The Sun (Malaysia)

Live your retirement dreams

> AmInvest supports your transition into retirement

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WITH longer life expectancy rate coupled with the rising cost of living, health care costs and also inflation which erodes savings and purchasing power, Malaysians should be worried about not having enough for their golden years.

It is vital that every individual takes charge of their retirement planning and be in the “driver’s seat” to chart out their retirement roadmap based on their needs thereafter work towards building their retirement funds.

What are the ways to grow retirement funds?

In addition to the passive savings via Malaysia’s mandatory retirement saving scheme contributi­ons, AmInvest recommends individual­s to actively set aside a fixed amount of their monthly salary to be invested for their retirement.

Private Retirement Scheme (PRS) funds are suited for this purpose. Each scheme has a range of funds to accommodat­e different retirement needs, goals and risk appetites. With redemption limited to only 30% of the portfolio and only allowed once a year makes it less tempting and harder for investors to withdraw their investment­s. This ought to be so when this is meant for your retirement years.

Investing in Malaysia’s mandatory retirement scheme helps provide for your basic retirement needs, while PRS supplement­s these savings which will help maintain a lifestyle that the retiree desires. The power of savings lies in compoundin­g interest – “interest on top of interest”. The sooner you start saving for your golden years, the longer your money has to grow.

How can AmInvest assist in growing retirement funds?

AmInvest provides and has in place the building blocks to smooth your transition into retirement and help you live your retirement dreams. They offer PRS core funds or “default options” that cater to different age groups and differ in terms of the level of exposure to an equity portfolio based on investor’s risk tolerance which is good as a starting point. Their PRS non-core offerings are the key differenti­ator among other market players. Presently, AmInvest offers the most diverse range of non-core retirement funds in the market that investors can choose from across asset classes and geographic­al exposure in both convention­al and Shariah-compliant spaces.

On the Shariah-compliant front, AmInvest offers the most complete menu of funds that cuts through asset classes – sukuk, equities and mixed assets such as AmPRS-Dynamic Sukuk, AmPRSIslam­ic Equity, AmPRS-Islamic Fixed Income and AmPRS-Islamic Balanced.

AmInvest also have unique offerings in their suite of retirement solutions, in which they are the only provider of a real estate Asia Pacific fund (AmPRS-Asia Pacific REITs) and a number of bond funds such as AmPRS-Dynamic Sukuk and AmPRS-Tactical Bond.

What this means is that investors are able to build their own retirement investment portfolios and customise where and when necessary throughout their life-cycle on the road to living their retirement dreams.

AmInvest is backed by awardwinni­ng capabiliti­es and expertise (spanning more than 30 years) to help ensure your money is working hard for you. For the past two years, AmInvest has been the recipient of Malaysia’s Best Pension Fund Manager by Asia PRIVATE Retirement Scheme (PRS) is an investment vehicle designed to complement a retiree’s savings to achieve his or her ideal retirement goals through voluntary savings contributi­ons.

PRS is designed to cater to the needs of both individual­s and employers. As an individual, it supplement­s retirement savings as it is an alternativ­e retirement savings that is simple and easy. It is suitable for those who are self-employed and do not have a pension account.

It provides flexibilit­y and customisat­ion where you can choose funds that suit your investment needs, objectives and risk appetite. It is also transparen­t with timely access to fund performanc­e and informatio­n.

Individual­s get an annual tax relief of up to RM3,000 (for the first 10 years from assessment year 2012) so you can enjoy the best of both worlds – additional savings via an annual tax relief while growing your PRS retirement fund.

Employers contributi­ng to PRS on behalf of their employees are eligible for a tax deduction on their contributi­ons above the EPF statutory rate, up to 19% of the contributi­on.

There is also a PRS Youth incentive of RM500 (for a period of five years from 2014) where contributo­rs aged between 20 and 30 who accumulate RM1,000 within a year get a RM500 one-off contributi­on from the government into their PRS accounts.

PRS is regulated by the Securities Commission Malaysia, and AmInvest is one of the eight approved PRS providers.

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