Personal Finance Term
PRS
Private Retirement Scheme
A voluntary, long-term investment scheme in Malaysia designed to help you save more for retirement on top of your EPF. Contributions can qualify for a personal income tax relief, subject to the prevailing limit.
PRS is a government-supported framework of approved retirement funds run by licensed providers, letting you invest voluntarily for retirement alongside your mandatory EPF savings. You choose funds based on your risk appetite, and your money is invested in a mix of assets that you can leave to grow until retirement age. Contributions to PRS qualify for a personal tax relief up to the limit set by LHDN, which is a meaningful incentive for taxpayers [VERIFY current relief amount].
Because PRS is built for retirement, withdrawing before the qualifying age generally incurs a tax penalty on the withdrawn amount, so it should be treated as long-term money. It suits people who have room to save beyond EPF and want both the potential investment growth and the tax relief. As with any invested fund, returns are not guaranteed and depend on the funds you pick and market performance, so it complements rather than replaces EPF and other retirement planning.