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INCEIF 201 2.

PRIVATE RETIREMENT SCHEME:An Academic & ShariahPerspective

6th September 2012

MFPC & FPAM Financial Planning Seminar 2012

Bukit Kiara Equestrian & Country Resort

PROF. DATUK DR. SYED OTHMAN ALHABSHI


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Introduction

What is PRS

The Associated Advantages

Caution On Some Risks

Involved Some Shariah Issues and

Challenges

Conclusion

2

CONTENTS


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Introduction

What is PRS




Challenges

Conclusion

3

CONTENTS


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INTRODUCTION

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The need to plan for retirement

Everyone grows older

Need to work hard when young to accumulate as much

wealth for old time sake Costs of living escalates every decade

Major cost is medical


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INTRODUCTION (Contd)

5

If my body was a car, this is the time I would be thinkingabout trading it in for a newer model. I've got bumps anddentsand scratches in my finish and my paint job isgetting a

little dull...But that'snot theworst of it.


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My headlights are out of focus and it's especially hard to seethingsup close

My traction is not as graceful as it once was. I slip and slideand skid and bump into thingseven in the best of weather.

My whitewallsarestained with varicose veins.


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It takes me hours to reach my maximum speed. My fuel rateburnsinefficiently.

But here's the worst of it. Almost every time I sneeze, cough

or sputter, either my radiator leaksor My Exhaust Backfires! What do you think would happen if you dont plan for

retirement? Retirement is not just to sit around doingnothing, but you must have an active and healthy quality life,not sickly boring life


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The Role of compulsory Pension funds

Basically to provide funds for retirement

You only get what you save

You can enhance it when you invest You should plan not only for your current but also your

future needs

More than often, the EPF is not sufficient if not well

planned


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Theneed for other pension schemes

PRSis one

Can also take up good investments in various investment

schemes,such asunit trust, real estate, etc ASN,ASB, etc.

Gold bars

Should also think of insurance and takaful


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INCEIF 201 2.

Introduction

What is PRS




Challenges

Conclusion

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CONTENTS


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WHAT IS PRS?

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A voluntary pension scheme

Forced savingsfor the future that suits individual needs

Well regulated to avoid any unfair dealings


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Introduction

What is PRS




Challenges

Conclusion

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CONTENTS


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THE ASSOCIATED ADVANTAGES

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Possibility of growth in the fund because of the large scale

Allows planning and management of funds for the futureneeds

Good for employersto retain talents Supportsbetter quality of life


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Introduction

What is PRS




Challenges

Conclusion

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CONTENTS


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CAUTION ON SOME RISKS INVOLVED

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Thefund issubject volatility of the capital market

It doesnot pay to begreedy

It is better to have small returns than chasing for higher but

very risky returns


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Introduction

What is PRS




Challenges

Conclusion

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CONTENTS


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SOME SHARIAH ISSUES AND CHALLENGES

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Shariah compliant investments

Distribution upon death subject to Faraid

Should consider zakat payment

Be helpful to otherswhen you can


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Introduction

What is PRS




Challenges

Conclusion

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CONTENTS


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CONCLUSION

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PRSisan excellent avenue for personal financial planning

It provides opportunities for better quality of life atretirement


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Q & A

THANK YOU


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Tel:Email:Website:

+603 7651 4000

www.inceif.org

Prof Datuk Dr Syed Othman Alhabshi

[email protected]

Chief Academic Officer

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