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Can you survive living on your retirement in Malaysia?

Building the retirement nest Most Malaysians aren't saving enough money for retirement, according to a slew of new data which shows that Malaysians are unprepared for their golden years. by 2020 3.2 million Malaysians will be of retirement age One in 10 Malaysians Not prepared for retirement 28% never saved for retirement 43% 28% 10 43% inadequately prepared Retirement: A reality check 72% 50% of EPF members age 54 years had less than RM50,000 as end of 2011 RM149,216.76 EPF member's average saving at age 54 in 2011 of retiress spend their entire EPF savings within 5 years Average retirement period: 15 years New Regulation RM196,800 Minimum basic savings by age 55 as of December 2013 New minimum age 60 as of luly 2012 Average life expectancy of 75 years amongst Malaysian The good news: Private Retirement Scheme (PRS) What is PRS? PRS is a voluntary retirement saving scheme designed to supplement mandatory pension saving and provide additional funding for retirement. Why you should consider PRS? How much do you need for your retirement income? How much do you need to save? 66% 33% 1/3 2/3 of your monthly income, starting at age 25 of your monthly pre-retirement income RM3,000 x 2/3 = You need RM2,000 a month post- employment 11% 12% 10% Individual contribution Employer contribution Regular voluntary for EPF for EPF contribution for PRS How does it work? Choose a PRS Provider & fund according to your risk appetite & PRS Provider manages fund according to fund's investment strategy investment PRS Provider Funds accumulated (capital + returns) can be withdrawn upon retirement/early withdrawal Determine the profile invests your contributions based additional saving amount to supplement your EPF savings on the asset allocation of your chosen fund The younger you start your PRS contribution, the more you'd have for your retirement. The advantages of PRS TAX RM3,000 per annum RM500 one-off incentive for 20-30 year-old individual who invest a minimum of RM1,000 contribution in PRS within a year tax relief for an individual's contribution to the PRS for the first 10 years from assessment year 2012 Get started now! When it comes to retirement planning, saving early is saving smart. in collaboration with Sources: Private Pension Administrator Employees Provident Fund HSBC Life After Work Malaysia Report 2013 Organisation for Economic Co-operation and Development (OECD) Department of Statistics Malaysia iMoney.mY PRS Created on: February 2014 Contact: [email protected] b Iet Retieamy/ Enjoy O fb.com/iMoney.my O iMoney.my O @iMoneyTEAM O @iMoney_Malaysia

Can you survive living on your retirement in Malaysia?

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If you’re an employed Malaysian, your strategy for a retirement fund probably only includes stashing money in the Employees Provident Fund (EPF). What’s not to like about EPF? Contributions are ma...

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