Your employer can help boost your retirement savings with PRS
KOTA KINABALU: Saving for your retirement is like running a marathon, in more ways than one.
First, it’s long term. You don’t stop running after 10km of a 42km route. Similarly, with retirement funds, you should continuously save until you have sufficient funds to see out your golden years.
Pacing is important as well. Nobody can sustain sprinting to the finish line. Otherwise, Usain Bolt would complete a marathon in one hour. For context, the current marathon world record holder is Eliud Kipchoge from Kenya, with a time of 2 hours, 1 minute and 39 seconds.
With our retirement savings, we need to pace as well – by saving regularly. Regardless of market conditions, it is advisable to save monthly in Private Retirement Schemes (PRS) to enjoy dollarcost averaging.
“It is the nature of the capital market to be volatile. There will be ups and downs. Like routes in marathons, there will be inclines and slopes. Coaches will tell you to keep pace while you’re running. Likewise, we want you to keep saving,” said Husaini Hussin, CEO of Private Pension Administrator Malaysia (PPA).
Husaini acknowledges that while it is simple, it is not necessarily easy for many to stay disciplined in saving for their retirement.
“Our advice is to save before you spend, especially when it comes to retirement savings. This is because many people delay saving for their retirement, thinking they have many more years to do so.
“The fact is that it is never too early to start. The earlier you start, the longer time horizon you have for your funds to enjoy compounded growth,” he said.
Unlike running a marathon, you can get help boosting your retirement savings. Through Corporate PRS, employers can contribute directly to their employees’ PRS accounts. They can also facilitate employees to save in PRS via payroll deduction.
“There are already about 600 companies participating in Corporate PRS. The benefits of Corporate PRS will outlast the working years of your employees. Reward them today, for their financial wellbeing tomorrow,” said Husaini, adding that participating employers enjoy tax deduction of up to 19%.
Themed “Save More for Your Future with PRS”, the event is jointly brought to you by PPA and RHB Asset Management Sdn Bhd and organized by See Hua Group, in collaboration with Kota Kinabalu Chinese Chamber of Commerce & Industry (KKCCCI). Featuring speakers from PPA and RHB Asset Management, participants can gain insights about retirement planning and saving more for their future. Members of the public and business owners are invited to join the event at Level 3, Multipurpose Hall, Wisma KKCCCI, Kota Kinabalu. During the talk, 10 participants will stand a chance to receive RM200 PRS Treats in units. Surprise gifts are also lined up for those who sign up for PRS during the session.
The previous session in Kuching on Sept 29 received positive response with many participants taking the opportunity to sign up for PRS on that day.
Those interested can register at http://gg.gg/shppa to book a seat. Entry is free, but limited to 200 seats on a first come, first served basis. For more details, call 088318811.