Personal Retirement Savings Accounts (PRSAs)
PRSAs - Personal Retirement Savings Accounts
PRSAs are a relatively new form of pension plan that makes it easy for employees to save for retirement because they offer flexibility and convenience.
How do they work?
PRSAs are an alternative type of pension plan. Individuals can save monthly and make once off contributions which go into their Standard PRSA plan. These contributions are then invested in whatever investment fund the individual chooses. Tax relief* is available on contributions, subject to revenue limits and the money saved will become available when the PRSA holder retires. These benefits can be taken in the same way as a personal pension plan.
What are the contribution levels and how can they be made?
There are limits to contribution levels for tax relief purposes. These vary depending on age as the table below illustrates.
Personal
Pensions / PRSAs |
Age |
% of Earnings |
Under
30 years |
15% |
Age
30 - 39 |
20% |
Age
40 -49 |
25% |
Age
50 - 54 |
30% |
Age
55 |
35% |
Age
60 |
40% |
How does the tax relief work?
the table below illustrates the tax savings to be made
per €1000 euro contribution for 20% and 41% Tax Payer.
| |
20% Tax Payer |
41% Tax Payer |
Pension
Contribution |
€1,000 |
€1,000 |
Tax
Relief |
€200 |
€410 |
Real
Cost Net of Tax Relief |
€800 |
€590 |
*PRSI and Health levy Relief of up to 6% may also apply.
We will advise to PRSA policyholders the following:
- the importance of contributing the right amount to their PRSA plan
- the investment options available to them
- the tax advantages of contributing to a PRSA pension
- the retirement benefits available to them
- Regular (half yearly) PRSA pension updates to keep them informed of how their standard PRSA is doing
To contact us or for further information click here
PRSAs | Group Pension Schemes | Additional Voluntary Contributions (AVC) | Personal Retirement Bonds | ARFs and AMRFs
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