With the recent Budget 2025 announcement, the Malaysian government has extended tax relief on contributions to Private Retirement Schemes (PRS) and premium payments for deferred annuities until the tax assessment year 2030.
This means you can enjoy up to RM3,000 in tax relief annually for the next several years, making it the perfect time to start planning your retirement. One of the easiest ways to take advantage of these incentives is through Principal’s Retire, a feature within GOfinance on the Touch ’n Go eWallet app (TNG eWallet app).
Principal's Retire: Your Gateway to a Comfortable Retirement
The Principal’s Retire feature is designed to make retirement planning seamless for Malaysians. It incorporates the Target Date Funds, a unique and innovative investment solution that evolves with your retirement goals. Here’s how it works:
- What Are Target Date Funds?
Target Date Funds (TDF) are funds managed toward a specific target date. It is a hassle-free solution with an asset allocation glide path, which takes into account the investor’s age and expected year of retirement. When you are further away from retirement, the TDF will adopt a more aggressive investment strategy to maximize growth. As you progress nearer to the expected retirement date, the TDF will automatically and gradually adjust its investment mix to a more conservative one to suit your changing risk tolerance.
- Tax Incentives with PRS Funds:
Beyond the simplicity of TDF, you may also enjoy up to RM3,000 in personal tax relief annually when contributing to PRS funds, making Principal’s Retire a smart financial choice for retirement planning.
What sets Principal apart is that it’s the only PRS provider in Malaysia offering the TDF, a lifecycle-based fund with a tailored approach to meeting investor’s retirement age and goals.
To start investing in PRS with Principal through the TNG eWallet app, you only need to perform a one-time eKYC process for verification, then choose between Conventional or Shariah-compliant options and invest as little as RM100 in the Retire feature. The best part is, there is no need to download anything new, you can access this feature directly from your TNG eWallet app.
Laburia Promotion: Enjoy up to 8% p.a. in extra rewards alongside your retirement investments
To encourage Malaysians to take charge of their financial futures, the Laburia Campaign offers bonus rewards for investments made through the Principal’s Invest and Retire features in the Touch ’n Go eWallet:
- Promotion Period: From now to 31st December 2024
- Reward Structure:
- RM100 - RM30,000: Earn 5% p.a. bonus reward for 30 days.
- RM30,001 & above: Earn 8% p.a. bonus reward for 30 days.
- Eligibility: Entry is automatic for investments made via the Invest or Retire features.
With a minimum investment of RM100, this campaign offers an excellent incentive to start or expand your investment journey while maximizing your returns.
Why Choose Investment-Principal Through Touch ’n Go eWallet?
The Investment-Principal within the Touch ’n Go eWallet makes it a reliable choice for both novice and seasoned investors:
- Easy Access: No need to download a separate app. Everything is available under GOfinance within the Touch ’n Go eWallet.
- Simple Onboarding: Get started quickly with a hassle-free account setup and eKYC process.
- Trusted Partner: Backed by Principal, a global leader in asset management with over 140 years of expertise.
- Comprehensive Investment Options:
- Save: Goal-Based investment to help you achieve your financial goals through Money Market Fund.
- Invest: Access 21 diverse funds, including global and regional options, tailored to various investment goals and risk appetites. Whether you're aiming for aggressive growth or a balanced approach, there’s a fund to suit your needs.
- Retire: Invest for your future with PRS funds that offer personalized retirement savings solutions, enhanced by tax incentives and the simplicity of TDF.
How to Get Started?
Follow these simple steps to begin your investment journey:
- Launch the Touch ’n Go eWallet app.
- Click on “Grow Your Money”.
- Choose “Principal”
- Choose the “Invest” or “Retire” feature to start your investment journey. (New users will need to complete a quick onboarding process)
The combination of Principal’s Retire and the Laburia Campaign makes now the good time to start investing in your future. With exclusive tax incentives, user-friendly features, and bonus rewards, securing your retirement has never been easier or more rewarding.
Take the first step today. Visit your Touch ’n Go eWallet, explore Principal’s features, and enjoy the financial benefits of smart investment decisions. Remember, investment involves risks, so please read the disclaimer before investing.
Ready to plan your retirement? Start exploring now!
Disclaimer:
You are advised to read and understand the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) before Investing. Among others, you should consider the fees and charges involved. The registration of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) with the Securities Commission Malaysia (SC) does not amount to nor indicate that the SC recommends or endorses the funds. A copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) may be obtained at our offices, distributors or our website at www.principal.com.my. The issuance of any units to which the relevant Prospectus, Information Memorandum and/or Disclosure Document relates will only be made on receipt of an application referred to in and accompanying a copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document. Please be advised that investment in the relevant unit trust funds, wholesale funds and/ or private retirement scheme carry risk. An outline of the various risk involved are described in the relevant Prospectus, Information Memorandum and/or Disclosure Document. As an investor you should make your own risk assessment and seek professional advice, where necessary. Securities Commission Malaysia does not review advertisements produced by Principal.
