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 career portable.
Regular Cost PRSA Types
1. Standard, with a maximum annual fund management charge (AMC) of 1%, but somewhat limited investment fund options.
2. Non-Standard, where the AMC will be higher than 1% PA to account for broader investment fund choice.
In addition to the annual fund management charge (AMC) which is levied against your fund value, PRSA’s also normally carry a contribution charge which taken on payments as they are invested in your PRSA, with a typical charge of 5% deducted against each payment.
Low Cost PRSA Service
Low Cost PRSA Offerings
To avail of our low-cost PRSA solutions, you can choose between a fee or no fee option, which include:
Free Personal Consultation.
24/7 Online Plan Access.
Free Fund Switches.
Annual Benefit Statements.
Standard PRSA – No Contribution Charge
Standard PRSA – Option 1
Execution Only – Zurich Standard PRSA – Nil Commission Option
Under this option, there is no 5% contribution charge, so you always get 100% investment with a 1% AMC.
Outside the option of a default investment strategy that reduces risk with age or you can select from the following Zurich fund options:
• All 6 Prisma Funds • Cash • Active Asset Allocation • Cautiously Managed • Balanced • Dynamic • Divided Growth • Active Fixed Income • Long Bond • Eurozone Equity • International Equity • 5 star 5 Global • 5 star 5 Europe • 5 star 5 Americas • 5 star 5 Asia Pacific
This offer is not available to employer-sponsored Group PRSA arrangements, however, that is not to say that your existing or new employer can’t contribute to it at a date, later provided you contact Zurich directly and provide written instruction with a PRSA letter of appointment & DDM to set up the employer for salary deduction.
€500.00 once-off direct set-up fee.
• 1% AMC • 100% investment allocation • Choice of 20 investment funds • Annual benefit statements • Up to 4 Free fund switches PA
Consultation & Application Process
1. Online personal risk profiling. 2. Fund choice confirmation. 3. Online application return. 4. Payment of Invoice. 5. Online document release including tax relief certificate.
Standard PRSA – Reduced Contribution Charge
Standard PRSA – Retained Advice – Option 2
Standard PRSA’s – Zurich Individual & Employer Sponsored Option.
Under this option, the contribution charge can range from 2.0% to 3.5%, reducing the more you invest, with a 1% AMC. We do this by taking a reduced commission with no direct fee. This is also made available to employer-sponsored Group PRSA arrangements with a minimum membership of 5 employees.
• 1% AMC • Up to 98.00% investment allocation • Choice of 20 investment funds • Annual benefit statements • Up to 4 Free fund switches PA • Monthly or annual regular contributions • Variable lump sum contributions accepted
Consultation & Application Process
1. Online personal risk profiling. 2. Fund choice confirmation. 3. Online application return. 4. Online document release including tax relief certificate.
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
PRSA Retirement Benefits
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-stanard 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.