A PRSA is a personal retirement savings account, best suited to the self-employed, employees without an employer pension scheme and those wishing to make additional voluntary contribuions to enhance the benefits provided under their employers pension scheme. They are flexible, portable, cost-efficient and offer great tax breaks.
The average person retiring tomorrow aged 65 years has a life expectancy of between 20 years, that’s a significant amount of time to enjoy in retirement.
It takes a long time to save for retirement and the earlier a person starts the better.
Taking stock of your existing pension can reduce investment charges and allow greater control over your benefits come retirement.
PRSA’s – Personal Retirement Savings Accounts
PRSA’s – Advantages:
PAYE contribution tax-relief.
Flexibility to alter or stop and start contributions.
Tax-free investment growth.
Fully job portable.
Our Low Cost – PRSA Options
To avail of our low-cost PRSA solutions, you can choose between:
1. Nil Commission – Execution Only with a once-off fee. No contribution charge 1% Annual Fund Management Charge OR 2. Reduced Commission – Retained Advisory with no fee. Reduced contribution charge 1% Annual Fund Management Charge
Both options include:
24/7 Online Portal Access.
Automatic Annual Benefit Statements.
Standard PRSA – No Contribution Charge
Execution Only Standard PRSA – Nil Commission – Option 1
Standard PRSA’s – 100% investment option – Execution Only
Under this option, there is no 5% contribution charge, so you always get 100% investment with a 1% Plan AMC, together with the choice of a default investment strategy, that automatically reduces investment risk with age, or you can alternatively make your own selection from a wide range of provider funds.
This offer is also available for payroll deduction (employer-sponsored PRSA) arrangements where the debits are taken from the employer rather than your own bank account, in which case your employer must complete a PRSA letter of appointment and direct debit mandate.
Through Payroll: €500.00 per member once-off direct set-up fee.
1. Online application return. 2. Payment of Invoice. 3. Online document release including tax relief certificate.
Note: This option does not investment advice at set-up. It does include 24/7 online access, and direct provider access, with any requests for our assistance or advice thereafter, charged directly direct fee.
PRSA AVCs due to the nature of the additional advice, are strictly only made available under option 2 – Retained Advisory.
Standard PRSA – Reduced Contribution Charge
Standard PRSA – Retained Advice – Option 2
Standard PRSA’s – No Fee – Retained Advisory.
Under this option, the contribution charge can range from 2.0% to 3.0%, reducing the more you invest, with a 1% plan AMC. We do this by taking a reduced commission with no direct fee. This option is also made available to employer-sponsored/salary deduction Group PRSA arrangements with a minimum membership of 5 employees.
• 1.00% AMC • Up to 98.00% investment allocation • Choice of PRSA Providers • Widest choice of investment funds • Annual benefit statements • Monthly or annual regular contributions • Variable lump sum contributions accepted
Consultation & Application Process
1. Online personal risk profiling. 2. ESG – Sustainability preference screening. 3. Detailed fund performance comparative to assist with selection. 4. Online application return. 5. Online document release including tax relief certificate.
Note: This option includes investment advice at set-up, 24/7 online access, annual broker reviews, and retained service and advice.
Other Private Pension Options
If you are long-term, self-employed with your own business a Personal Pension plan may provide the best alternative low-cost retirement planning solution, with AMC’s of 1% PA, 100% investment allocation, and retained broker support.
For self-employed contractors and or others operating as limited companies, an Executive Pension Plan will offer additional benefits, for more information see our executive pension guide.
Pension Investment Videos
Options at Retirement
Your PRSA Retirement Options
Come retirement when you’re ready to take your benefits, your options are to take a tax-free lump sum and buy an Annuity which is a paycheque for life or having taken your lump sum to reinvest the balance in an ARF and make income withdrawals from that.
Cash Lump Sum
You can draw a lump sum based on 25% of the value of the pension pot.
An annuity pays a retirement income for the rest of your life in exchange for the balance of your pension pot at retirement.
An ARF allows you to retain your pension pot at retirement, subject to minimum withdrawals and can be passed on to your family on death.
Reviewing Existing PRSA’s
Existing PRSA Switches – Cost Reduction
If you already have a PRSA in place, you need to be sure of 3 things:
That the underlying investments are in line with your attitude to investment risk
That the charges are reasonable and transparent
Many PRSA’s are been overcharged by inbuilt plan costs, including:
Investment Contribution Charges
Ongoing Adviser Commissions
Excessive Non-standard Fund Manager Fee’s
If you’re in any way unsure about your PRSA charges, then you should consider talking to One Quote about a cost saving pension review.