A Personal Retirement Savings Account is another type of Personal Pension suitable for employed individuals that do not have access to a company pension arrangement. All employers must offer a facility to their employees, whereby they have reasonable access to at least one PRSA provider.
Benefits of a PRSA:
- The contributor will get tax relief at his/her higher income tax rate of either 20% or 40%.
- The contributor can contribute on a monthly basis by personal direct debit or intermittently by means of a lump sum contribution to avail of tax relief, as per current revenue guidelines.
- The growth in the fund will be completely tax free.
- You can access 25% of your fund tax free anytime from age 60.
- If you join an company pension scheme, you can transfer 100% of your PRSA into the scheme.
- Your employer may contribute into you PRSA to further enhance the growth of your retirement fund.