Personal retirement savings accounts (PRSAs) JAN 2025
A personal retirement savings account (PRSA) is an account you can use to save for your retirement. It is an investment account because you can invest your savings in various investment funds through your account. You can make regular payments or lump sum payments to your PRSA, and these are usually tax deductible. You don’t pay tax on any investment gains but you might end up paying tax on the retirement benefits you get from your PRSA. You can take out a PRSA with an authorised PRSA provider.
A PRSA provides benefits at retirement based on the amount of payments or ‘contributions’ you have paid in and the investment returns earned on those contributions.
PRSAs are available to you regardless of your job or employment status. You can take out a PRSA if you are a part-time or casual employee, a highly paid professional, self-employed, a homemaker, a carer, a jobseeker, a contractor, an employer, an employee or a partner in a partnership.
PRSAs are flexible; you can increase, decrease or stop your contributions at any time without any charge or penalty. PRSAs are portable; you can carry your PRSA from job to job or transfer it to another PRSA provider without any charge or penalty.
If your employer does not provide you with access to an occupational pension scheme or if certain restrictions apply to their scheme, then you must be provided with access to a standard PRSA.
Contributions
Contributions can be made on a regular basis (monthly, quarterly, half-yearly or yearly) or on a once-off basis. All PRSAs with a monthly payment frequency must be paid by direct debit.
Regular contributions can be either fixed or variable*, although not all variations are available to both types of contributions. Where contributions are made on a regular basis, additional single contribution injections may be made at any stage.
* Variable contributions apply to salary deduction schemes where employees are paid weekly, fortnightly or four weekly and to
employees paid monthly whose contributions are expressed as a percentage of salary.
All contributions must be paid to Zurich Life on a monthly basis. Bonus allocations do not apply to variable contributions,
because they are part of a group. Initial commission is not paid on contribution increases on variable contribution variations
Minimum Contributions
Minimum contribution for any payment by electronic transfer (including direct debit): €10 Minimum contribution for payment received by any other means: €50 Age at Entry
Minimum: 18 next birthday
Maximum: 2 years before selected retirement age
Retirement Age
Minimum: 60
Maximum: 75
Investment Strategy
The Default Investment Strategy varies depending on whether the client has indicated that he or she
wishes to purchase an annuity or invest in an Approved Retirement Fund (ARF)
Annuity
Number of years to retirement Fund that contributions are invested in 25 or more Dynamic fund
15 or more, but less than 25 Performance fund
5 or more, but less than 15 Balanced fund
Less than 5 Active Fixed Income fund
Five years before the selected retirement date, monies invested in the Dynamic, Performance and Balanced funds will be gradually
switched into the Active Fixed Income fund.
ARF
Number of years to retirement Fund that contributions are invested in 25 or more Dynamic fund 15 or more, but less than 25 Performance fund Less than 15 Balanced fund
Five years before the selected retirement date, monies invested in the Dynamic and Performance funds will be gradually switched into the Balanced fund.
Alternatively for clients who do not wish to use the Default Investment Strategy, the following
Matrix funds are available:
• 55 Global • International Equity • Cautiously Managed
• 55 Europe • Dividend Growth • Active Fixed Income
• 55 Asia Pacific • Dynamic • Long Bond
• 55 Americas • Performance • Secure
• Eurozone Equity • Balanced
Switches and Redirections
A client can make four free switches and four free contribution redirections per year; there is a fee of
€20 for every switch or redirection after the fourth.
Indexation
Where indexation has been selected, at each anniversary date the contribution is increased by the annual percentage increase in the Consumer Price Index, subject to a minimum of 5% per annum, or such higher rate as Zurich Life may offer.
PRSA Information and Application
LABrokers.ie ®
Newcastle,
Greystones,
Co. Wicklow.
Phone: 01 281 0577
E mail: info@LABrokers.ie
Web site: www.LABrokers.ie
LABrokers Limited, trading as LABrokers (‘the firm’) (Ref: No 38864) is regulated by the Central Bank of Ireland.
We contribute to the Investor Compensation Scheme, in accordance with the Investor Compensation Act 1998.
LABrokers Limited. Registered in Ireland No 303231. Registered Office LABrokers, Newcastle, Greystones, Co Wicklow.
LABrokers Limited have not provided you with a personal recommendation as to whether this product is suitable for your specific needs.
E&OE.