Lowest-Cost PRSA Retirement Savings Option

The Power of Low-Cost Pension Planning

For pension plan investors who prefer selecting their own pension investment funds, a low-cost PRSA can be a really powerful way to maximise their long-term retirement savings.

One Quote Financial Brokers has partnered with Royal London Ireland, to offer an exceptional low Annual Management Charge (AMC) PRSA with 100% allocation.

Here, we, as the broker, operate on an absolute nil-commission basis, the AMC basis in locked in for the term of your PRSA and there are no early-exit, fund switching or policy fees within the PRSA policy.

This execution-only PRSA structure is designed for individuals who:

• are comfortable researching and selecting their own funds

• prioritise low pension charges

• are contributing €500 per month or more

• prefer control over their investment decisions rather than ongoing financial advice

This model may particularly suit self-employed professionals under age 45, professional contractors, as well as many individuals making AVC contributions alongside an existing occupational pension.

By keeping charges low and allowing your retirement savings to compound over time, a more cost-efficient PRSA can significantly increase your eventual retirement fund.

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Why PRSA Charges Matter

Most low-cost, execution-only PRSAs available in Ireland charge a minimum 0.75% Annual Management Charge (AMC).

While this may seem low, it is applied to your entire accumulating pension fund every year and typically for decades.

So, over time, this ongoing cost can significantly reduce the value of your retirement savings.

Example of Typical Charges

Reducing your PRSA charges means more of your money remains invested, allowing compound growth to work in your favour.

Over a 20–30 year period, lowering charges from 0.75% to around 0.35–0.40% can potentially increase your retirement fund by tens of thousands of euros, depending on contributions and investment performance.

Charges are one of the few elements of pension investing you can control, making cost efficiency an important consideration.

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Royal London Ireland – ValueShare

Royal London also provide additional value through their unique profit-sharing mechanisms.

Called ValueShare, this is a bonus added to eligible PRSA policies by Royal London Ireland in years when company performance allows.

Key features include:

• The bonus is typically added annually (usually in April)

• Once added to your policy, it belongs to you permanently

• It compounds alongside your pension fund growth

Over the past three years, including April 2025, the ValueShare award has been 0.13% added to PRSA client accounts.

While modest, even small additional bonuses can compound meaningfully over long investment periods.

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How Lower Charges Can Grow Your Pension

Your retirement fund grows through a combination of:

• regular contributions

• investment returns

• compound growth over time

For example, consider a client contributing €500 per month for 25 years, assuming:

• 5% annual investment growth (before charges)

• contributions increasing by 3–5% annually

A PRSA with 0.35–0.40% charges instead of 0.75% could potentially produce tens of thousands of euros more at retirement, simply because less money is lost to fees each year.

Even small differences in charges can compound dramatically over long investment horizons.

⚠️ These projections assume consistent contributions and long-term investing. Investment returns are not guaranteed and past performance is not indicative of future results.

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Professional Setup Fee: €950

To implement this low-cost PRSA structure, we charge a one-off professional setup fee of €950.

This covers:

• PRSA application and establishment

• regulatory documentation and compliance

• fund access and implementation

• contribution setup and administration

There are no ongoing advisory fees or commissions attached to this service.

Over a 25-year period, a €950 fee equates to less than €40 per year, while the potential savings from lower annual charges could be significantly higher.

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How this Execution-Only PRSA Works

Our broker service provides the administrative setup and access to low-cost funds, but investment decisions remain the responsibility of the client.

Under this model:

• we handle PRSA setup and documentation

• clients select their own funds and investment strategy

• no ongoing investment advice is provided

Clients must ensure that their fund choices match their own risk tolerance, sustainability preferences, time horizon, and retirement objectives.

Investment Risk Rating – ESMA Scale

ratings are typically expressed using the ESMA risk scale, where:

• 1 = lowest risk

• 7 = highest risk

Sustainability Measures – Understanding SFDR Classification

SFDR (Sustainable Finance Disclosure Regulation) classifications indicate how strongly a fund incorporates environmental, social, and governance (ESG) considerations.

Higher SFDR classifications indicate greater integration of sustainability factors within the investment process.

Clients who value sustainability should review individual fund factsheets to understand the ESG approach of each fund.

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Fund Options Available – Making your choice

The PRSA on offer provides access to a wide range of funds including:

Active funds (Royal London Asset Management)
AMC: 0.40% per annum

Passive index funds (BlackRock)
AMC: 0.35% per annum (excluding cash funds)

These options allow investors to construct portfolios aligned with their own investment philosophy, with the assistance on this online Suitability Tool which offers a combination of the risk profiler and sustainability questionnaires. You have the option to complete both, or you can just complete the risk profiler questionnaire if you so wish.

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Other PRSA Features

Optional Portfolio Rebalancing

While many execution-only investors choose one or two passive funds, others prefer to blend both active and passive funds within their portfolio.

With the Royal London PRSA, you can opt to have your portfolio automatically rebalanced so that it continues to reflect the fund allocation percentages you originally selected. You simply choose the frequency of rebalancing, and Royal London Ireland will adjust the holdings accordingly.

This can help maintain your desired investment strategy without the need to manually switch funds over time.

Optional Automatic De-risking

While many execution-only investors prefer to manage their own fund allocation, some providers also offer automatic de-risking strategies, commonly known as lifestyle strategies.

Lifestyle strategies gradually move your pension investments from higher-risk growth funds into lower-risk funds as you approach retirement.

With the Royal London Flexible Lifestyle Strategy, you can choose:

• Your initial risk level

• The length of the de-risking period (5, 10 or 15 years before retirement)

• The final portfolio structure at retirement

Full details of the lifestyle strategies available through the Royal London PRSA are available on request.

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Who This Execution-Only PRSA is Best Suited

This structure is designed for investors who are comfortable managing their own investment decisions.

It may suit:

• Self-employed professionals building retirement savings

• Contractors and freelancers who prefer low-cost solutions

• Individuals contributing €500 per month or more

• PRSA AVC contributors supplementing an existing pension

• Financially literate investors who research funds independently

For these clients, low charges and full control over fund selection can provide a simple and cost-efficient pension structure.

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Who This Option May Not Suit

While low charges are attractive, they are only one part of a well-designed retirement strategy.

This approach may not be suitable for individuals who:

• prefer ongoing investment guidance from a financial broker

• want professional portfolio construction and risk management

• value access to a broader range of providers and funds

• require ongoing retirement planning support

Many investors prefer a fully advised pension structure, where a financial broker provides ongoing advice and oversight in return for a higher ongoing charge.

If this applies to you, you can explore our advisory PRSA services here for a full-service, ongoing retirement planning solution.

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Flexibility for the Future

An execution-only PRSA does not lock you into this approach permanently.

If your circumstances change, you may choose to transfer your PRSA to another provider in the future and move to a fully advised pension structure.

This flexibility allows investors to start with a low-cost solution today while retaining the option to seek professional advice later.

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Key Takeaways

• Lower PRSA charges allow more of your money to remain invested

• Reducing AMC from 0.75% to around 0.35–0.40% can significantly improve long-term outcomes

• A one-off €950 setup fee provides access to a low-cost PRSA structure

• This execution-only model suits experienced investors comfortable making their own investment decisions

• Clients can transfer their PRSA to an advised structure in the future if required

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Total Cost Transparency

Although having only a nominal impact, its important to understand that the AMC or annual management change expressed on any fund, provided by any provider carries Additional Investment Expenses (AIE) however small.

With Royal London Ireland these are clearly outlined on each of their funds factsheets, which are readily available on their fund centre.

Their own RL active funds carry a maximum AIE of 0.18% (2026 data), subject to fund choice.

The BlackRock passive funds offering carry a maximum AIE of 0.08% (2026 data) subject to fund choice.

Take Control of Your PRSA Costs

For investors who prioritise low charges, transparency, and control, an execution-only PRSA can be a powerful way to build retirement wealth efficiently.

If you are comfortable selecting your own funds and contributing €500 per month or more, this low-cost PRSA structure could significantly reduce the long-term cost of building your pension.

If you’d prefer professional, ongoing guidance instead, you can also view our advisory PRSA options here.

Contact One Quote Financial Brokers today to arrange your professional execution-only PRSA setup.