I used to think that the SSPN is not worth my time. This was mainly because of the low rate of return it provides. However, I have to say, my view has changed. I’ve overlooked the fact that there’s actually tax relief provided to those who saves money in SSPN for their kids. The tax relief given is up to RM3,000 per year. That’s pretty substantial in my opinion.
On top of that, assuming my tax rate is 12%, I have technically given myself an instant return of 12% (i.e instead of giving the money to the tax office, I’m sacrificing it into the SSPN account and therefore keeping the money to myself).
In summary, I’ll definitely look into using this vehicle in the future.