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Private Retirement Scheme (PRS)
The PRS is a voluntary long-term retirement savings plan available to all individuals—employed, self-employed, or otherwise. Contributors enjoy tax relief of up to RM3,000 per year, extended until YA 2030, though returns are market-based and not guaranteed. Withdrawals before age 55 from Sub-Account B are subject to an 8% withholding tax, except for predesignated purposes like housing, healthcare, permanent departure, serious illness, disability, or death. Full withdrawals post-55 are permitted without penalty.
EPF i-Saraan
i-Saraan enables self-employed individuals to contribute voluntarily to EPF. Contributors benefit from EPF dividends, a death benefit, and an enhanced government matching incentive rate of 20%, capped at RM500 per year and a lifetime maximum of RM5,000, effective 1 January 2025. Tax relief up to RM4,000 is also available under personal relief.
PRS vs EPF i-Saraan comparison
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PRS |
EPF i-Saraan |
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