What is a Personal Retirement Savings Account (PRSA)?
A PRSA is a highly flexible long-term retirement arrangement designed to allow you to save for your retirement in a manner that suits you.
There are two types of PRSAs:
- a Standard PRSA which has a narrow range of investment options with maximum charging; and
- an Advisory PRSA, also referred to as a Non-Standard PRSA, which has a wide range of investment options without maximum charging.
Who can set up a Personal Retirement Savings Account – PRSA?
Anyone can set up a PRSA with an authorised PRSA provider, regardless of their employment status. PRSA contracts (self-administered or insured) are issued by investment firms and life assurance companies who are authorised as PRSA providers.
A PRSA is a tax efficient individual retirement arrangement which enables you and / or your employer to make regular and / or once-off contributions which are tax deductible. If you are a member of an Occupational Pension Scheme through your company, you can only pay Additional Voluntary Contributions (AVCs) to the PRSA.
What can your self-administered Advisory PRSA invest in?
The investment choice is ultimately down to you. Some of the assets clients invest in are:
- Property (geared and ungeared);
- Personalised Equity Portfolios;
- Corporate and Government Bonds;
- International Funds;
- Private Equity; and
- Deposits.
When can you access the pension benefits of a PRSA?
You can normally take benefits from a PRSA when you are aged between 60 and 75.
In certain circumstances you can take your pension benefits before age 60 such as:
- on retirement from employment at age 50 or over;
- certain self-employed occupations from age 50; or
- at any time in the event of serious ill health / permanent incapacity.
Why a self-administered Advisory PRSA?
Harvest Financial Services Limited provides you with a unit trust structure to hold the assets of your self-administered Advisory PRSA which means that we take care of all the investment administration for the PRSA provider.
Harvest Financial Services Limited has been providing self-administered pension solutions to clients since 1993. We oversee approximately €1 billion assets on behalf of our clients who are pension funds, private individuals, corporations and charities. (figure correct as at November 2017).
Whether you want the investment flexibility and / or the cost transparency of a self-administered Advisory PRSA, we will work with you to maximize the benefits of the self-administered Advisory PRSA to secure your income in retirement. For more information, or to arrange a meeting to discuss the suitability of the self-administered Advisory PRSA for your retirement provision needs, please contact us on 01 2375500 or email justask@harvestfinancial.ie.
