Advisonomics has inked a Memorandum of Understanding (MoU) with Private Pension Administrator Malaysia (PPA) to facilitate member contributions towards the Private Retirement Scheme (PRS).
This MoU will pave the way for Malaysians to digitally set up a PRS account and transfer funds into it via Advisonomics’ cashku app.
“The app will offer a direct debit solution which will automatically move funds from one’s bank account to his or her PRS account, making things seamless and easy for contributors,” said Advisonomics co-founder Raevendren Ramachandran.
He added that using cashku will enable investors to have more autonomy over their PRS accounts as they would be able to easily self-monitor and self-manage said accounts with the one-stop app, anywhere, anytime.
They would also have the option to board onto cashku’s other funds, with investments as low as RM10.
cashku is Advisonomics’ mobile app that is geared towards democratising financial advice and making financial solutions accessible by everyone.
PRS meanwhile, is a private retirement scheme, which is a voluntary contribution towards retirement funds. In addition to the obvious retirement savings plan, one other significant benefit is the ringgit for ringgit tax relief of up to RM3,000 each year that contributors enjoy.
Commenting on the MoU, PPA CEO Husaini Hussin said that this is PPA’ s first ever partnership that utilises a mobile application, keeping in tandem with the growing prevalence and convenience of business applications.
“With cashku, we are looking to increase awareness and accessibility to retirement planning with PRS and consequently grow our contributor base, especially attracting the younger generation to start saving for their retirement,” he said.
Echoing these sentiments Raevendren expressed concerns that according to EPF 2021 performance briefing some 48% of EPF contributors have less than RM10,000 in their accounts.
“This is alarming and we feel compelled to urgently push the message about the importance of having sufficient retirement savings.
“We hope the cashku-PPA MoU will encourage such savings around the PRS facility, especially as it is the only monthly direct debit into PRS that is available, taking the hassle out of retirement planning.”