PETALING JAYA: Despite the challenging economy, a number of millennials in Malaysia have found ways to start saving with private retirement schemes (PRS).
Lim Yi Ding, 31, signed up for a PRS account when she was 28 and has tried to top up her investment every year.
“It is my dream to achieve financial freedom and if possible, retire early and travel around the world,” said the bank officer, adding that working in a bank had also helped raise her financial literacy.
Lim said she was encouraged to sign up for PRS since contributors were able to claim a tax relief of up to RM3,000 when filing tax returns.
“Also, my dad has always stressed on the importance of saving up and having investments since I was young,” she said.
Lim added that she hoped more youths will also consider planning ahead for their future by investing in PRS and insurance.
Another PRS member, who wished to be known only as Maisurah, said it was important to diversify one’s savings and not put “all your eggs into one basket”.
“I would recommend others to try investing in PRS. It is better than having no savings at all.
“There is also a fee if withdrawals are made before you turn 55, which will help ensure you have enough savings when you are older,” said the 30-year-old internal communications executive, who started investing in PRS three years ago.
Operations executive Max Tang, 31 said he has two PRS accounts but admitted it can be tough to regularly add on savings, especially with the uncertain economy.
“I suppose it will be beneficial in the long run. But for now, I think I would prefer to have more disposable income,” he said, adding that he started investing in PRS four years ago.
Other young Malaysians are also thinking about signing up for such schemes.
Engineer Teh Eng Khim, 25, said his interest in investing in PRS was further prompted by the Government’s PRS Youth Incentive Scheme.
“I don’t think it is particularly challenging to set aside some money to be invested in PRS.
“It is rather low risk and probably has better returns than keeping money in the bank.
“Besides, it’s always good to have a savings plan, just in case certain things in life don’t go your way,” he said.
Millennials planning from now for their sunset years