Private Retirement Schemes (PRS) are voluntary long-term savings vehicles that supplement EPF, offering tax relief and investment flexibility. With RM3,000 annual tax relief and a government incentive for young investors, PRS provides attractive retirement savings benefits for the right investor.
PRS Key Benefits 2026
| Benefit | Details |
|---|---|
| Annual Tax Relief | RM3,000 per year on PRS contributions |
| Youth Incentive | RM1,000 government contribution (ages 20–30, one-time) |
| Tax Saving (19% bracket) | RM570/year from RM3,000 contribution |
| Sub-Account A | 70% of contributions — locked until age 55 |
| Sub-Account B | 30% of contributions — withdrawal anytime (8% tax penalty) |
PRS vs EPF: Key Differences
EPF: mandatory (employees), guaranteed 5.5% dividend, cannot access until 55 (except special purposes). PRS: voluntary, market-linked returns (3%–12% depending on fund), more flexible fund choice, partially accessible (Sub-B with penalty). PRS complements EPF — they are not substitutes.
Best PRS Funds in Malaysia 2026
Evaluate PRS funds by: 5-year annualised return, annual management fee (target below 1.5%), fund type (equity for long horizon, balanced for 10–20 years, conservative for near-retirement). Top performers by 5-year return: Manulife Growth, Principal DALI (Islamic), Kenanga Growth, and Public Mutual Islamic funds.
PRS Withdrawal Rules
Sub-Account A (70%): no pre-55 withdrawal except terminal illness, death, permanent departure from Malaysia. Sub-Account B (30%): withdrawable at any time with an 8% withholding tax. From age 55: full withdrawal from both accounts tax-free.
Model PRS combined with EPF retirement projections using our 🎯 Retirement Calculator.