PRS Youth Incentive

 

Private Retirement Scheme (PRS) Youth Incentive

Saving early encourages better compounding returns upon retirement. In Budget 2014, the government introduced the PRS Youth Incentive as part of its efforts to help Malaysian youths between the ages of 20-30 years to build a secure financial future. This initiative is designed to give young people a solid start to their retirement savings.

The government initially offered a one-off contribution of RM500, which was later enhanced in Budget 2017 to RM1,000. The PRS Youth Incentive is available to eligible youth and is a great opportunity for those looking to get ahead with their retirement planning.

📅 Key Dates

The incentive was effective from 1 January 2014 and was available for a period of five years, ending in 2018.

✅ How to Qualify?

You will receive the one-off RM1,000 contribution when you make a gross contribution of RM1,000. Here’s how to qualify:

  • 📌 You must be a Malaysian youth aged between 20 and 30 years (not yet 31 years old).
  • 📅 The gross contribution of RM1,000 must be made within one calendar year.
  • 💼 The contribution must be made within the period of years 2017 to 2018.
  • 🔒 The contribution must be in a single PRS fund of a provider.

📝 Additional Information

  • ✔️ Contributions can be made as a lump sum or monthly saving within the calendar year.
  • ✔️ The RM1,000 incentive will be reinvested into the fund to help grow your savings.
  • ✔️ If you contribute to multiple PRS funds, the incentive will be allocated to the fund that reaches the gross contribution of RM1,000 first.

Note: The PRS Youth Incentive program ended on 31 December 2018.

The PRS Youth Incentive is a great way for young Malaysians to kickstart their retirement savings and make the most of compound returns over time. Even though the program has ended, it’s never too early to start planning for your future!

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