Retirement Planning With A PRSA

A PRSA is an excellent method of planning for income in your retirement, particularly for people who currently do not have pension planning in place.  Making the decision to use a PRSA requires a a very detailed analysis of your financial situation, current pension planning, if any, your employment status and  attitude to risk. We provide advice on PRSA’s and we would strongly advise that before making any decision we would meet to discuss in detail, the points outlined below.

What Is A PRSA?

It is a long-term personal retirement account designed to enable you to save for retirement in a flexible manner. Your PRSA is a contract between you and a PRSA provider in the form of an investment account. PRSA’s allow you to change employment and continue to use the same PRSA. You can also switch from one PRSA to another at any time, free of charge.

There are two types of PRSA:

  1. Standard PRSA
  2. Non-Standard PRSA.

Should You Have A PRSA?

We would need to meet and discuss the following points and these information would help in shaping our recommendations:

  • Is there an existing pension scheme available in your job? If you already have a good pension arrangement, you may not need to make any additional provision.
  • Do you already have a defined benefit scheme? You may not need to make any further pension provisions.
  • Do have a defined contribution scheme? If yes, a PRSA would need careful consideration.

How to Invest In A PRSA

Standard PRSA’s invest only in pooled funds where the risk is spread across a large number and variety of investments. Non-Standard PRSAs can offer wider investment choices. We would need to be sure that you understand the investment choices and the reasons why you should opt for them.You should also be sure that you can afford the monthly payment suggested and that this is the most effective payment for tax relief purposes.

PGM Financial Services are available to provide you with information, best advice on how to set up your PRSA. Please see more information on pension retirement planning.

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