Talk to give insights into retirement planning

EVERYONE retires from their careers at some point but the question remains, how would you want to enjoy your retirement, and how do you plan to fund it?

We have read news reports of retirees running out of funds within a few years of retiring. Some people are delaying retirement, not because they want to, but because they do not have sufficient savings.

Yet, there are also many Malaysians who are enjoying their retirement comfortably. Their secret, which is an open one, is proper financial planning and strict financial discipline.

One savings channel that is becoming increasingly popular is the Private Retirement Schemes (PRS), which is a long-term voluntary savings and investment scheme designed for retirement.

Private Pension Administrator Malaysia (PPA), the central administrator of PRS, has constantly advocated for Malaysians to start saving early for retirement.

“If you haven’t started saving, start now. It is important to top up your PRS savings regularly, and as your income grows, increase the amount saved for retirement,” said PPA chief executive officer Husaini Hussin.

Husaini and CIMB Principal Asset Management (CPAM) chief executive officer Munirah Khairuddin will share some insights into retirement planning in a talk entitled “Top Up Your Life”.

Brought to you by PPA and CPAM, it will take place at 9am on Oct 7 in Menara Star, Petaling Jaya.

Participants will stand a chance to receive a RM500 contribution of PRS in units on the day of the talk.

PPA organised two similar sessions in July and August and was encouraged by the response.

Husaini said the Government had introduced some incentives to help Malaysians save more for their retirement through PRS.

To encourage youths to kick-start their retirement savings, the Government is offering the PRS Youth Incentive, where youths aged between 20 and 30 who save a total of RM1,000 in PRS before the end of 2018 will receive a one-off incentive of RM1,000.

All Malaysians who regularly save in PRS are also eligible for income tax relief of up to RM3,000 annually.

“We must keep in mind that our end-goal is to have adequate and sufficient savings for retirement, and not just for tax savings. Tax savings is the cherry on the cake, but first, we must bake the cake,” he said.

Husaini added that employers could also contribute to their employees’ PRS accounts, and enjoy a tax deduction of up to 19% of employees’ remuneration for the contributions.

“This will send a message that you are a caring employer who thinks of your employees’ financial well-being even after they retire, as the benefits will outlast their working years.

“Corporate PRS may help with talent attraction and retention, as well as a reward for employees,” Husaini said.

Source : The Star
Date: Tuesday, 3 Oct 2017