Zurich Master Trust or PRSA

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BikeShed

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I'm 35, working as a contractor and set up as an umbrella director. My income will be between €220,000 - €250,000 in 2025.

I'm looking to maximise my pension contributions to reduce my higher rate of tax for the year. I plan to stay working like this for another 5 years and then eventually go back to permanent employment.

I would like to access 25% of my pension when I'm about 50-55.

Can anyone recommend whether I'm better off with a Zurich PRSA or Master Trust Pension? What are the pros and cons? I currently have a Master Trust set up and I don't really understand the difference between them.

Thanks in advance.
 
BikeShed said:
I'm 35, working as a contractor and set up as an umbrella director. My income will be between €220,000 - €250,000 in 2025.

I'm looking to maximise my pension contributions to reduce my higher rate of tax for the year. I plan to stay working like this for another 5 years and then eventually go back to permanent employment.

I would like to access 25% of my pension when I'm about 50-55.

Can anyone recommend whether I'm better off with a Zurich PRSA or Master Trust Pension? What are the pros and cons? I currently have a Master Trust set up and I don't really understand the difference between them.

Thanks in advance.
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You have to go with a Master Trust. To access a PRSA before age 60, you have to have retired. That is not the case with a Master Trust, you just have to have left employment.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Steven Barrett said:
You have to go with a Master Trust. To access a PRSA before age 60, you have to have retired. That is not the case with a Master Trust, you just have to have left employment.
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But in the former case you just sign a declaration that you're finished working but, as far as I know, it's not strictly binding and you could still go back to some form of paid work if you choose? That's what I've done to access some of my PRSA at age 58 although, right now, I have no specific plans to renege on my declaration of retirement and return to work.
 
ClubMan said:
But in the former case you just sign a declaration that you're finished working but, as far as I know, it's not strictly binding and you could still go back to some form of paid work if you choose? That's what I've done to access some of my PRSA at age 58 although, right now, I have no specific plans to renege on my declaration of retirement and return to work.
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It is something the Revenue can check easily enough and enforce. Under a MT, there is no issue at all.
 
Enforce how? Force you to stop working? I presume that they can't do that? Or, perhaps, claw back tax relief on any lump sum taken?

I was advised that it's was just a formality and didn't actually prevent me from working again later if I decided to do so not would there be any problem if I did.

At the moment it's moot since I have no plans to do so but I'd like to know that I could if I changed my mind.
 
People retire and then, for one reason or another, decide to take up another job later in life. Boredom is one reason. Lending their skills and experience to a friend's business is another. An exciting opportunity is another. PRSA early retirement (50 - 59) rules specify that you must be retiring from all employments at that time. There's nothing in the rules to say that you must never work again.
 
BikeShed said:
I'm 35, working as a contractor and set up as an umbrella director. My income will be between €220,000 - €250,000 in 2025.

I'm looking to maximise my pension contributions to reduce my higher rate of tax for the year. I plan to stay working like this for another 5 years and then eventually go back to permanent employment.

I would like to access 25% of my pension when I'm about 50-55.

Can anyone recommend whether I'm better off with a Zurich PRSA or Master Trust Pension? What are the pros and cons? I currently have a Master Trust set up and I don't really understand the difference between them.

Thanks in advance.
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I wrote this last November. You might it useful in comparing the two. https://ferga.com/latest-news/f/differences-between-a-master-trust-and-a-prsa
 
LDFerguson said:
People retire and then, for one reason or another, decide to take up another job later in life. Boredom is one reason. Lending their skills and experience to a friend's business is another. An exciting opportunity is another. PRSA early retirement (50 - 59) rules specify that you must be retiring from all employments at that time. There's nothing in the rules to say that you must never work again.
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Thanks a lot @LDFerguson.
 
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