# How to select PRSA provider ?



## OneQuestion (8 Aug 2017)

Hi  -  I would like to setup a PRSA having finished in a company scheme last year following redundancy, I am now contracting and wish to make a payment for last year as well as current year and hopefully future years.

Is there anything equivalent to bonkers which provides a comparison to various PRSA providers, comparing charges etc?

Thanks
OneQ


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## OneQuestion (13 Aug 2017)

A followup question to my previous post - I can contribute almost 9K to PRSA for 2016 to avail of 40% tax relief. This year as only working from July onwards and spouse not working, I won't earn enough to pay 40% tax relief so not worthwhile I believe to contribute to PRSA for 2017.

is it still worthwhile to setup PRSA and contribute max I can for 2016 to avail of 40% tax relief, not contribute at all for 2017 and expect to pay 40% tax next year so would make payment to PRSA then.

Thanks


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## Steven Barrett (14 Aug 2017)

There's no problem in making a once off lump sum payment for 2016 and not making any more contributions or making them when you have sufficient levels of income to do so. 

But be aware that if you just made a contribution of €9,000 and nothing more, it won't be worth very much in the end. 


Steven
www.bluewaterfp.ie


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## Merowig (23 Aug 2017)

Go for a low cost one
So either Davy Self Directed PRSA or a PRSA with Zurich or Irish Life via LA Brokers.
https://www.askaboutmoney.com/threads/the-cheapest-prsa.6253/page-6

[broken link removed]


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## Steven Barrett (5 Sep 2017)

Merowig said:


> *Go for a low cost one*
> So either Davy Self Directed PRSA or a PRSA with Zurich or Irish Life via LA Brokers.
> https://www.askaboutmoney.com/threads/the-cheapest-prsa.6253/page-6
> 
> [broken link removed]



Are they low cost? 

Davy Select charge 0.75% AMC and funnel you towards their GPS range which charge between 0.5% - 2%. If you want to buy international ETF's, you are charged more. ITC's PRSA is 0.5% plus the fund charge but you are looking at minimum of €10,000 single premium and minimum of €1,000 a month regular contribution. 

The Execution only with LA Brokers is 1% AMC, just like all the others. 

In both cases, they are execution only, so there is no advice. If you aren't a DIY'er, aren't you better off paying a fee for advice so you have the correct investment strategy? 

A lot of people on this site seem to favour the PRSA over the personal pension, which is a lot more flexible than the PRSA. There's personal pension plans with AMC's ranging from 0.5% - 0.65%. Based in informal information I have received from life companies, you can expect to pay an additional 0.1% for passive funds. 

If you are making a single premium and it's over €10,000, you can get an allocation rate of 101.5% with an AMC of .5% in a personal/executive pension. Pretty good value. 



Steven 
www.bluewaterfp.ie


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## Merowig (6 Sep 2017)

Low cost for PRSAs then - as the majority of PRSAs have a contribution charge which I see as robbery.

I don't believe that the average Joe Doe is better off with advice - and if I would really need advice I would opt for a fee based advisor - not someone who is trying to sell me a product.

Personal pensions have as well policy costs afaik. Can you stop any time your contributions without penalties? Can you transfer you personal pensions to an occupational scheme/a pension vehicle abroad any time without additional costs?
Transfer costs? Exit tax? All this points speak from my personal point of view against a personal pension. They might be suitable for others but unlikely for me.


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## Steven Barrett (7 Sep 2017)

Merowig said:


> Low cost for PRSAs then - as the majority of PRSAs have a contribution charge which I see as robbery.
> 
> I don't believe that the average Joe Doe is better off with advice - *and if I would really need advice I would opt for a fee based advisor* - not someone who is trying to sell me a product.
> 
> ...



People who want a PRSA can pay a fee for it instead of having a contribution charge. As you seem to be comfortable in researching pension etc, you don't need to pay for advice. Like my father in law; he'd never pay a tradesman to do a job, he's quiet happy to do the work himself. I'm useless at DIY. I could look it up on YouTube and spend hours of my time trying to do it and still not be sure I did it right. Or I could pay an expert to do it properly for me and spend the time doing something I enjoy. 

Yes, personal pensions have fees too but there is a bigger choice than those offered by a PRSA. 

You can't transfer a personal pension to an occupational plan but you can route it through a PRSA and do so. They can be set up with no exit penalties, so you are paying lower charges and have greater fund choice.

Exit tax? There's no exit tax on any pensions. 


Steven 
www.bluewaterfp.ie


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