# PRSA



## sarah (30 Jun 2003)

My employer is paying a small sum towards a pension each month for me, now I know I can contribute myself, but seeing that the money is not paid over straight away I do not wish to avail of this, and I was just wondering could I pay into prsa, or are you only entitled to pay into one pension.


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## ClubMan (30 Jun 2003)

Is your employer paying into an occupational scheme on your behalf even if you don't make any contributions yourself? That is slightly unusual in my experience. Anyway, occupational scheme members can make AVC (additional voluntary contributions) by way of a PRSA if they so choose. You should compare the charges on your employer's occupational scheme and any PRSA you evaluate when considering what is the best strategy. Note that there are vesting rights implications (e.g. in terms of when you are considered a "full member" and entitled to guaranteed benefits based on employer contributions) in making contributions to a scheme other than your occupational scheme which may come into play when you leave your current employer and/or transfer to another employer occupational scheme. Hope this helps.


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## Sarah (30 Jun 2003)

Thank Clubman, Yes my employer is paying the full amount, we were never asked to pay into the pension ourselves. The amount paid for me each month is around €68.00. and I am just curious to whether this is enough, dont get me wrong, it is very good of my boss, but if it is not enough, I feel that I want to be doing something about it. (aged between 30-35)


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## ClubMan (30 Jun 2003)

OK. I presume that the €68 per month as a percentage of your gross monthly salary may be fairly small? If so then you may indeed want to make further pension contributions whether to your occupational scheme or a PRSA (if applicable). This pension calculator, while UK orientated (in terms of pension options and tax treatment), may be useful to give you a very rough idea of how much of your gross you may need to contribute to a pension scheme in order to attaining your desired level of pension fund/retirement income. Note that this is a very inexact science in that it depends on making assumptions about future returns, inflation etc. Hope this helps.


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## MyAdviser (2 Jul 2003)

*Pensions - How much is enough?*

Hi, based on you being 33 next birthday and retiring at age 65 your  employers 68 euro will deliver a fund of about 109k assuming a 6% growth rate and that we ignore any existing value in your fund. This illustration can be enhanced by reducing the charges on the pension by converting it to a nil commission structure. The fund could be increased to 118k.

Either way these values equate to a income of 1.9k to 2k per annum in today’s terms - is that enough?

A few tips before increasing or starting your contributions to your pension

(1) shop around for low cost Pensions/PRSA's. It is possible now to buy them at greatly reduced cost and that way you enhance your fund - see above.
(2) make sure you have an investment strategy that suits you. Many people are very keen on equity investment but they do not suit everyone.
(3) get some advise on what you should be investing and what it will deliver. Most people under fund their retirement.

I hope this helps.

Regards Michael Kiernan
Authorised Adviser & Discount Broker
www.myadviser.ie 

PS The above 6% growth rate is not guaranteed.


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