The Principal PRS decumulation solution - It enables you to customize your withdrawal and continue to grow your PRS for your post-retirement need. The Principal PRS decumulation solution comprises of 2 components:

• Regular Withdrawal Plan (RWP) 
  Let you custimise and schedule withdrawals based on your goals and cash flow needs.
   
• Funds
  The Principal RetireEasy Income (REI) and Principal Islamic RetireEasy Income (iREI) helps you to continue grow your PRS balances, so that it an prolong the sustainability of your account balance after retirement.

Regular Withdrawal Plan (RWP)

• Customization – You may customize and schedule the withdrawals based on your post-retirement cash flow need.
• Convenience – The withdrawal proceeds will be transferred automatically to your bank account.
• Ease of setting up – One-off application to schedule for multiple future withdrawals.

Principal RetireEasy Income or Principal Islamic RetireEasy Income (Funds) 

• Dedicated funds designed to suit retiree’s need
• Help investor to continuously grow their remaining fund balance while they withdraw from the Funds to support post-retirement needs.
• Choice of conventional or Islamic funds 
• Funds are unconstrained in asset allocation with global exposure
• Funds offer a controlled risk and return profile.
• Managed by Principal, a global investment and retirement leader with more than 142 years of financial expertise.

Additional benefits

• Income earned by the Funds are tax exempted, including the Foreign Source Income (FSI) tax.
• Tax benefit – You can enjoy personal tax relief of up to RM3,000 for contribution into PRS (effective from year of assessment 2012 to  2025). 
• Nomination – You can make nomination for the purpose of easy disbursement of your PRS balance in the event of your demise.
   

The Fund seeks to provide sustainable total return and to grow the total investment over the long term.

The Funds are unconstrained in terms of asset allocation and region exposure (i.e., no fixed allocation or weightage in underlying assets or country). The Funds are managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes or changes in market forces or Fund circumstances.

For Principal RetireEasy Income
Up to 100% of the Fund’s NAV may be invested in collective investment schemes (including exchange-traded funds (ETF) and real estate investment trusts (REITs), equities, debt securities, money market instruments and/or deposits. Notwithstanding,

• up to 40% of the Fund’s NAV may be invested in unrated debt securities; and
• up to 10% of the Fund’s NAV may be invested in unlisted securities.

For Principal Islamic RetireEasy Income:
Up to 100% of the Fund’s NAV may be invested in Islamic collective investment schemes (including Islamic exchange-traded funds (ETF) and Islamic real estate investment trusts (REITs), Shariah-compliant equities, Sukuk, Islamic money market instruments and/or Islamic deposits. Notwithstanding,

• up to 40% of the Fund’s NAV may be invested in Unrated Sukuk; and
• up to 10% of the Fund’s NAV may be invested in unlisted Shariah-compliant securities.

Currently, the Funds will seek exposure to the various asset classes by investing in CIS (including ETF and REITs) to achieve greater market exposure, diversification and for cost efficiency purposes. At any point in time in the future, the Funds may invest directly into the various asset classes it is deemed appropriate and at the Manager’s discretion.
 

The performance of the Funds cannot be compared directly with any specific publicly available benchmark. However, the Funds have the following target return:

For Principal RetireEasy Income:
4.0% - 5.0% per annum over rolling 5-year

For Principal Islamic RetireEasy Income:
3.5% - 4.5% per annum over rolling 5-year

Please note that the Funds’ benchmark is for performance comparison purpose only and the risk profile of the Funds is not the same as the risk profile of the benchmark. The target return above were set based on current market environment and asset allocation mix. As the Funds are a long-term fund, the return expectation may change accordingly should there be changes in the market environment and asset allocation mix at that point of time. Any changes to the benchmark will be reflected in the Product Highlights Sheet (PHS), which is available on our website at www.principal.com.my.
 

The Funds have a risk category of “Moderately Conservative”.

Given the Funds’ objective, the Funds are not expected to pay any distribution. Distributions, if any, are at our discretion and will vary from period to period depending on the performance of the Funds.

The Funds are managed by Principal Asset Management Berhad (Principal Malaysia).

Principal Malaysia has appointed Principal Global Investors, LLC (PGI) as the Sub-Manager of the Funds. The Sub-Manager specializes in the global multi asset investment strategies and will be responsible for the investment management function of the Funds in accordance with the Funds’ objective and within the investment parameters, restrictions, and limits of the Funds. All costs of this appointment will be borne by us to ensure no additional fee is levied on the Members.

The Funds are suitable for Members who:

• wants a decumulation solution that is straightforward and easy to understand.
• wants to invest in an Islamic fund that offers appropriate risk and return (i.e. moderately conservative) for retirees.
• wants a portfolio that invest in multi assets globally.
• have reached Retirement Age (i.e., 55 years old and above) and require a steady stream of income from enrolling in Regular Withdrawal Plan (RWP).

Under the Do-It-For-Me (Default Option), the Funds are selected for Member who are born on or before year 1967.
 

Yes. Subject to our absolute discretion, you have the option to switch your existing contributions into any of the Principal Malaysia’s PRS funds into the Funds.
 

You may view such details here. 

RWP allows Eligible Members to customize and schedule the withdrawal arrangement based on your post-retirement cash flow need. You may schedule to receive a pre-determined amount of withdrawal proceeds at your preferred frequency.
 

Members of the Principal RetireEasy Income & Principal Islamic RetireEasy Income (“Funds”) who are 55 years old and above (“Eligible Members”).
 

There are 2 Options available for selection:
Option 1:
Fixed Amount until proceeds depleted + RWP Frequency (monthly, quarterly, semi-annually or annually)

Option 2:
Fixed number of payment until proceeds depleted + RWP Frequency (monthly, Quarterly, semi-annually or annually) 

After the RWP is successfully enrolled, the RWP payment will be transferred automatically to your bank account on schedule.

Below is the illustration of the RWP for reference:
Illustration: Option 1 – Fixed Amount
Assumption
You have an account balance of RM100,000 and wish to withdraw RM1,000 monthly.
Account balance          : RM100,000
RWP amount               : RM1,000
Frequency                   : Monthly
Estimated fund return  : 4%*
RWP start date            : May 2022

Estimated Outcome
You may receive RM1,000 on a monthly basis starting from May 2022 until May 2032 (estimated a total of 121 RWP payments).

Illustration: Option 2 – Fixed No. of Payments
Assumption
You have an account balance of RM100,000 and wanted to receive 20 payments semi-annually.
Account balance         : RM100,000
RWP no. of payments : 20
Frequency                   : Semi-annually
Estimated fund return  : 4%*
RWP start date            : Aug 2022

Estimated Outcome
You may receive RM6,115.67 semi-annually over 20 payments starting from Aug 2022 until Feb 2032.

Note: This is an illustration only and does not constitute as the final outcome. The actual RWP payment amount (RM) and/or no. of payments may differ from the illustration as they are dependent on the actual data, which includes but not limited to your actual account balance, Fund performance etc.

*The fund return is shown for illustration purpose only. There is NO GUARANTEE on the investment which includes your investment capital and returns, nor any assurance that the fund’s investment objective will be achieved.

Your account must have sufficient balance to sustain for at least three (3) RWP payments. The RWP payment amount is calculated based on your account balance of the day we process the RWP application. The amount will be fixed throughout the tenure (except for final RWP payment, where it may differ depending on your remaining account balance.). 

However, please note that your RWP arrangement may be affected if you perform additional withdrawal from the Fund, i.e., the number of RWP payments may be reduced due to the decreased account balance. You are advised to review your RWP arrangement to ensure that it is always updated to match with your goals and needs.
 

Yes. The RWP is subject to the minimum withdrawal amount as disclosed in the Disclosure Document of the Funds.

Yes, you have the full flexibility to make additional withdrawals as you wish. Withdrawals can be made by completing the PRS Withdrawal Form and submit it to the relevant distributor or Principal’s head office.

Your RWP arrangement may be affected if you perform additional withdrawal from the Fund(s). You are advised to review your RWP arrangement to ensure that it is always updated to match with your goals and needs.
 

Yes, you may top up your contribution into the Funds by submitting the complete PRS Contribution Form to the relevant distributor or Principal’s head office. Otherwise, you may also perform top-up through the PPA PRS Members Portal at https://www.prsmember.my. 

You are advised to review your RWP arrangement if you perform any transaction (including top-up to the Funds) to ensure that it is always updated to match with your goals and needs.
 

You may apply by submitting the complete PRS Regular Withdrawal Plan Form to the relevant distributor or Principal’s head office.

The cut-off time for RWP related applications (i.e., enrollment, cancellation/ change of instruction) is by 12:00pm on the 10th calendar day of the month ("Cut-Off Time"). 

The relevant forms (i.e., PRS Regular Withdrawal Plan Form, PRS Change of Instruction Form) must be submitted to Principal by the Cut-Off Time immediately preceding the month you wish the RWP instructions to commence and/or take effect. 
 

If we received the form after the Cut-Off Time, you will be deemed to have submitted the form on the subsequent calendar month. The RWP instructions will only take effect in the subsequent month.

Applications before/on Cut-Off Time
Illustration 1
You want to enroll in RWP to withdraw RM5,000 annually. You have submitted the PRS Regular Withdrawal Plan Form to Principal on 9th May 2022, which is before the Cut-Off Time. As such, your first RWP payment will start in May 2022. 

Illustration 2
You want to change your RWP frequency from annually to monthly. You have submitted the Change of Instructions Form to Principal on 1st June 2022. As we have received the application before the Cut-Off Time, the revised instruction will take effect in June 2022, and you will expect the monthly RWP payment starting June 2022

Applications past Cut-Off Time
Illustration 1
You want to enroll in RWP to withdraw RM1,000 monthly. You have submitted the PRS Regular Withdrawal Plan Form to Principal on 15th May 2022, which is after the Cut-Off Time. As such, your first RWP payment will only start in June 2022. 

Illustration 2
You want to change your RWP frequency from quarterly to monthly. You have submitted the Change of Instructions Form to Principal on 22nd June 2022. As it has past the Cut-Off Time, the revised instruction will only take effect in the following month, i.e., June 2022, and you will only expect the monthly RWP payment starting July 2022.

Only one (1) RWP can be set-up for each Fund at any point in time.

Yes, you may change your RWP arrangement to suit your current need. Simply complete the PRS Change of Instructions Form and submit the same to the relevant distributor or Principal’s head office.

The updated RWP instruction will be processed as new application and replace the existing RWP arrangement. The completed form must be received by us by the Cut-Off Time immediately preceding the month you wish the revised RWP arrangement to take effect. If we received the form after Cut-Off Time, you will be deemed to have submitted the form on the subsequent calendar month.
 

Currently, Principal do not charge any fees or charges on RWP arrangement. However, any applicable bank charges and other bank fees incurred as a result of RWP withdrawal by way of telegraphic transfer or other special payment method will be charged to you.
 

A confirmation advice will be sent to you 

• within three (3) business days upon successful RWP application/ cancellation.
• within fourteen (14) days after RWP payment is made to your account. 

You may also view your latest RWP status in Principal Online at https://online.principal.com.my.   

a. The RWP will be terminated automatically if:

• Your fund account is zeroized (e.g., upon completion of RWP, you performed full withdrawal from account etc.); and/or
• after six (6) failed remittance transactions.

b. If your account balance falls below the minimum withdrawal amount as disclosed in the Disclosure Document of the Funds, the remaining proceeds in your account may be withdrawn automatically and we will return all proceeds to you.