PRSA - key questions ?

P

peggybetty

Guest
I have yet to take out a PRSA, no work pension. Planning on going to see bank next week. Does anyone have a list of key questions I should be asking ??
Thanks
 
Why restrict yourself to your existing (I presume) bank? Don't expect independent advice from any tied agent such as this. They will simply try to sell you their own products. Don't be surprised if they harp on about how brilliant they were over some period in the past when, in fact, past performance is irrelevant. You should shop around for the best deal that is suitable to your needs.

Key issues with any sort of pension are

(a) charges - Standard PRSAs cap these at 5%1% - 5% of each contribution and 1% annual management fee - but you can get 0%/1% by arranging a PRSA through certain intermediaries for a fixed one off fee - try www.labrokers.ie or [broken link removed] for example

(b) funds available and the ability to switch when necessary. If you have many years to go until retirement it is generally a good idea to invest mainly or fully in an (possibly high risk/reward) equity based fund since these would be expected to deliver the best returns in the long term. When you near retirement the fund can be gradually switched into less volatile investments as required.

(c) flexibility - the ability to stop, vary, restart contributions as required (such flexibility is generally built into PRSAs)

If in doubt consult with an independent professional advisor (e.g. an Authorised Advisor - contact [broken link removed] for a list of these - who works on a fee paying rather than commission basis perhaps) rather than depending on your bank for advice.

Check out the Pensions Board for more information and ideas on what to ask about. The AAM and IFSRA guides to savings & investments and PRSA FAQ might also be of use:

www.pensionsboard.ie
www.askaboutmoney.com/guide/index.htm
 
prsa provider

reason I was going through bank was thats who work will provide access to, and if i make prsa contribution through paye I get tax & prsi relief but if i contribute myself I can only claim tax relief ?
 
PRSA

Is it correct that you won't get a PRSI credit if you do it outside your work PRSA? I was told you could get the appropriate PRSI credit.
 
prsa provider

> reason I was going through bank was thats who work will provide access to, and if i make prsa contribution through paye I get tax & prsi relief but if i contribute myself I can only claim tax relief ?

Do you mean that your employer just happens to have appointed your bank as a PRSA provider? You are correct that if you have PRSA contributions made via payroll that you get tax and PRSI/health levy relief immediately while if you make contributions yourself to a "standalone" PRSA you will have to chase both of these up yourself. However even with a standalone PRSA you are entitled to the normal tax and PRSI/health levy relief. See here for more info: