TNG Digital has announced a new feature under the GOfinance segment within its own TNG eWallet, called Principal Private Retirement Schemes (PRS). It’s a bit like what Maybank announced back in April for its own MAE app. But as the name for this one suggests, the only goal here is to save up for retirement rather than any other purpose.
The Principal PRS “are managed toward a particular target date year based on when the investor is expected to start withdrawing money from the port folio to support their retirement needs”. A minimum contribution of RM100 is required, but users will get investment options tailored to their individual retirement ages and goals.
Mentioned in the press release is the Target Date Funds (TDF), which was launched by Principal Asset Management Berhad back in 2022. The Principal PRS is essentially the same thing being integrated into the GOfinance hub of the TNG eWallet. As such, the fund will do something similar to the TDF, which starts off with more aggressive strategies, and slowly moves towards more risk-averse strategies as the investor ages.
To go with the RM100 minimum contribution, TNG Digital has said that PRS investments of RM100 or more before 31 December 2024 will be eligible for an additional reward of up to 8% per annum for 30 days. More broadly, the company says that “users can enjoy up to RM3,000 in tax relief”, up until the year 2030. You can find out more about this feature by heading to the FAQ page, and specifically Part 5 of said page, linked here.
