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.
• Income earned by the Funds are tax exempted, including the Foreign Source Income (FSI) tax.
• Managed by Principal, a global investment and retirement leader with more than 142 years of financial expertise.

Additional benefits

• 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 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.
 

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.