He says it is difficult for youths to save now but this is absolutely necessary to plan for their retirement.
KUALA LUMPUR: It’s difficult to save for your future but you absolutely must. This is the message to youths from Youth and Sports Minister Khairy Jamaluddin.
He said this during the launch of “TN50 PRS Youth Incentive”, a private retirement scheme (PRS) for the youths today.
The scheme is a collaboration by the Securities Commission and his ministry, through the Transformasi Nasional 2050 (TN50).
PRS is a voluntary retirement savings scheme that complements the mandatory contribution scheme of the Employees Provident Fund (EPF).
Khairy said that under this scheme, a contributor who invests at least RM1,000 in his PRS account in 2018, will have the amount matched by a maximum of RM1,000 by the government. It is only applicable to those aged 20-30.
“For young people, it’s not easy to invest because they are barely able to make ends meet.
“But even if it’s just a little bit, it’s something for your future because you will get better returns and the amount multiplies.
“It’s counter-intuitive for a young person to save, I know.
“It’s not easy to do because at the end of the month there is no more money … everything is finished,” he said during his speech at a TN50-PRS Youth event here today.
Khairy said Malaysia was moving towards an aging society by 2035 and described this situation as a “ticking time-bomb”.
“We won’t be a young society for very long. By 2035, we will have more 65-year-olds than 15-year-olds.
“We’ll become a society that lives longer. This is why we need to address the issue of savings for the future.
“This is why we have to promote PRS so we don’t have to only depend on our EPF that won’t last long after retirement.
“We hope more young people will take up the offer and open their accounts.”
Khairy said top students at the National Youth Training Institute (IKBN) stand to benefit even more from this initiative.
“Our top IKBN students will get RM1,000 from the ministry and another RM1,000 from the government, as a matching incentive.
“We will also put RM1,000 from the incentives won by young athletes at this year’s Commonwealth Games into their PRS account.”
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