Retirement savers to benefit from PRS tax relief extension

"For PRS members who have not maximised their tax relief for 2020, they can also top up their PRS accounts anytime, anywhere with the PRS Online application," it said.

KUALA LUMPUR: The Private Pension Administrator Malaysia (PPA) said the extension of the Private Retirement Schemes (PRS) tax relief of up to RM3,000 per year until 2025 is a positive move by the government that views the people’s preparedness towards their retirement wellbeing as a national priority.

In a statement on Friday, PPA chairman Datuk Zaiton Mohd Hassan said the PRS tax relief given to individuals who saved in the voluntary scheme had proven to be effective in encouraging Malaysians to save more for their retirement.

"The extension, announced under Budget 2021, is a positive move as the government that views the rakyat’s preparedness towards their retirement wellbeing as a national priority, especially during this challenging time,” she said.

The administrator said close to half a million PRS members have collectively saved RM4.4 billion in net asset value.

"For PRS members who have not maximised their tax relief for 2020, they can also top up their PRS accounts anytime, anywhere with the PRS Online application," it said.

Additionally, first-time savers stand a chance to boost their retirement savings further through PPA’s ‘Jom PRS, Get Treats!’ contest, where monthly draws and prizes worth up to RM30,000 in units are up for grabs, from now until Dec 14, 2020.

"Despite a challenging year caused by the Covid-19 pandemic, the PRS industry remains resilient.

"Due to physical distancing practices, PPA has adapted most of its financial education initiatives online to reach a wide audience," it added. - Bernama