PRSA
Will the State Pension (Contributory) of €209.30 per week* be enough for you to maintain your current standard of living when you retire?
A Personal Retirement Savings Account (PRSA) is an account set up by you to build up a fund for retirement.
It is a tax-efficient, flexible and convenient way to save for your retirement.
* (Personal Rate as at January 2007)
Features
More Benefits from a Personal Retirement Savings Account (PRSA)
- The pension that can be started by virtually anyone (eg if you don't have access to a pension scheme at work, or if you work in the home, work part-time or are currently unemployed)
- Flexible savings - start with as little as €25 per month
- Increase/decrease contributions when it suits
- Claim generous tax relief on your contributions, tax-free growth on your investment and a tax-free lump sum at retirement.
- Flexible options on retirement
- Choose from 10 different investment options.
- And PRSA Choice is a non-standard PRSA that gives access to 24 investment funds, with varying degrees of risk
Fees and Charges
A Standard PRSA cannot charge more than 5% on any regular contributions you make and also an annual management fee of 1% of your fund.
Important Note:
It is important to note that the value of the pension investment fund will depend on a number of factors including investment returns, which are not guaranteed. Past performance is not necessarily a reliable guide to future investment returns, which may be higher or lower than assumed. The value of your investment and the sum you originally invested are not guaranteed.
Terms and conditions apply. Your PRSA is governed by a policy document and if there is any conflict between the information on this website and the policy conditions the policy conditions will prevail.
The information about Bank of Ireland Life's products and services is intended only for Irish residents. Bank of Ireland Life's products may only be bought by Irish residents.
New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Central Bank of Ireland and is a member of the Bank of Ireland Group. Bank of Ireland and Bank of Ireland Insurance and Investments Limited are regulated by the Central Bank of Ireland and are tied agents of New Ireland Assurance Company plc.
Terms and Conditions
If you are a higher rate taxpayer, for every €1 you save you can claim 41 cent back in tax relief. So, if you make an overall annual contribution of €1,000, this means it will actually only cost you €590, after tax relief.
The Government has set certain limits on the percentage of earnings on which you can claim tax relief. The limit is related to your income or earnings and to your age.
The following table shows how much tax relief you are entitled to claim:
| Age | % of Earnings |
| Under 30 | 15% |
| 30-39 | 20% |
| 40-49 | 25% |
| 50-54 | 30% |
| 55-59 | 35% |
| 60 plus | 40% |
It should also be noted that tax relief is not automatically granted - you must satisfy the Revenue requirements.
An annual earnings cap (which can change each year) is currently €262,382 for 2007 and applies to pension contributions for tax relief purposes.
Contributions paid in any year in excess of the maximum tax deductible contribution may be carried forward and claimed in future years subject to the annual limit for those years.
Similarly, contributions paid while out of the workforce may be carried forward and claimed against future earnings on return to paid employment subject to the annual limits.
Legislation restricts the maximum pension fund you may have on retirement. It also restricts the amount of tax-free cash you may take. These limits apply to the aggregate of all of your pension plans. These limits (which may change each year) are €5,165,000 and €1,291,250 respectively for 2007. If your benefit exceeds the limits, the excess amounts will be subject to tax.
Important Notice
It is important to note that the value of the pension investment fund will depend on a number of factors including investment returns, which are not guaranteed. Past performance is not necessarily a reliable guide to future investment returns, which may be higher or lower than assumed. The value of your investment and the sum you originally invested are not guaranteed.
Terms and conditions apply. Your PRSA is governed by a policy document and if there is any conflict between the information on this website and the policy conditions the policy conditions will prevail.
The information about Bank of Ireland Life's products and services is intended only for Irish residents. Bank of Ireland Life's products may only be bought by Irish residents.
The information about Bank of Ireland Life's products and services is intended only for Irish residents. Bank of Ireland Life's products may only be bought by Irish residents.
New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Central Bank of Ireland and is a member of the Bank of Ireland Group. Bank of Ireland and Bank of Ireland Insurance and Investments Limited are regulated by the Central Bank of Ireland and are tied agents of New Ireland Assurance Company plc.