Don’t miss out on RM3,000 in tax relief with PRS via Versa mobile app
KUALA LUMPUR, Dec 20— To many people, retirement may seem a distant thing to be concerned about.
Yet, if you plan to have a comfortable retired life, financial planning is of utmost importance.
According to a report last year from the Employees Provident Fund (EPF), it was projected that Malaysians who plan to retire in 20 to 30 years from now will need to have savings of between RM900,000 and RM1 million if they wish to have a comfortable retirement.
But the number is far from reality for most Malaysians.
Prime Minister Datuk Seri Anwar Ibrahim revealed in April that as of December last year, 81 per cent of EPF members will not have sufficient savings to live above the poverty line of RM2,589 after their retirement.
That means, only 19 per cent of the members had reached the basic savings threshold to enable them to have RM240,000 in savings by age 55.
The worrying figures show Malaysians should step up their retirement planning, which involves contributing to EPF and private retirement schemes (PRS), exploring healthcare options in their golden years, and preparing for a retiree lifestyle without steady income.
In Malaysia, apart from EPF, there is also the Private Retirement Scheme (PRS) to enable individuals to create a safety net for their post-retirement days. PRS serves as a complement to EPF.
It is a voluntary, flexible scheme which enables individuals to contribute based on their retirement needs and investment goals, and earn potential returns.
To encourage individuals to have an additional savings scheme, the government has introduced personal tax relief of up to RM3,000 per year for PRS contributors.
For peace of mind, PRS is regulated by the Securities Commission Malaysia and the schemes are safeguarded by the Private Pension Administrator.
Therefore, the funds in PRS are protected from creditors as stated in Section 139ZA of the Capital Markets and Services Act. In simpler terms, Section 139ZA of CMSA ensures that the money a user deposited in PRS cannot be taken away to pay off debts or used as collateral for loans.
As the year is coming to an end, it’s perhaps the best time to maximise your tax relief for the year of assessment 2023 by signing up for PRS.
Thanks to financial services mobile application, Versa, the process of signing up for PRS is made a breeze at your fingertips. Versa users can begin saving for retirement with just RM100.
Versa allows users to conveniently onboard and register all regulatory obligations through the application to enable easy investing.
Users will then be recommended the best PRS fund to fit your risk requirements with no upfront fees.
The application is simple to use and allows quick monitoring of your cash-in, cash-out, reinvestment, bonus and auto-debit activities in the dashboard.
Homegrown digital wealth management app Versa offers a seamless process to users who wish to sign up for the Private Retirement Scheme. — Picture courtesy of Versa
You will also be able to manage your funds to cash in manually from your bank account, automate your savings and investments every month, withdraw funds to your bank account or switch between funds at any time.
It also has an educational tab to enlighten users about recommended saving and investing habits.
Simply invest RM3,000 in PRS via Versa by December 28 to maximise your tax relief for 2023 and also receive a RM110 Versa cash bonus.
Malay Mail readers who have successfully invested RM3,000 in PRS via Versa by 28 December can also receive an additional RM100 Shopee voucher courtesy of Malay Mail.
Vouchers will be awarded within 30 business days following the conclusion of this campaign (terms and conditions apply).
The offer is available for the first 100 new users using VMALAYMAIL promo code.
Surf over here to learn more about PRS and how to use Versa.
Disclaimer: By applying the code, you acknowledge and consent to the sharing of your personal details for the purpose of receiving the RM100 Shopee voucher with Malay Mail.
