PRSA' for already retired?

T

Tom covenant

Guest
Hi I was wondering about taking out a PRSA. I am 41 but retired due to ill health. However, I hope to be back in work in a few yrs, health permitting. I currently receive an ill health pension from last employers and the state.


Is a PRSA a good option for me, can I even avail of it?

Thanks in advance.
 
Hi Tom

Although PRSAs are promoted to people in your position, they are a bad idea. You will not get any tax relief until you start working again. In the worst case, you will not work again and won't get any tax relief. When you start drawing down your pension, it will be taxed.

You should find some other vehicle for saving.

Brendan
 
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