PRS fund contributors can enjoy tax relief of up to RM3,000 per year, with tax relief valid until 2025.
EVERYONE wants to retire comfortably. However, it would be difficult to enjoy your golden years without any worries if you do not have sufficient funds to support yourself during retirement.
While many are complacent with their retirement savings that have been set aside through their mandatory retirement contribution, it may not be enough to sustain you throughout your retirement years. Moreover, you may even find it difficult to earn an income to replenish your savings and cover any shortfalls once you have retired. Therefore, you need to save and invest to generate multiple sources of income during retirement.
The following are some other reasons why you should take steps to bolster your retirement fund today.
1. Long-term sustainability
Malaysians have a rising life expectancy, thanks to medical advancements, and this means that you will need to support yourself for a longer retirement period. At the same time, healthcare costs are escalating, which can lead to increased costs in retirement. As such, you need to take these factors into consideration when planning for your retirement.
2. Be self-reliant
As family sizes may have become smaller nowadays, it will take a lot more for children to support their parents during their retirement. You do not have to be a financial burden on your loved ones, especially as your children may have their own family to support, when you are able to generate your own income through your savings and investments.
3. Manage the impact of inflation
Inflation will erode your retirement fund as the value of your money today will not be the same in the future. By having a diversified savings and investment portfolio, you may hedge against the effects of inflation to protect your retirement fund.
To supplement your retirement savings for your future self, you may consider contributing into private retirement scheme (PRS) funds. Apart from building an additional income stream, you can also enjoy up to RM3,000 tax relief per year until 2025 and have peace of mind as your money in PRS will be protected from creditors.
Find out more about Public Mutual PRS funds at www.publicmutual.com.my
This article is prepared solely for educational and awareness purposes and should not be construed as an offer or a solicitation of an offer to purchase or subscribe to products offered by Public Mutual. No representation or warranty is made by Public Mutual, nor is there acceptance of any responsibility or liability as to the accuracy, completeness or correctness of the information contained herein.
