What is PRS ?
Private Retirement Schemes (PRS) is a voluntary retirement scheme that lets you take the lead on boosting your total retirement savings. We’re finding that many people need help making sure they've saved enough money to enjoy the retirement they want.
Why PRS?
With technological advancements improving longevity, chances are you’ll live longer in retirement. Hence, it’s essential to have multiple sources of income to rely on for your retirement. The earlier you start, planning and investing for retirement - the more impact you can have on your total retirement picture and reap these benefits:
| Chargeable Income (RM) | Tax Bracket (%) | Tax Savings (RM) |
|---|---|---|
| 0 - 5,000 | 0 | 0 |
| 5,001 - 20,000 | 1 | 30 |
| 20,001 - 35,000 | 3 | 90 |
| 35,001 - 50,000 | 6 | 180 |
| 50,001 - 70,000 | 11 | 330 |
| 70,001 - 100,000 | 19 | 570 |
| 100,001 - 400,000 | 25 | 750 |
| 400,001 - 600,000 | 26 | 780 |
| 600,001 - 2,000,000 | 28 | 840 |
| Exceeding 2,000,000 | 30 | 900 |
Source: Inland Revenue Board Income Tax Rates for Assessment Year 2023
You can start your PRS savings by choosing one of the investment option below
Do-It-For-Me (Default Option)
Your contribution will be allocated automatically into one of the Core Funds based on your year of birth . This is the best choice if you are unsure which fund suits you the most as it is an easy and seamless end-to-end retirement solution.
Do-It-Myself
You can contribute by selecting any one or a combination of the funds of your choice based on your preferred risk and return profile
How Much Do You Need to Save for Retirement?
Use this calculator from Private Pension Administrator's to find out.
Fund options under Principal PRS
Principal RetireEasy Income 
Principal RetireEasy 2060
Principal RetireEasy 2050
Principal RetireEasy 2040
Principal RetireEasy 2030
Principal PRS Plus Moderate
Principal PRS Plus Growth
Principal PRS Plus Equity
Principal PRS Plus Conservative
Principal PRS Plus Asia Pacific Ex Japan Equity
Principal Islamic RetireEasy Income
Principal Islamic RetireEasy 2060
Principal Islamic RetireEasy 2050
Principal Islamic RetireEasy 2040
Principal Islamic RetireEasy 2030
Principal Islamic PRS Plus Moderate
Principal Islamic PRS Plus Growth
Principal Islamic PRS Plus Equity
Principal Islamic PRS Plus Conservative
Principal Islamic PRS Plus Asia Pacific Ex Japan Equity
What to do next?
- Want to know more about PRS? Just leave your details here
- Alternatively, you can connect with our Customer Care Centre via the "Let's Chat!" (can be found at the bottom right).
General Private Retirement Scheme (PRS) Information
1. What should you know about the Private Retirement Scheme (PRS)?
The private retirement scheme ("PRS") is introduced to encourage retirement savings.
- It is a new way to boost retirement savings. The PRS is a voluntary scheme for all individuals who are 18 years old and above. It is an additional way to boost total retirement savings, whether you are an Employees Provident Fund ("EPF") member or not. If you are an EPF member, the PRS can complement your EPF savings.
- It enables you to enjoy additional tax savings. You can enjoy up to RM3,000 per year personal tax relief* on top of the RM6,000 per year tax relief for the mandatory retirement savings contribution and life insurance premiums. This could be as much as RM840 per year (depending on your tax bracket).
*For contributions into the PRS and deferred annuities effective from years of assessment 2012 to 2025.
2. What are the key differences between the Employees Provident Fund (EPF) and the PRS?
- With the exception of certain categories, all employees under a contract of service are required to contribute to the EPF. By contrast, the PRS is a voluntary scheme for individuals who are 18 years old and above.
- The EPF, which comes under the purview of the Ministry of Finance, has to maintain a minimum guaranteed return of 2.5% annually to its depositors. On the other hand, the PRS managed by the private financial intermediaries approved by the Securities Commission Malaysia ("SC") does not provide a guaranteed return.
- All PRS contributions are separate and do not affect your mandatory EPF contributions. Your mandatory EPF contributions (both your own personal deductions and also your employer's contribution) will remain the same.
3. Who is eligible to participate in the PRS?
Individuals who are 18 years of age and above (both Malaysians and foreigners*) are eligible to sign up for the scheme and participation is on a voluntary basis. Employers may also opt to contribute on behalf of employees.
*Note that any permanent resident of the USA (including US citizen residing in Malaysia) is not allowed to participate in Principal PRS Plus and Principal Islamic PRS Plus.
4. What is the Private Pension Administrator (PPA) and its functions?
Regulated by the SC, the Private Pension Administrator ("PPA") aims to promote efficiency and convenience to the PRS members through its functions, which include:
- To provide a one-stop administrative framework for the growth and operation of the PRS landscape.
- To facilitate all the inquiries and transactions requested by the members.
- To provide the PRS related information in order to create awareness and educate the public on the PRS.
5. What are the funds offered by Principal?
| Principal PRS Plus | Principal Islamic PRS Plus |
| Principal RetireEasy Income | Principal Islamic RetireEasy Income |
| Principal PRS Plus Conservative | Principal Islamic PRS Plus Conservative |
| Principal PRS Plus Moderate | Principal Islamic PRS Plus Moderate |
| Principal PRS Plus Growth | Principal Islamic PRS Plus Growth |
| Principal PRS Plus Equity | Principal Islamic PRS Plus Equity |
| Principal PRS Plus Asia Pacific Ex-Japan Equity | Principal Islamic PRS Plus Asia Pacific Ex-Japan Equity |
Disclaimer
Investing involves risk and cost. You should read the relevant Prospectus, and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) before Investing. You should understand the risks involved, compare and consider the fees, charges and costs involved, make your own risk assessment and seek professional advice, where necessary. Securities Commission Malaysia does not review advertisements produced by Principal. For full disclaimer, please visit "https://www.principal.com.my/en/bit.ly/Principal-PRS-Disclaimer"