PRSA’s for Employees
Why should I plan for my retirement?
When you retire, you’ll expect to maintain the
same standard of living, yet have more time to
spend with your family, pursue leisure activities
and so on. Research shows that we are now
living much longer. This means we will need more
income for a longer retirement.
Would the State Pension (Contributory) for a
single person, of currently €233.30 per week
(increasing to €238.30 on 1st March 2017), be
enough for you to maintain your existing standard
of living? If that’s the only income you have when
you retire, it will certainly mean a big fall in your
standard of living. Not a nice thought, but one we
all need to consider. Added to this is the concern
that the State Pension will not be paid until age 68
for people born on or after 1st January 1961.
A PRSA (Personal Retirement Savings Account)
provides you with the opportunity to plan wisely
for your retirement.
Am I eligible to take out a PRSA?
If you are employed full-time, part-time, or even
participating in a job share, you may take advantage
of your employer’s Group PRSA arrangement
provided you are not already in a company
pension scheme. If you are already included in your
employer’s occupational pension scheme you may
only take out an Additional Voluntary Contribution
PRSA, subject to your scheme rules.
How flexible is a PRSA?
A PRSA is very flexible – you can start off by putting
a little aside and then as your income grows so too
can the amount you save. As well as increasing your
contributions, you can also decrease them at times
when you aren’t as financially well off. You can even
stop your payments and then restart them at a more
In addition, you can also make lump sum payments if
you wish to boost your PRSA.
What are the benefits of joining
my employer’s Group PRSA
- Pay less tax – you can avail of generous tax
relief on your contributions, tax free growth on
your investment and a retirement lump sum of
which some or all may be taken tax free.
- A wide range of investment options – You can
choose the fund or combination of funds which
best suit your needs.
- Convenience – Your employer will make the
deductions from your salary/wages and forward
them to your PRSA provider for investment. The
amount deducted from your salary for your PRSA
contribution will appear on your payslip.
- Employer contributions – If your employer has
committed to making contributions to your Group
PRSA account, this will help boost your retirement
- Ownership – Your PRSA is personal to you and will
remain your asset even if you change employment.