PRSA Explained

What is a PRSA?

A PRSA is an investment account for retirement savings, funded by employer or personal contributions, or transfers from other pensions (e.g., occupational pensions).

PRSAs are special because you're free to switch to a different provider at any time. When switching, you simply move all your PRSA funds from your current provider to the new provider. Like switching utility providers, this can help you save money on fees, get better service, and access investment options that best suit your needs.

PRSA fees

PRSA fees come in two main parts:

• Contribution Charge: An upfront fee deducted from contributions (e.g., 5%). 'Allocation' refers to the remaining amount (e.g., 95%).
• Annual Charge: An annual fee based on your pension fund’s total value (also called the 'Fund' charge).

Standard PRSAs have legal fee caps (max 5% on contributions, 1% annually). Non-Standard PRSAs have no caps.

Use our PRSA fee comparison tool to see how different fee structures could impact your retirement savings over time.

Curated and Brokerage PRSAs

Some PRSAs offer you a curated selection of products to invest in (typically 10-20 options). On PensionCheck.ie, we refer to these as "Curated" PRSAs.

Other PRSAs offer you thousands of investment options via a stock brokerage account. On PensionCheck.ie, we refer to these as "Brokerage" PRSAs. Brokerage PRSAs typically come with additional stockbroking fees.

Tax Benefits

PRSAs offer several tax advantages:

• Tax relief on contributions at your combined marginal rate of income tax
• Tax-free growth on investments within the PRSA
• 25% tax-free lump sum at retirement (within limits)

Accessing Your PRSA

You can access your PRSA from age 60 (age 50 if retired) and:

• Take a tax-free lump sum (within limits)
• Purchase an annuity (a guaranteed income for life)
• Invest in an Approved Retirement Fund (ARF)
• Take a taxable lump sum

Read the Pensions Authority guide for more details.