PRSA set up advice

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banchang

Registered User
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Hi

I’m looking to help my 27yo son set up a PRSA for himself initially with a lump sum & thereafter for him to contribute to monthly. He is employed but no company pension arrangements for him. Is there an ‘idiots starter guide’ here for this, to include best options an available, what to look out for, & tax benefits ? Help appreciated.
 
Probably a good idea to walk him through this Flowchart first to make sure he's doing the right thing, right now.

If he is, then don't wait for the 'It's On the Way Since...' AE. He can change later if it suits.

A Google of PRSA Brochure (inset name of pension company) will give you the basics. Or , a Preliminary Disclosure Certificate from any provider may also be useful.

After that it's probably down to funds and costs.
 
I think we're at the stage of looking at funds & costs - what are the key things to look out for there ? Obviously we want the lowest cost possible but would like to understand the things to look out for. TIA
 
banchang said:
I think we're at the stage of looking at funds & costs - what are the key things to look out for there ? Obviously we want the lowest cost possible but would like to understand the things to look out for. TIA
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When it comes to costs look for Total Expense Ratio (TER) as this is the total of costs, both explicit and implicit and is the best comparison to use between providers.
 
TRS30 said:
When it comes to costs look for Total Expense Ratio (TER) as this is the total of costs, both explicit and implicit and is the best comparison to use between providers.
Click to expand...
Do all providers quote the TER though?
Is it mandatory these days?
 
I have seen a TER list covering funds from different providers. While TER is very relevant & an important decision point, I’m also interested in what to look out for in terms of actual transaction/annual costs to the individual: which funds provide the lowest cost in that regard.
 
banchang said:
I have seen a TER list covering funds from different providers. While TER is very relevant & an important decision point, I’m also interested in what to look out for in terms of actual transaction/annual costs
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Surely the whole point of the TER is to reflect those and all other charges?

Charges are important but don't make the mistake of trying to micromanage your pension.
 
banchang said:
I have seen a TER list covering funds from different providers. While TER is very relevant & an important decision point, I’m also interested in what to look out for in terms of actual transaction/annual costs to the individual: which funds provide the lowest cost in that regard.
Click to expand...
Any charges that universally applied, i.e. you can't avoid them have to be included in the TER. However, if there is a one off cost for say switching, amending a withdrawal etc then this could be quoted separately.

As I said previously, costs is only one aspect to look at.
 
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