With regards to starting a private pension, if your current employer does not provide one, your options are a Personal Pension, or a PRSA. Personal circumstances and future employment plans, will influence which best suits each individual case.
A Personal Pension Plan can offer better value in terms of charges than a PRSA, but can never be transferred to another pension plan and you can’t continue to contribute to it and receive tax relief, if you later join a new employer pension scheme.
A PRSA is fully portable if you change your job and you can stop and restart making contributions at any time. Although not obliged to do so, your employer may contribute to your PRSA, whereas an employer cannot contribute to a Personal Pension Plan.
There are two types of PRSA’s – Standard and Non-standard.
Standard PRSA: has a set investment strategy and lowers the risk as you get closer to retirement.
Non-standard PRSA: offers ongoing investment advice, meaning the charges are slightly higher.