Why invest in a pension?
Pensions remain the most tax-efficient investment vehicle in Ireland. Contributing to a pension plan allows you to reduce your taxable income, grow your savings tax-free, and potentially withdraw a portion of your funds as a tax-free lump sum upon retirement.
However, to maximise these benefits, it’s crucial that your pension plan is tailored to your needs. At Rockwell, we take the guesswork out of the process. From selecting the right PRSA or pension plan to crafting an investment strategy that balances reward and risk, we ensure your retirement savings are optimised.
Planning for retirement is one of the most important financial steps you can take, and a Personal Retirement Savings Account (PRSA) is a flexible and tax-efficient way to build your retirement savings.
There are two types of PRSA. A Standard and a Non Standard PRSA. The main difference is the level of charges applied and the range of investment options available under a Non Standard PRSA.
A PRSA functions similarly to other pension plans, offering significant tax benefits on contributions. However, it stands out for its transferability—a feature that allows you to maintain the same PRSA if you move from self-employment to a company director role or employment. This flexibility makes PRSAs particularly attractive for individuals with evolving career paths.
Key Features of a PRSA:
- Transferability: Ideal for those who may change jobs or employment status throughout their careers.
- Retirement Options: PRSAs offer similar retirement benefits to traditional pensions but lack the salary-and-service tax-free lump sum option available in company pensions.
- Simplified Charges and Fund Choices: PRSAs often have fewer options for charges and investment funds compared to other pensions. This simplicity can be both an advantage and a limitation, depending on your financial goals.
- Flexible Contributions: You can pay regular contributions, increase, decrease or take a contribution holiday if the need arises. You can also make single contributions up to Revenue limits.
Given these features, professional advice is highly recommended to ensure that a PRSA—or any pension product—is the best fit for your unique circumstances.
Who Can Get a PRSA?
PRSAs are designed to be accessible to a wide audience, making them a great option for individuals without other pension arrangements. Employers are legally required to provide access to a PRSA in the following scenarios:
- If they do not offer an occupational pension scheme.
- If an employee is not eligible to join the company pension scheme within six months of starting their job.
This inclusivity ensures that even those who might otherwise lack retirement savings options can start building their financial future.
Benefits of a PRSA:
- Tax Relief on Contributions: Reduce your taxable income by saving for retirement.
- Tax-Free Growth: Enjoy the compounded benefits of tax-free investment growth within your PRSA.
- Tax-Free Lump Sum at Retirement: Withdraw up to 25% of your fund as a tax-free lump sum (up to €200,000 limit).
Let Rockwell Help You Plan for Your Future
Investing in a pension can feel complex, but it doesn’t have to be. At Rockwell, we’re here to simplify the process and guide you every step of the way. Whether you’re self-employed, a company director, or an employee, we’ll ensure your PRSA or pension plan aligns with your financial goals and retirement aspirations.
Start prioritising your pension today—because your future is worth it.
Take Control of Your Pension
A pension remains one of the most tax-efficient ways to save and invest in Ireland. However, setting it up correctly is essential to maximising its value.
At Rockwell, we make pension planning effortless. From crafting the right investment strategy to balancing risk and reward, we handle all the complexities for you. Our goal is to help you optimise you hard-earned savings and make confident decisions about your retirement.
Let us simplify the process and create a retirement plan that’s clear, efficient, and tailored to your needs.
Book a Complimentary Consultation today and start your journey to a better retirement. (Contact form)
Take Control of Your Pension
A pension remains one of the most tax-efficient ways to save and invest in Ireland. However, setting it up correctly is essential to maximising its value.
At Rockwell, we make pension planning effortless. From crafting the right investment strategy to balancing risk and reward, we handle all the complexities for you. Our goal is to help you optimise you hard-earned savings and make confident decisions about your retirement.
Let us simplify the process and create a retirement plan that’s clear, efficient, and tailored to your needs.
Book a Complimentary Consultation today and start your journey to a better retirement. (Contact form)
Frequently Asked Questions
What happens if I move abroad after setting up a PRB?
If you have move abroad, your PRB remains intact and under your control. PRBs are highly flexible, and your savings can continue to grow regardless of your location. At retirement, you can access the funds just as you would if you remained in Ireland, though taxation on withdrawals will depend on both Irish tax laws and the tax regulations in your new country of residence. We recommend consulting with a tax advisor to understand any implications of accessing your PRB while living abroad.
Can I transfer multiple pensions into one PRB?
Typically, each pension scheme is transferred into its own PRB. This is because PRBs are designed the reflect the specific benefits accrued in each individual pension scheme. However, you manage multiple PRBs as part of your overall retirement planning strategy. If consolidation is a priority for you, we can explore other pension options that might align better with your goals.
Looking to get up to date information on pensions from previous? We are here to hep.
You can take control of pensions from jobs you left years ago. With just a few key details, we can help track down your old pensions and get them working harder for you.
