Home Services Financial Advisory Services Retirement Planning Personal Retirement Savings Account (PRSA)

 

Personal Retirement Savings Account (PRSA)

A PRSA can be summarised as follows:

  • It is a personal pension plan that can be taken out with an authorised PRSA provider.
  • It is a tax-free structure that facilitates saving and investing for retirement.
  • It is a type of defined contribution scheme where the holder can make regular contributions to it, which are tax deductible, the amount of tax relief available is dependent on the holder’s age and their level of relevant earnings.
  • It is a flexible pension structure that allows the holder to increase, decrease or stop their contributions at any time without any charge or penalty for doing so.
  • It is a portable pension structure that can be carried from job to job or transferred to another PRSA provider, without any charge or penalty for doing so.
  • It is a type of personal pension plan that gives the holder significant flexibility in drawing down benefits, including the facility to continue making contributions while drawing benefits.
  • It facilitates both personal contributions and employer contributions. The total contribution limits are influenced by age and are a percentage of net relevant earnings, up to an “earnings ceiling” of €115,000 as illustrated below.
Age % of relevant earnings eligible for tax relief

Under 30 years

15%

30 – 39 years

20%

40 – 49 years

25%

50 – 54 years

30%

55 – 59 years

35%

60 years and over

40%