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 more easily portable than a Personal Pension Plan if self-employed, but they tend to carry higher charges.
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 come in 2 formats as “Standard” with a maximum annual fund management charge (AMC) of 1% and as “Non-Standard”, where this AMC will be higher to account for broader investment fund choice.
In addition to the annual fund management charge which is levied against your fund value, PRSA’s also carry a contribution charge. A contribution charge is taken on payments as they are invested in your PRSA, with the typical charge of 5% deducted against each payment.
Low Cost PRSA:
At One Quote Financial Brokers, we offer a low-cost Non-Standard PRSA solution so that you have maximum fund choice but without any increase in the AMC nor any contribution charge.
We do this by taking no initial commission, no renewal commission, and no fund-based trail commission and offer Zurich’s Non-standard PRSA, with an unlimited choice of Zurich fund offerings together with free fund switches.
Low Cost PRSA.
Broadest investment fund choice including a range of risk rated actively managed multi-asset funds.
Annual Management Charge: 1% PA
Contribution Charge: Nil
Initial investment advice: Yes
Free Fund Switches: Yes
Once off set-up fee: €320.00
PRSA’s – Key Highlights:
Full PAYE tax-relief.
Flexibility or alter or stop and start contributions.
Tax-free investment growth.
25% Tax-free lump sum at retirement.
Pension Investment Videos
Starting a PRSA
The Right Advice
Our job is to provide the best PRSA advice, offering the broadest range of investment choices, with a minimum cost aligned to your personal investment risk profile.
When arranging your PRSA you need to be fully aware of the underlying costs involved and be able to choose the right investment funds and strategy to grow your pension fund over time.
Both online access and ongoing advice are important, so we provide 24/7 online access, with regular market monitoring and investment updates. These key services are built into your chosen PRSA.
At One Quote Financial Brokers, our advice based PRSA offerings include:
Free Personal Consultation.
The Lowest Annual Management Charges (AMC’s).
The Broadest Fund Choice, Active & Passive.
Quarterly Investment Updates.
Higher Investment Allocation.
24/7 Online Plan Access.
Free Fund Switching.
Annual Benefit Statements.
PRSA Retirement Benefits
Your Options at Retirement
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.
PRSA Fund Choice
Assessing your investment options
As a pension broker, we compare the market for the best PRSA products and offer the broadest range of investment fund options including; multi-asset, with-profit and alternative options.
One Quote Financial Brokers partnered fund managers include a choice of; Zurich, Aviva, New Ireland, Irish Life, Friends First, Columbia Threadneedle, BlackRock, Dimensional, BNP Paribas, Legal & General, BNY Mellon, State Street, Goodbody, Merrion, JP Morgan and Invesco.
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.