Personal Retirement Savings Account – PRSA

Pension planning for retirement

 

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:

  1. a Standard PRSA which has a narrow range of investment options with maximum charging; and
  2. 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 administer approximately €900 million in retirement funds and personal funds on behalf of our clients (figure correct as at June 2015).

As an independent company, we are uniquely positioned to provide you with the broadest possible range of investment options.

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.

 

 

PRSA - Pension