I Invested in a Private Retirement Scheme..Here's How I Did It

I recently invested in a Private Retirement Scheme (PRS) because I found out about the PRS Youth Incentive, where youths up from 20 to 30 years old are entitled for RM1000 from the government if they invested in a minimum of RM1000 in PRS within a 2017-2018. I encourage my young readers to apply for this while the incentive is still available in 2018. I would also like to credit Suraya from ringgitohringgit.com for writing a post about this. Click here if you want to read it. She talks about personal finance on her blog and gives many useful insights, especially to Malaysians. I am inspired to write more personal finance post.

So what is PRS??

It's basically retirement money that you contribute to a provider of your choice. You are free to choose the amount of investment and you are also free to decide how often you want to contribute to it. 70% of your contribution cannot be touched until you've reach retirement age. You are able to withdraw the other 30% anytime but you will be charged a certain percentage so it's best to just leave it untouched.

There are 8 PRS providers that you can choose from: Affin Hwang AM, AIA, AmInvest, CIMB-Principal, Kenanga Investors, Manulife AM, Public Mutual, and RHB AM.

I chose CIMB as my provider. And all I had to do was go to a CIMB branch, ask the person at the information counter to assist me and talk to the designated officer. They will show you a table and ask if you want the 'Do-It-For-Me' or 'Do-It-Myself' option which basically shows the types of investment strategy and their performance. You can read more about all the options here (CIMB-Principal). The 'Do-It-For-Me' options sounded easier so I went ahead with that and automatically got the CIMB-Principle PRS Plus Growth option.

Once I made my decision, I was asked to provide my IC and fill in a form with all my particulars as well as sign a bunch of other forms. After that, I had to take a number and make my first contribution. I did it in one go and paid RM1000 and I was basically done after that but you can also contribute in smaller amounts but I think it's only up to 2018. It's better to contribute one shot now since we have about 5 months left this year. I also asked when will I be getting the RM1000 incentive and the officer told me probably in a few months time, probably next year. That sounded good to me, I will update you guys on how long it took for me. Anyways, they told me that I can top up my PRS funds through CIMB Clicks but so far it hasn't appeared on my CIMB Clicks yet under 'Investments'. They have a new website now so I assume things will be slow.

UPDATE (19/8/2018): It finally appeared on my CIMB Clicks after a month or so.

The value represents the market value of my investment. I hope it will grow in the future!

UPDATE (3/9/2018): I just checked my mail and received a few from CIMB Principle Asset Management with my account number and password (the password came in a separate envelope). This account number and password is used to log into my CIMB-Principal PRS Plus account.

Here are some questions that you guys asked me on my insta stories!

I've been wondering about it. Can you tell us more about PRS?

PRS is a retirement fund similar to EPF but more flexible in a sense.

What is the difference between EPF and PRS?

EPF is a mandatory contribution while PRS is a voluntary contribution. Both serves the same purpose of contributing towards your retirement income.

Private retirement scheme can rebate tax rite? What company and package is there? Which is the best investment?

Yes, tax rebate is up to RM3000 per year. I also found out that the tax incentive will end in 2021, according to the link here. As I mentioned, there are 8 providers, you can check out the list here. The packages of each company are also available in that link. I don't think there is a 'best' investment because it depends on your age and risk tolerance, which you can find out through the officer at the respective provider who will be able to explain it to you better.

Is it eligible for anyone below 30?

The Private Retirement Scheme is eligible for all age groups before retirement, but the PRS Youth Incentive of RM1000 is only for individuals aged 20 and above but have not yet reached the age of 30 between 2017 – 2018. (From the FAQs)

If I put in RM10000 , can I get RM10000 incentive?

No, the incentive is only RM1000 per person.

What documents do I need to bring?

Just bring your IC!


To read more Frequently Asked Questions about the PRS Youth Incentive, click here. If you haven't applied for PRS, do so quickly before the programme ends and you lose out on the youth incentive! Money is already allocated in the budget of the programme, all you have to do is apply.

If you want to read more about my personal finance post, click here.