Private Retirement Scheme (PRS) – Workers need to better plan retirement

KUALA LUMPUR: Employees need to better plan their retirement right f rom the age of 20 years, said VKA Wealth Planners Sdn Bhd Group managing director, Javern CH Lim.

He added most employees have difficulty in sustaining a comfortable life after retirement because they fail to plan their earnings to achieve their retirement goals.

“Employees should spend less than what they earn, and though it sounds simple, many people fail to do so.

“We should spend just 60 per cent of our income and set aside the balance for savings and investment purposes,” he said in his presentation at an exhibition on private retirement schemes (PRS) organised by the Security Commission (SC) yesterday.

The exhibition provides an opportunity for individuals to engage with PRS providers and gain insights on the range of schemes offered.

Lim said out of 13 million Employees Provident Fund contributors, only 7.37 per cent have savings of more than RM150,000 at their retirement age of 55 while 21.74 per cent only have RM50,000-RM150,000 and 70.89 per cent have less than RM50,000, highlighting the crucial need for employees to choose the right retirement plan.

VKA Wealth Planners Sdn Bhd is a financial planning firm licensed by the SC and Bank Negara, and offers a diverse range of personal and corporate financial planning services.—Bernama


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