PRSA Transfer

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Radiowriter

Registered User
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Hi,

I have two PRSA accounts. One is a monthly contribution which I'm happy with - the second has a lump sum of €9,600 which I'm not contributing to.

The return after 25 years on the €9,600 is €32,400. I feel this is quite low.

Any suggestions where I could move the lump sum for the same period that would give a better return?

Thanks.
 
Radiowriter said:
The return after 25 years on the €9,600 is €32,400. I feel this is quite low.
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PRSAs have not been around for 25 years so I presume that you're referring to some sort of projection here? Bear in mind that such projections are simply illustrative and based on assumed growth rates that have no relevance to what may actually transpire.
Any suggestions where I could move the lump sum for the same period that would give a better return?
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Nobody can predict the future. All you can do is minimise charges and pick a fund that best suits your specific needs.
 
The assumed growth rate used to get from €9,600 to €32,400 after 25 years is somewhere around 5% per year. I'm therefore guessing that the projection you've been looking at assumes 6% future annual fund growth and then deducts the 1% annual fund management charge.

The industry standard for projections of this sort is 6% so any projection from any PRSA provider you look at will probably have a similar projected return assuming it's a Standard PRSA projection you're looking at. They all assume 6% annual growth as this has been accepted as a "reasonable" assumption, so as not to give anyone an unrealistic expectation.

As Clubman points out, the reality may be higher or lower.

Liam D. Ferguson
www.ferga.com
 
Hi Guys,

Thanks for the advice.

Clubman you quote 'PRSAs have not been around for 25 years so I presume that you're referring to some sort of projection here?'


From the provider website - Personal Retirement Savings Account (PRSAs) are a new type of pension which have just been launched into the Irish market.

Thanks anyhow.
 
Radiowriter said:
Clubman you quote 'PRSAs have not been around for 25 years so I presume that you're referring to some sort of projection here?'

From the provider website - Personal Retirement Savings Account (PRSAs) are a new type of pension which have just been launched into the Irish market.
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Sorry - I don't get your point. :confused:
 
You originally spoke of the return over 25 years on your PRSA. I simply pointed out that since PRSAs have not been around for 25 years that this must be a projection rather than a statement. Other than that I don't really know what you're on about. Maybe you are confused.
 
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