Personal Retirement Savings Account (PRSA)
At DW Financial we will help you select the most suitable Personal Retirement Savings Account (PRSA) for you. A PRSA is a retirement savings plan that was introduced in 2002. It was designed with long term savings in mind. Like a Personal Pension Plan it is owned by you and taken out in your name.
A PRSA has many benefits such as:
• Portability – You can move your PRSA from one employment to another.
• Your employer can contribute to your PRSA.
• You can pay your PRSA by direct debit or it can be deducted from your salary.
• You decide how much you contribute towards your plan.
• The flexibility within the plan allows you to increase or decrease your contribution level as you see fit.
• You have the option to retire from age 60.
• You do not have to give up work to avail of your retirement options.
Is a PRSA for me?
PRSA’s are available to everyone whether you are an employee, self-employed or not in taxable employment. You do not have to have a taxable income to contribute to a PRSA. This gives people the flexibility to save for retirement even if they are not currently working.
There are two types of PRSA. A Standard PRSA and a Non-Standard PRSA. The difference between the two is shown below.
- There is a maximum level of charges that can be applied i.e. 5% of premiums paid and 1% per year of the PRSA fund value.
- The PRSA funds can only be invested in pooled funds where the assets are spread across a large number and type of investments to spread the risk.
- There is no maximum level of charges that can be applied.
- There is a wider range of funds available to invest in under a Non-Standard PRSA.
When saving for retirement it is important to know how you can access your PRSA at your chosen retirement age. With a PRSA you can do the following:
• Take 25% of your fund as a tax free lump sum (subject to a maximum of €200,000).
• Use the balance of your fund to:
A. Purchase an Annuity
B. Invest in an ARF (Approved Retirement Fund) / AMRF (Approved Minimum Retirement
• Take a taxable lump sum
An Annuity is an income that is guaranteed for your life.
An ARF/AMRF is an investment that allows you to continue to invest in the markets and take a flexible income from the fund.
DW Financial will help you in every aspect of planning for your retirement. When considering your options, we look at everything from how much to contribute, what provider to use and which fund to select. We endeavour to help you make the best possible decision to plan for your retirement.