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What is a PRSA?

A pension is one of the most important investments you can make in your life. PRSAs are a type of pension plan designed to offer flexibility, convenience and value for money to people saving for their retirement. A PRSA is a personal policy in your name and the proceeds of your PRSA are available to provide you with retirement benefits when you retire or reach age 60.

What are the advantages of a PRSA?

Tax relief and tax free growth

PRSAs are a very tax efficient way of saving for your retirement. Payments you make to your PRSA can qualify for generous tax relief so that they will cost you less than you may think. The table below shows how much investing €100 into your PRSA every month will actually cost you depending on your tax rate.

PRSA tax relief

The current income tax rate is subject to change.

Revenue allows full tax relief for PRSA contributions up to the limits as shown in the following table.

Full tax relief for PRSA contributions

Note: Total earnings include all taxable income. The maximum contribution levels are the combination of employee and employer contributions. The earnings limit is currently €115,000 p.a. (January 2011). The entitlement to income tax relief is not automatically guaranteed.

Your PRSA pension contributions are invested in a fund that grows tax free.

Flexibility

  • Contributions to a PRSA are very flexible, you can vary your regular contributions or make once-off contributions. They can be deducted from your wages by the company payroll and you can stop and start contributing without any charges.
  • If you move jobs or employment status you can transfer your PRSA fund to your new employer or to an individual PRSA and continue contributing. There are no transfer charges.
  • Employers can contribute to a PRSA plan if they wish to and help to increase your fund.

More retirement options

A PRSA builds up a fund which is available to you at retirement, at any stage between age 60 and 75 and you can decide at the time what you wish to do with your fund. You can take up to 25% of the fund as a tax free lump sum (subject to a maximum lifetime limit of €200,000). With the rest you can choose from the following options:

Retirement Options with a PRSA

 

Value for money

The maximum charges for Standard PRSAs are capped by the Government at 1% a year of the fund value (called annual management charge) and 5% of each contribution. Your Preliminary Disclosure Certificate will detail the product’s specific charges. The Policy Terms and Conditions will also detail these specific charges.

 

What information will I get with my PRSA?

Irish Life Corporate Business is committed to providing you with all the information you need before and when you start your PRSA and during the years of being a PRSA holder.

  • Before you start your PRSA you will get a document called “Preliminary Disclosure Certificate” that will outline the benefits in broad terms.
  • When you start your PRSA you will get a year by year projection of your contributions, information on fund growth, charges and your likely pension on retirement. You will also receive a PRSA net pay certificate and detailed Policy Terms and Conditions.
  • During the life of your PRSA plan you will receive statements every half year outlining how much was paid into your PRSA over the last half year and the value of your PRSA at that point. You will also get an investment report on all of the funds your contributions have been invested in. Every year you will get a projection similar to the one you received at the start of your PRSA.
  • In addition, you can find out the value of your fund seven days a week by using our dedicated online service Pension Planet Interactive and our phone service Pension Phone.

 

WARNING: If you invest in this product you will not have any access to your money until your retirement date.

WARNING: The value of your investment may go down as well as up.

WARNING: The income you get from this investment may go down as well as up.

WARNING: The value of the fund may be affected by changes in currency exchange rates.

WARNING: If you invest in this product you may lose some or all of the money you invest.

Irish Life Assurance plc is regulated by the Central Bank of Ireland.

In the interest of customer service we may record and monitor calls. Irish Life Assurance plc, Registered in Ireland number 152576, Vat number 9F55923G.

Irish Life Assurance is part of the Irish Life and Permanent Group. Registered office is situated at Irish Life Centre, Lower Abbey Street, Dublin 1.

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