Retirement / Personal Pensions & PRSAs

Personal Pensions (or PRSAs) are for self-employed (Schedule D) earners, or those who do not wish to avail of the employer-sponsored pension scheme. The maximum funding that will receive tax-relief is:

Over 55s can now invest 35% and over 60s can invest 40%. Not many will be happy with their cash-flow situation if they are setting aside 40% of earnings for pension!

October each year is now the busy season for Lump-Sum Personal Pension contributions – and Moneywise traditionally offers discount entry costs with one or two chosen providers.

PRSA OR PERSONAL PENSION?
It’s much of a muchness. The primary difference between the two is the charging structure – so go for the contract with the lowest charges.

For the PRSA market, Moneywise only invests clients monies in Standard PRSAs, where a maximum charging structure has been imposed by legislation. It is difficult to see how the charges applied to many non-Standard PRSA contracts can be justified.

The maximum charges that can be applied to a Standard PRSA are: 5% entry charge and 1% annual management fee. If you’re there or thereabouts, there are no distinguishing differences between a PRSA and a Personal Pension.

Moneywise Financial Planning Ltd. is Regulated By The Central Bank of Ireland

Charges for Personal Pension clients of Moneywise often come in lower – both on the entry charge and the management fee. Our award-winning *Moneywise pension model acts as a guide, helping us to monitor and fine-tune on an annual basis (see sample below). * Assurelink Broker Innovation Awards 1999

For a personalised pension model, send your details to Moneywise HERE.

Note on PRSI Relief:
From January 2004, those in non-pensionable employment who have invested in a Personal Pensions or a PRSA qualify for tax relief on their PRSI as well as PAYE. Simply send a statement from your pension provider and a P60 (in January 2005) to: PRSI Refunds Section, Sarsfield House, Francis Street,
Limerick. Tel. 1890 203070

PAYE tax-relief is claimed by writing to your unit in Revenue.

Warning: These figures are estimates only. They are not a reliable guide to the future performance of this investment