Skip to Content

PRSA video transcript

Overview

This page contains a transcript of our video on PRSAs, or Pensonal Pensions. The video features TV presenter and Financial Planner Eoin McGee.

Transcript

It is nice to have choices in life, but sometimes lots of options make it harder to make a decision, especially if you’re not quite sure what you’re getting. When it comes to pensions, it’s worth understanding what you’re getting before you decide what you’re going to choose.

If you are self‑employed or a PAYE worker with an employer who does not have a pension scheme, then a PRSA is a choice you need to know about.

PRSA stands for Personal Retirement Savings Account.

  • Personal – it relates to you as a person rather than being linked to your job retirement. It is a pension plan.
  • Savings – you’re putting money away in an account which holds the money now for you to spend in the future.

They’re sold by a financial company, for example an insurance company, and you will pay fees to the company for managing your PRSA. If you are a PAYE worker and don’t have a pension scheme at work, then your employer is required to offer you access to a PRSA and facilitate you in paying into it directly from your salary.

So what kind of pension plan is a PRSA?

If you want a pension that’s not fixed or tied to your job, a PRSA suits because it’s portable. If you switch jobs, you can take it with you. If you want a pension that allows you to decide how much and how often you want to contribute, a PRSA works. You can make regular payments, or you can ramp them up or reduce them. A PRSA strategy is flexible.

There is tax relief available on PRSA contributions to encourage you to save for retirement.

Your employer can give you the benefit of the tax relief in your pay packet. They can deduct your PRSA contributions from your gross pay, or you can claim it directly from Revenue when you reach retirement age.

With your PRSA fund, it’s time for more choices and more decisions. Just like with any other pension, it’s nice to have choices in life, and if you’ve planned ahead, then all of your options should be good ones.

Sign up for the latest news from CCPC