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Monday, May 16, 2016

Get FREE RM500 From Government Thru PRS Youth Incentive!

Private Retirement Scheme (PRS) Youth Incentive is a youth incentive of RM500 to contributors who participate in the PRS scheme. The RM500 is a one-off contribution by the Government to young PRS members to encourage youth to start investing in their retirement through the PRS. 

Government has budgeted a total of RM210million in Budget 2014, which, will contribute RM500 per qualified person to be used to purchase units of PRS funds in the PRS account of youths, whom have accumulated a minimum gross contribution amount of RM1,000 within a year. This incentive will be made available for a period of 5 years from 2014 to 2018. But up to date there are only ~8% that has been payout from the RM210million! 

Malaysian Youth are not aware or it is not attractive?

So if you are aged 20 and above but yet to reach the age of 31, read on! 

Are you qualified?
- Must be Malaysian
- Must be aged 20 and above but have not yet reached the age of 31
- Gross contributions within the calendar year reaches RM1,000

How to start?
- Lump sum of RM1,000 into any PRS fund
- Regular monthly contribution (Invest in PRS as low as RM100)
- Parent contributing to Youth

How to apply for incentive?
You do not have to apply for the incentive. PPA will monitor the eligible accounts and compile a listing of those qualified and notify the Government of the individuals eligible for the incentive. A report is compiled by PPA bi-annually, in order for the pay-out to be made to the qualified individuals automatically.

When will I received the incentive?
The once-off RM500 will be automatically credited into the sub-account A of your qualified PRS Fund once you have met the necessary requirements. PPA will notify you once the Incentive pay-out has been made into your qualified PRS Fund in the form of units.

Can I withdraw the incentive?
As the full RM500 will be utilized to purchase units which will then be created in sub-account A, this incentive is therefore not available for pre-retirement withdrawal.

Is the RM500 incentive eligible 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 the contribution was not made by the PRS Member in his individual capacity.

I am interested, what should I do now?
Comment below and #YourFinanceDoctor will contact you right away! 

Earn, Save, Invest, Repeat!
Happy Investing!

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