5 Awesome Benefits You Can Receive When You Sign Up For PRS If You're Self-Employed
How much and how often you want to save is all up to you!
By Jeremy Ng — 26 Nov 2019, 03:08 PM
Are you part of the gig economy or running your own business? While it may seem like a long time away, it's important that you start saving for retirement early on.
If you're not sure how much to save, PPA recommends that you set aside one-third of your income every month into a retirement fund. Getting into this habit is important if you're self-employed, since you don't have a safety net of a pension or mandatory scheme.
Nevertheless, it can still be struggle to save a fixed amount each month if your income fluctuates from month to month. This is where Private Retirement Schemes (PRS) would work for you, especially if you are your own boss!
Here's why it is important (and super easy) for self-employed Malaysians to start saving with Private Retirement Schemes (PRS):
1. You can enjoy a tax incentive and get money back on your taxes!
When you make contributions to your PRS funds, you're allowed to claim tax relief of up to RM3,000 by the Inland Revenue Board of Malaysia. To find out how much tax savings you can get, check out this table on their website.
2. You can choose how much and how often you want to save
The great thing about PRS is that you don't have to contribute a fixed amount every month. It's completely up to you when and how much you want to save, which is perfect for self-employed professionals. Nevertheless, it's recommended that you save an average of 33% of your income every month.
3. It's a hassle-free experience since you can do everything online
You can enrol, top-up and review your funds online. There are also all kinds of online tools like retirement calculators and e-learning resources to help you make the most of your retirement savings.
For instance, you can compare the funds using the PRS fund performance table. It's also a great place to start if you're not sure what funds to invest in.
4. You could stand a chance to receive up to RM3,000 in PRS units with the PRS Online Treats campaign if you sign up by 30 November 2019
You can join the PRS Online Enrolment Treats Contest in just two steps:
1. Sign up for a PRS account via PRS Online Enrolment by PPA Malaysia
2. Answer three simple questions
Once completed, you'll automatically be in the running to get a PRS Treat worth RM100 in PRS units in the Monthly Draw. Plus, you'll stand a chance to enter the grand prize draw worth RM3,000 in PRS units!
5. You can potentially enjoy the benefits of long-term compounded growth
The main reason why it's good to start saving for retirement early is so that you give your money time to grow. Plus, saving regularly (whether it's a little or more than usual) helps you to build a comfortable retirement fund in the long run.
Ready to start saving for the future? Get started with Private Retirement Schemes (PRS) today!
Find out how you can make your money work for you on the PPA's website.
