PRSA Flexibility

T

tdoolie

Guest
Hi,
I want to start a standard PRSA as soon as possible (i'm thinking of an Eagle Star through an execution only broker) but would like the option of changing to a non-standard PRSA in the future once I know more about my options/the market.

Can I own a number of different PRSA's that cover a range of different markets and have different risks?
And so stop or divert my payments into one or other of them depending how they are performing and my available income ?

Also I know that there are no charges involved to switch my PRSA to a different provider in the future, but do i have to go through a broker [who will have a fee] to do this or can i do it myself ?
Incidentally, although no-charge provider switching is a feature of PRSA's, how likely/frequent does this happen ?

Thanks for any advice!
 
If you are considering going for a non standard PRSA at any stage then you should only do so if there is a clear reason to do so particularly since some non standard PRSAs can charge more than standard PRSA and, specifically, more than the 1%/5% capped charges that apply to the latter. As far as I can see non standard PRSAs in general don't really offer much to justify paying more for them.

You can have as many pensions as you want (PRSAs, personal pension plans, occupational funds etc.) but, in general, you can only contribute to one at any one time or at least only claim tax/PRSI relief on contributions to one at any one time.
 
You can contribute to more than one personal pension at the same time, but you still must obey the overall maximum contribution limits - i.e. you can't contribute up to the max to four different policies, the total contribution between all four can't exceed the max.
 
great thanks for the information

i've read on other forums here the analogy that brokers provide or negotiate pensions and investment products at wholesale prices where as banks sell them at retail prices, which is why some brokers can afford such discounts like NO 5% charge on contributions.

I just find it really surprising that if i'm putting say 250euro a month into a 100% contribution pension from a broker then every year i'm saving 150euros over what i would have got directly through a bank, and yet I didn't know about this till i looked over things on the website here...

if there was a shop in town that sold identical products at a 5% discount to their rivals surely everyone would know about it ? especially if it was every year for the next 30 years, guaranteed !!

i suppose its similar to the recent "free fees" current account offers. they are widely publicised yet a fairly large percentage of bank users must still be paying fees...
 
If I have an existing PRSA, can I open up another one just to roll over my SSIA lump sum at 0% charges and 1% management fee, as my provider would charge 5%? If i change my PRSA to a broker for a fee and it is still the same PRSA would my employer be allowed to discontinue the small contribution they make or would they not even see the difference. What would change if i go for execution-only through a broker, can i still deduct the amount via pay-roll?
Fanny
 
tdoolie said:
if there was a shop in town that sold identical products at a 5% discount to their rivals surely everyone would know about it ?
Click to expand...
Yes - but as with retailing some people pay higher prices anyway for various reasons (e.g. inertia/laziness, convenience, to impress others etc.) or none.
 
Each to their own. It's only when they willingly pay above the odds and then start moaning about being ripped off that there is a problem in my view.
 
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