KUALA LUMPUR, Oct 25 — There have been numerous articles over the years that Malaysians are ill-equipped financially to retire. Even with their EPF savings.

This means many have had to delay retirement or find alternate means of income past the conventional retirement age of 60.

That is where the Private Retirement Scheme (PRS) launched in 2012 comes in. It is a way for people to build up their retirement income other than just rely on their EPF.

So what exactly is the Private Retirement Scheme (PRS)?

PRS is a voluntary investment scheme meant to help you accumulate savings for retirement.

This is useful for those who wish to invest and grow their retirement fund but aren’t very savvy in how or what to invest in.

Think of PRS as a complement to and not substitute of EPF.

Like EPF, PRS contributions are also divided into sub-accounts. It is only upon reaching retirement age, or in the case of death or emigration, that withdrawals can be made from sub-account A.

Meanwhile, pre-retirement withdrawals can only be made from sub-account B subject to a tax penalty except in cases of pre-withdrawals for housing or health reasons.

Key differences between EPF and PRS

Firstly, PRS is a voluntary contribution scheme where you can contribute as little or as much as you want.

Secondly, PRS is privately run by financial institutions with no guaranteed returns, unlike the government-owned EPF which guarantees you a minimum dividend per year.

You also have to choose which of the listed PRS providers and their corresponding funds you want to contribute to.

PRS fund managers are required to be approved by the Securities Commission, and all PRS activities are administered by the Private Pension Administrator Malaysia (PPA).

Why choose Versa PRS

Versa PRS is Shariah compliant so you can save and earn with peace of mind. It is also flexible with up to six funds for you to choose from depending on your risk appetite.

There are NO sales fees levied and you do not have to deal with any agents. You can also claim up to RM3,000 tax relief.

For new sign-ups, just use the promo code VERSAMM10 for RM10 Versa Cash bonus after depositing RM100 into any of the funds. Enjoy a further bonus of RM100 Versa Cash when you deposit RM3,000 into any PRS fund from now till December 30, 2024. You may refer to Versa’s terms and conditions here.