Private Retirement Scheme (PRS) Youth Incentive

What is Private Retirement Scheme (PRS) Youth Incentive?

In the 2014 Budget tabled on 25 October 2013, the Prime Minister had announced youth incentive of RM500 to contributors who participate in the PRS scheme to inculcate the importance of saving from an early age to ensure sufficient savings after retirement. The RM500 is a one-off contribution by the Government to young PRS members to encourage youth to undertake long-term savings for retirement through the PRS. This incentive will be made available for a period of 5 years from 2014 to 2018.

Are you eligible for the Youth Incentive?

• Individuals must be Malaysian nationals.
• Individuals may be existing PPA account holders or new Members.
• Individuals must be aged 20 and above but have not yet reached the age of 31 within any calendar year, between 2014 - 2018 in a single PRS fund of a Provider.
• Gross contributions within the calendar year reaches RM1,000. Once the gross contributions have reached RM1,000 and the member has met the necessary conditions, PPA will notify the Government to release the incentive to be credited to the PRS fund.

When and how I will received the RM500 Incentive?

• The RM500 is a one-off incentive and qualified individuals will only receive it ONCE for the entire period between 2014 to 2018 and not once every year.
• Once individual is eligible, RM500 incentive will be utilized to purchase units which will then be created in sub-account A of the PRS fund that the Member has contributed the RM1,000.The number of units the Member would receive would depend on the NAV per unit of the PRS fund.
• Individuals DO NOT need to apply for the incentive and no documentation is required from the Member in order to receive the incentive. 
• Once eligible, the incentive will be automatically credited into the Member’s sub-account A of the PRS fund.

Is the RM500 incentive entitle for tax relief?

The one-off incentive of RM500 from the Government to qualified contributors is NOT eligible for the annual RM3,000 tax relief claim as it was not made by the member in his individual capacity.

Contact Me

Should you have more enquiries about Affin Hwang, AIA, AM, CIMB, KENANGE, MANULIFE and RHB PRS funds details, you may contact me 012-9181589 or email finlifecare@gmail.com.

Alternatively, you may visit official PPA’s website at www.ppa.my