PRSA’s – Personal Retirement Savings Accounts
In 2002 the Government introduced Personal Retirement Savings Accounts (PRSAs), a very flexible and attractive way of saving for retirement. Just like other forms of pensions, PRSAs come with attractive tax reliefs and offer access to a wide range of investment funds and options, so you get all the freedom to tailor your pension to your needs and circumstances. What’s more, when you move from job to job your PRSA comes with you, so your retirement plans will never suffer and extra charges won’t be applied.
We have extensive experience of helping people choose the PRSA that is right for them.
Who can take out a PRSA?
Anyone can take out a PRSA: employees, the self-employed, part-time workers and those who are unemployed.
You can use a PRSA as your primary pension plan but if you already have a company pension you can also set up a PRSA and use it to make Additional Voluntary Contributions (AVCs) that are separate to your company pension.
Who should set up a PRSA?
You should set up a PRSA if you do not have access to a company pension scheme or if you are self-employed.
You should set up a PRSA if you are a member of a company pension scheme but want to make separate Additional Voluntary Contributions (AVCs).
What types of PRSAs are available?
Standard PRSA – this type of plan comes with less freedom of choice in terms of the types of investment funds available but does have the advantage of charges being capped at 5% of contributions and 1% per annum on the asset value.
Non-standard PRSA – this type of plan offers a greater choice of investment funds but has no limit on the amount of charges that can be applied.
What are the advantages of PRSAs?
You can take your PRSA with you from job to job.
With a Standard PRSA the charges you pay are capped.
You can use a PRSA to make AVCs if you are already company scheme member.
Warning: The value of your investment may go down as well as up.