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PRSA - Personal Options

For the self-employed and employees wanting to make AVCs to enhance their employer scheme benefits.

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Private Pensions

PRSA Options

A PRSA is a Personal Retirement Savings Account. It is best suited to the self-employed and to those wishing to make additional voluntary contributions, to enhance their existing employer sponsored payroll pension, but also to certain owner directors (see Executive PRSA).

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Options PRSA

Private Pensions

PRSA Options

Through a host of leading PRSA providers, we grant 100% allocation and offer superior "Non-Standard PRSAs" at no added cost for allowing multi-fund portfolio construction.

There are: No Set-up Fees, No Policy Fees, No Exit Fees, and No Fund-Switching Fees, with a choice of service basis, that works for you:

(A) Execution-Only services include:
. 24/7 Online Portal Access
. Annual Benefit Statements

(B) Retained Advisory services add:
. Long-term Investment Support
. Administrative Services

Minimum AMCs apply subject to the size of your regular monthly contributions (see FAQ below) and choice of an Execution-Only basis, or a Retained Advisory service.

Full contribution tax relief applies, so for a 40% taxpayer, this means that every €500.00 contributed it actually costs just €300.00 after tax-relief.
If you are a company director, see our PRSA - Executive solutions.

Private Pensions

PRSA Benefits at Retirement

Come retirement (from age 60), your options are to take a tax-free lump sum and buy an Annuity, which is a pay cheque for life, or you can reinvest the balance in an ARF, and make income withdrawals from that.

There is also the option of vesting your PRSA, which effectively means taking your tax-free cash and freezing contributions at age 75, receiving an income from the fund.

1. Tax Free Cash

You can take a lump sum equating to 25% of the value of the pension pot. A limit of €500,000 applies, with the first €200,000 tax-free and the balance taxed at 20%.

2. Annuity Option

An annuity pays a retirement income for the rest of your life, in exchange for the balance of your pension pot at retirement.

3. ARF Option

An ARF allows you to retain your residual pension pot at retirement, subject to minimum withdrawals, and can be passed on to your family on death.

Pension Advice
PRSA Contribution Limits

Private Pensions

PRSA-Annual Limits

PRSA personal contribution tax relief becomes more generous as you get older, rising from 15% under the age of 30, to as high as 40% over age 60.

There is an upper limit on your annual salaried earnings, which currently stands at €115,000. Jointly assessed couples can however each avail of their own separate thresholds.

Age-related percentage limit for tax relief on pension contributions
Age
Percentage limit
Under 30
15 %
30-39
20 %
40-49
25 %
50-54
30 %
55-59
35 %
60 or over
40 %

You might have more than one source of income. If you do, this relief is only from the source of income in respect of which the contributions are made.

Frequently Asked Questions

PRSA - FAQs

All you need to know about Personal Retirement Savings Accounts - PRSAs.

Yes, the minimum gross monthly contribution is €500 per month, which equates to €300 after tax-relief. You can then choose an advisory or execution-only service.

We offer 100% allocation, with no restrictions on fund choice. As standard there are no set-up fees, policy fees, fund switching, or early-exit fees. Subject to provider minimum AMCs, the following our most cost competitive options, assuming actively managed fund choices:

Advisory: 

Min €500 PM – €999.00 PM =1.25% AMC 

Min €1,000 PM + = 1.00% AMC

Execution-Only – No Fee

Min €1,000 PM + : From 0.75% AMC

Execution-Only – Broker Fee (limited offer)

€950 PM – Set-up Fee

Min €500 PM + : From 0.40% AMC

Some provider fund choices may reduce stated AMCs by 0.05% under passive fund options.

We offer PRSAs through all leading insurers including: Aviva, New Ireland, Royal London, Zurich, Irish Life and Standard Life. The lowest AMC charges outlined are subject to each providers minimum AMC and the service offering selected.

A PRSA represents the most flexible pension plan option for those without an employer sponsored pension scheme.

  • Standard PRSA – This a personal retirement savings account offered by a range of insurance companies. Its invests in unit-lined funds which are designed to diversify risk across different asset classes and for this reason offers a selection of fund choices, but they can be limited. The provider base AMC is also limited to a maximum 1.00% PA charge.
 
  • Non-Standard PRSA – Is similar to a Standard PRSA, but can be provided through insurance companies, as well as through stockbroking firms. Non-standard PRSAs tend to carry broader investment choice, but also typically carry higher charges. That said we keep the base AMC at 1.00% PA.

Yes, all private pension holders are still entitled to the State pension in addition. The current State Social Welfare Pension is only: €265.30 per week. The contributory pension starts at age 66 and the non-contributory not until age 67. Personal pension plan benefits can be taken from age 60 onwards and will not reduce your State pension benefits.

A PRSA provides full tax relief on contributions, as well as tax-free fund growth, plus a tax-free lump payment option come retirement.

AGE – MAXIMUM PENSION CONTRIBUTION AS % OF NET RELEVANT EARNINGS

  • Up to 29 years : 15%
  • 30 to 39 years : 20%
  • 40 to 49 years : 25%
  • 50 to 54 years : 30%
  • 55 to 59 years : 35%
  • 60 and over : 40%

You make regular monthly contributions via direct debit from your personal bank account. You can also make ad-hoc lump sum payments at the end of each via online transfer to reduce your previous year’s balancing tax bill.

If you have to stop working due to serious ill-health, you can take your pension benefits early otherwise the earliest you can access your benefits is age 60 (unless its is an employer sponsored PRSA and you are retiring from all employments, only then its from age 50).

Once you have taken your 25% tax-free, you can choose to reinvest the balance in an ARF (investing in funds for tax-free growth as before) and make regular and ad hoc withdrawals to provide an income. Alternatively you can vest your PRSA from age 75.

The PRSA fund value in the deceased’s name is paid in full, as a lump sum to your estate, for distribution in accordance with your will.

Inheritance tax rules apply, so no tax on the portion that goes to your spouse.

Where a PRSA holder, has not commenced taking retirement benefits and has reached their 75th birthday, Revenue will treat the PRSA as vested meaning after the payment of the 25% tax free lump sum the balance will stay invested.

A vested PRSA is treated for tax purposes as the equivalent of an ARF. This means that an imputed distribution of 4% pa will apply to the PRSA and those that hold ARFs and vested PRSAs with a combined value in excess of €2m will pay an imputed distribution of 6% pa. On death, the vested PRSA will be treated in an identical manner to an ARF as it will form part of a deceased’s estate.

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Cillian Dickson
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Looking after my executive pension plan, One Quote provide superb choice and value with online access and annual reviews to keep track. They represent a solid choice of broker.
Paul Hollins
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I have my Executive Pension with One Quote and choose them based on investment fund choice, flexibility, competitive charges and service. Very happy to recommend.
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One Quote took the time to understand my needs as a contractor and explained my options in detail. I chose them based on the detail provided, low-cost, service and flexibility.
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As a company owner, I have One Quote looking after my pension planning needs. Their service is prompt, friendly and very cost competitive. I have no hesitation in recommending them.

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