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Is PRS better than EPF?

Is PRS better than EPF? Should you invest in PRS since you already have EPF?

Have you ever met the good looking brother, and the other good looking step brother?

Well, the situation between EPF and PRS are similar. Both are equally important.

Most importantly, you can maximise your tax relief via EPF and PRS at the same time, especially if you’re self-employed. You must not neglect your own retirement just because you’re running your own show. You can’t work forever, right?

Here’s how you could have both:

EPF

  • Contribute via your monthly salary deduction (it’s a mandatory statutory deduction to be done by your employer)
  • For those who are self-employed, you’re still allowed to open up your own EPF account, just visit any EPF office to get it done. Opt in for i-Saraan as the government will match your contribution if you fulfil the requirement. Read here for more info
  • Whether you’re employed or self-employed, the allowable tax relief is RM4,000 maximum in a calendar year

PRS

  • You could invest in PRS via the following fund houses: Kenanga, AIA, Manulife, Affin Hwang, Principal, RHB, AmInvest, Public Mutual
  • The allowable tax relief is RM3,000 in a calendar year, available til year 2025. The government is known to extend the programme so maximise this opportunity while it’s still accessible

For more elaborated explanation on EPF and PRS, check out my YouTube video below, is PRS better than EPF?

 

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