THE freshly launched TN50 PRS Youth is off to a good start, with the Private Pension Administrator Malaysia (PPA) participating in a roadshow at Universiti Tunku Abdul Rahman (Utar) as part of its financial literacy programme to engage youths on the importance of retirement planning.
Dozens of students as young as 18 kick-started their retirement savings by signing up with the Private Retirement Schemes (PRS) at Utar’s Sungai Long campus.
Six PRS providers – Affin Hwang Asset Management Bhd, AIA Pension and Asset Management Sdn Bhd, AmFunds Management Bhd, CIMB-Principal Asset Management Bhd, Kenanga Investors Bhd and Public Mutual Bhd – were part of the roadshow and gave away RM500 worth of PRS units to 19 students.
PPA chief executive officer Husaini Hussin said the event offered a preview of PPA’s TN50 PRS Youth 2018 programmes.
“As central administrator of PRS, we must be proactive and take the lead.
“To reach out to more youths this year, we will be developing more programmes in collaboration with local universities, starting with Utar,” he said.
Last month, Youth and Sports Minister Khairy Jamaluddin had launched the partnership to include PRS under the National Transformation 2050’s (TN50) agenda to encourage Malaysian youth to build their savings for the future.
Husaini, who addressed around 150 Utar students and staff at the roadshow, encouraged them to start saving early to benefit from the power of compounded growth.
“Your savings could grow in the long term. Some people will think that it is too early to save for their retirement, but there is no such thing as being too early. It is best to have a longer period to save,” he said.
Many youths are beginning to understand the concept and importance of long-term savings, with almost one-third of PRS members being below 31.
Under the TN50 PRS Youth incentive, those between the age of 20 and 30 who save RM1,000 in PRS will receive a one-off RM1,000 from the Government. This one-off incentive is available until Dec 31, 2018.
“This is a really good incentive as it kick-starts the retirement savings of youths,” said Husaini.
The roadshow was organised by Utar’s Sustainable Development and Corporate Social Responsibility in Business Centre.
Its chairman, Asst Prof Dr Mohammad Falahat Nejad-mahani, said the students enjoyed the session as they learnt how to manage their finances.
“Having a strong grasp of financial literacy will definitely take them a long way in life,” he added.
Husaini shared insights into retirement savings as well as demonstrated how to use PPA’s retirement calculator, which allows them to project the savings needed to sustain their lifestyle through their golden years.
He also introduced PRS Online Enrolment, which allows Malaysians to sign up for a PRS account directly via www.ppa.my in an easy, convenient and secure manner.