PRSA or pension?

P

paulmisty

Guest
Hi all, PRSA's where to go for correct info. I'm nearly sixty, got 5yrs. work to go. Late entry to Public Sector, I've been given a PRSA to look at from my employer's contact, they are asking for €495 + 1% per annum, is this reasonable, where do you go for good info. This contact told me my TAX @41% & PRSI figures are added to get the amount they add to get the total amount which I will receive at my retirement, this will be a lump sum! Any info would be appreciated. These PRSA'a are good, if you know where to go,
Thanks
 
Best Buys - Pensions
Links and Key Posts on Pensions
www.pensionsboard.ie
www.itsyourmoney.ie
www.citizensinformation.ie

If you are retiring in 5 years time and don't expect to be rolling some or all of the pension fund into further investments (e.g. A[M]RF or the like if applicable) then you should probably be looking at investing in a conservative/low risk-reward fund to reduce the risks of volatility. In most or all cases it's not quite true to say that your pension in 5 years time will be worth 60 months of monthly contributions plus tax relief less charges. It really depends on what the money is put into. Maybe with a cash fund this would be more or less true.

Are you saying that the employer's PRSA charges €495 up front (for what!?), 0% on each contribution and a 1% annual management fee? Who is it with and what funds are available? You do get full tax (20% or 41%) and PRSI relief (up to 6% - maybe different for public sector) on your pension contributions up to the relevant age related percentage of gross income (35% in your case and 40% from the year in which you turn 60) so it is very tax efficient.
 
Hi & thanks, I'll check the paperwork ! and get back,
 
Hi again, i'm wondering will I qualify for the full state pension with a PRSA ! also are PRSA's guarenteed by the state !
Thanks
 
PRSA's are not guaranteed they have nothing to do with the state pension so won't have any affect on your state pension entitlements
 
shaking said:
PRSA's are not guaranteed they have nothing to do with the state pension so won't have any affect on your state pension entitlements
Click to expand...
Not necessarily true. They will not impact PRSI linked (contributory) pension benefits but they may well impact one's eligibility for means tested (non contributory) pensions.

paulmisty said:
Hi again, i'm wondering will I qualify for the full state pension with a PRSA ! also are PRSA's guarenteed by the state !
Thanks
Click to expand...
I suspect that you are confusing PRSAs and PRSI!
 
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