The implication of private retirement scheme in AIA Pension and Asset Management Sdn. Bhd. (APAM) / Wan Luqmanul Hakim Wan Ahmad Fathijaya Ningrat

Private Retirement Schemes (PRS) are investment and long-term savings plans that are voluntary and created to assist individuals in increasing their retirement funds. PRS aims to expand the options accessible to all Malaysians, regardless of employment status, in order to improve their retirement funds under a well-structured and organized framework. This research explores the implications of the Private Retirement Scheme (PRS) offered by AIA Pension and Asset Management Sdn. Bhd. (APAM), focusing on the challenges and opportunities associated with these schemes. Despite their potential to provide secure and structured retirement savings, PRS faces several issues, including investment performance due to market volatility, low financial literacy and awareness among Malaysians and shortage of competent staff. This study identifies key areas for improvement and offers strategic recommendations to enhance the effectiveness and attractiveness of PRS. These recommendations include funding significant public education initiatives, reducing administrative and management costs and fostering strategic partnerships. By addressing these challenges and implementing these recommendations, APAM can improve participation rates and ensure that contributors achieve their retirement goals, thereby reinforcing the overall stability and appeal of their PRS offerings.