Recently I stumbled upon i-Saraan when I was in the KWSP office to run an errand. Even though it was introduced a while ago, the scheme seems less popular, or perhaps it is just something I am unaware of.
What Is i-Saraan?
It is a voluntary contribution program with a retirement incentive for individuals that are self-employed & do not have a regular income. As long as you are a Malaysian citizen, self-employed & under 60 years old, you are eligible to contribute under the i-Saraan program.
What Are The Benefits?
There are a number of benefits when you are enrolled under the i-Saraan program and there are multiple perks that you can enjoy.
1. Contribute Any AmountYou can contribute any amount with no minimum. Still, the maximum payment limit is capped at RM60,000 for all voluntary contributions such as self-contribution, i-Saraan, Kasih Suri Keluarga, KWSP & top-up savings contributions. You can also contribute at any time & within your own financial ability.
2. Enjoy The Same Benefit As Other KWSP MembersOne of the perks of being a KWSP member is the annual dividend which is usually higher & stable compared to Fixed Deposits & some other investments out there. It is considered a safe haven investment for many Malaysians. You can also enjoy tax exemption benefits when you contribute under the i-Saraan program which is similar to current EPF member contributions.
3. Special Incentive By The GovernmentIf you are under the i-Saraan program, you can enjoy an additional 15% special incentive from the government with a maximum of RM250 annually for members below 60 years old. This is valid until 2022 but hopefully, the government will extend the benefits to the members.
4. Other BenefitsSimilar to the current EPF member benefits, they are entitled to Death Benefits: RM2500, Incapacitation Benefits: RM5000 & other benefits.
Who Are Under The Self-Employed Category?
- Farmers/Fishermen/Taxi Drivers
- Small Business Owners/Hawkers/Night Market Traders
- Babysitters
- Commission-receiving agents (e.g. insurance agents, real estate agents)
- Freelancers (e.g. those who receive payment for services including deejays, singers, actors, fitness instructors, consultants)
- Business Owners (sole proprietors/partners) involved in the trading of goods and services
- Online Business Owners
- Professionals with their own practice (e.g. accountants, doctors, lawyers)
- Housewives
- Pensionable Employees
Additional Perks If You Are Working With Grab
If you are working under Grab, you can also enjoy additional benefits as per their additional contribution details as below:
To register via Grab, you can click on this link to register.
Conclusion:
If you are self-employed, I fully recommend registering under the i-Saraan program to enjoy all the benefits offered by KWSP & the government. With all the incentives, benefits & annual interest, there is no reason why you shouldn’t register to enjoy the benefits. There is also another retirement scheme that is called PRS which I shared actively years ago. In my next few post, I will be doing the comparison for your reference so you can understand the difference & benefits that you can obtain from both PRS & i-Saraan.
To register for i-Saraan, you can click on this link to register.
OSS!
You can also check out my latest YouTube video on How To Invest Like Warren Buffett:
