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).

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