June 5, 2025

PRSA Charges – Ultimate Guide to Reduced Cost

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If you’re considering a PRSA in Ireland—whether as an employee making AVC contributions, a self-employed professional, or a company director—it’s essential to understand how PRSA charges affect your long-term pension value.

The right PRSA strategy should:

Keep costs as low as possible
Match investments to your risk tolerance
Be reviewed and rebalanced regularly for long-term growth

This guide explains the different types of PRSA charges, how to control them, and how to get the most from your retirement savings.

What Are PRSA Charges?

A Personal Retirement Savings Account (PRSA) in Ireland can include up to three types of charges. Understanding these is key to choosing the best-value plan:

1. Allocation (Contribution) Charge

This fee is deducted from your contributions before they’re invested. Some providers charge as much as 5%, but with the right broker you can achieve 100% allocation, meaning all your contributions go to work for you.

2. Fund Manager Charge (FMC)

Also called the base AMC, this is an annual fee for fund management, administration, and reporting. The amount depends on whether the fund is actively or passively managed, and on its asset mix.

3. Financial Advisor Support Charge

An annual charge payable to your financial advisor for:

Ongoing investment advice
Risk management and portfolio monitoring
Administrative support

The FMC and advisor support fee together make up the Annual Management Charge (AMC).

Standard vs. Non-Standard PRSAs

In Ireland, there are two main PRSA types:

Standard PRSA: Limited fund options but capped provider charge of 1.00% p.a.
Non-standard PRSA: Wider investment choice but potentially higher charges.

For those seeking flexibility and strong growth potential, a non-standard PRSA is usually more effective, provided costs are kept under control.

How to Minimise PRSA Charges

If you’re looking for a low-cost PRSA in Ireland, focus on these three steps:

Secure 100% allocation – avoid contribution charges.
Choose wisely – a “non-standard PRSA” offers better investment choice, but don’t accept a provider base AMC above 1.00% p.a. (and aim for lower if contributing above €1,000 PM).
Pay for value, not excess – you shouldn’t pay more than 0.25% p.a. for ongoing investment advice and support.

PRSA Myths and Misconceptions

“The lowest AMC is always best.”

Execution-only PRSAs may look cheap (around 0.75% AMC) but come with restrictions:

Fewer provider options
Limited fund availability
Limited performance track records

“Passive funds always outperform active funds.”

Not always. Passive funds track the market cost-effectively, but certain active fund managers in Ireland do outperform benchmarks over time. A smart PRSA blends both approaches.

“Tracking the S&P 500 guarantees success.”

The S&P 500 doesn’t always beat other markets. Economic cycles, sector trends, and geopolitical factors can shift performance. Most importantly a well diversified PRSA strategy reduces risk.

Smart PRSA Investing

To build long-term wealth through a PRSA:

Diversify – spread investments across equities, bonds, property, and other assets.
Stay flexible – adapt to changing markets.
Control costs – combine low-cost passive funds with carefully chosen active funds.

Indexed funds are useful, but a well-structured, risk-rated PRSA portfolio is essential for consistent growth and reduced volatility.

One Quote: Low-Cost PRSA Solutions in Ireland

At One Quote Financial Brokers, we provide unrestricted PRSA solutions with:

✅ 100% allocation on all contributions
✅ Professional investment monitoring & risk management
✅ Ongoing support at just 0.25% p.a. above the provider AMC

Our PRSA rates: