same as your figure it would be tax saving of RM720. I was not convinced that PRS is worthwhile. may I know what you mean by 'make' RM3k? and also, is the tax relief fall under 'EPF and life insurance'? because if it is, it's already maxed out to 6k. I'm trying to figure out the benefits of PRS.

I think he meant is "make 3k X 15% and higher, ie. pay less tax $450 to $720"
not "make" 3k but the amount of tax saving due to the % of tax bracket

PRS 3k is another category that qualify for tax relief....after insurance and epf category

This post has been edited by MUM: Apr 20 2020, 06:25 PM

PRS has its own tax relief which is not shared with EPF & life insurance.

Skim persaraan swasta dan anuiti tertangguh (‘Deferred Annuity’)
 Potongan ini berkuat kuasa mulai Tahun Taksiran 2012 hingga 2021.
 Potongan tidak melebihi RM3,000 dibenarkan bagi jumlah caruman yang dibuat kepada Skim Persaraan Swasta (SPS) yang diluluskan oleh Suruhanjaya Sekuriti dan bayaran premium untuk anuiti tertangguh.
 Jumlah potongan bagi caruman kepada SPS dan bayaran premium untuk anuiti tertangguh adalah terhad kepada RM3,000 untuk individu dan RM3,000 untuk pasangan yang mempunyai punca pendapatan. Jika suami atau isteri memilih taksiran bersama, potongan yang dibenarkan bagi jumlah caruman kepada SPS dan bayaran premium anuiti tertangguh adalah terhad kepada RM3,000.

This post has been edited by GrumpyNooby: Apr 20 2020, 06:26 PM

Min 2.5% p.a is required by the Law. Only more and not less. Lately they have been doing some profit taking. Hmmmm...let's see.

Thank you for the clarification.What I don't understand is why bankers try to convince you to invest in PRS by telling you about this tax relief thing. I mean they really emphasize about it. I know rm720 is still money but it's rm720. I'm pretty sure there are other benefits or advantages of investing in PRS other than this tax relief.

Tax relief is guaranteed and direct calculation.
Other benefits of PRS is not guaranteed like normal unit trusts/mutual funds as their performance is projected and driven by market performance (condition).

LOL, this is not "benefit" but a big disadvantage of PRS.

Until now, many PRS are underperform compared to EPF, a small number even registered negative figure. While EPF has a peace of mind of capital guarantee with a more steady return.

Tax saving is one just off for particular year, but performance of fund is long term which has more implication of the money saved. A differentiate of 1~2% less performance compared to EPF, can have big difference on the final outcome.

If already want to invest into unit trust in the first place, then by going into PRS to have tax saving - ok
But not solely because of tax saving, then blindly going into PRS - not ok.

I'm not forcing him to commit to PRS nor selling PRS in here at all.
Why are you shooting over this statement?
The word "benefit" is not originated from me.
PRS is on voluntarily basis and up to individual financial capacity.

Just find the word "benefit" weird, when reading the statement.
Not meant to "shoot" or whatever.

Just post just in case people too focus on tax saving side of perspective, and forgetting about the PRS risk compared to EPF.
PRS is never the same with EPF. They are in different league and different risk exposure.

Cheers.

1. To declare at least 2.50 per cent nominal
dividend on a yearly basis; and

2. To declare at least 2 per cent real dividend
(inflation adjusted) on a rolling three-year
basis.

I suppose you informed the Banker you don't have unit trust. Given that PRS has the added advantage of tax savings compared to unit trust, likely he wants to sell you PRS to get started. With PRS you also run the risk of penalty for early withdrawal.