Kanasai why I saw this so late.
Next year I will not top up my PRS.
Instead of buying PRS, I think Great Retirement Plan is better.
Great Retirement Plan was designed to meet the required criteria of a deferred annuity plan to qualify for the new tax relief of RM3,000 announced in the 2012 Budget Speech. The tax relief, which will apply from the year of assessment 2012 to 2021, has been provided by the government to help the Malaysian public to start a supplementary retirement fund. The launch was timely as it provides the tax-paying public to immediately enjoy the tax relief before the close of the year 2012.
Annuity product is fairly new in the Malaysian market, unlike the more readily available life insurance product. While life insurance product has its core benefit focus on death benefit, annuity product is the complete opposite, with its benefit focusing purely on survival benefit.
“To this end, our fully guaranteed plan will help accelerate the educational process as there is no
variable or uncertainty that will complicate the public acceptance. Our customers can be assured that their retirement income will not be affected regardless of market conditions at the time of their
retirement. The total guaranteed benefits are dependent on your age at entry and the period of
accumulation. As a simple example, a 35 year employee whom contributes RM3,000 for 10 years is fully guaranteed to enjoy a total benefit of RM65,475 after the retirement age of 55, paid in equal
annual income over 15 years. That is more than double the total capital outlay of RM30,000.
Additionally, if your tax bracket is in the 19% range, you will enjoy an annual tax savings of RM570 for the next 10 years which total up to RM5,700. Of course, the higher is your tax bracket, the higher is your savings,”
2 comments
say we get our own retirement plan in malaysia. Our EPF is not enough. Unless you can make sure you have great cash cow or successful business by your retirement age, if not, start having a plan to force you save and grow on its own.