Our digital pension experience has been designed with the help of our customers.

You told us what you need to know to make planning for retirement easier so here we will answer some of those questions and hopefully take some of the confusion out of planning for your retirement.
 


Plain English Pensions

Plain English Pensions

Videos

Videos

FAQs

FAQs

We explain some of those acronyms you see popping up around Pensions

Personal Retirement Savings Account (PRSA)
A Personal Retirement Savings Account (PRSA) is a long term pension plan that allows you to save for  your retirement. It helps you have the future you deserve when you hang up your work boots.

Contribution
This is the amount that you are putting into your pension plan. You should make regular contributions to your pension plan to ensure that you have the savings you need for your retirement. With the KBC  Lifestyle PRSA you can increase, decrease or pause contributions while reviewing their fund performance in real-time.

MyAutoinvest – Designed for everyone, built for you 
A PRSA is required to have a default investment strategy. We have designed our investment strategy around you and your chosen retirement age, to make sure that the right choices are made at the right time.

MyAutoinvest from KBC gradually changes how your pension savings are invested as you approach retirement.

We gradually reduce your exposure to more risky (but potentially higher performing) equities and increase your exposure to less risky assets (bonds and cash) as you move towards your chosen retirement age -  this is called de-risking.
 
Once you set up your KBC Lifestyle PRSA, de-risking begins straight away and accelerates once you reach 20 years to your chosen retirement age. In the last 5 years before your chosen retirement age, we will move a portion of your pension savings to cash funds so that you will have 25% invested in KBC cash funds at your chosen retirement age.

Preliminary Disclosure Certificate
A Preliminary Disclosure Certificate is designed to highlight some important details about your PRSA and is a guide to help you understand your policy. You should read this document carefully as it outlines some important information such as your retirement benefits, your investment strategy, tax benefits and any risks associated with your pensions.


Tax Relief – Make the most of your tax savings
Contributions you make into your PRSA are generally tax deductible up to certain limits. Tax Relief on a PRSA is not guaranteed as this is subject to meeting Revenue requirements. 

You can claim tax relief up to the relevant age-related percentage limit of your earnings, in any year and at your prevailing rate of income tax. Tax relief is granted at the higher percentage band if you reach that age at any time during the calendar year in question.
Age Bracket % of Earnings
Under 30 15%
30 - 39 20%
40-49 25%
50-54 30%
55-59 35%
60 and over 40%

The maximum amount of earnings taken into account for calculating tax relief is €115,000 per year. Note: contribution tax relief is not automatically guaranteed and is determined by the Revenue Commissioners, not KBC.
 
Access to Funds
Typically, people draw down their pension between the age of 60 and 75 (there are some exceptions for early retirement based on ill health or certain occupations).
 
Retirement Lump Sum

You can take up to 25% of your pension fund as a retirement lump sum. Up to €200,000 of your retirement lump sum may be tax free (subject to overall Revenue limits). Amounts over €200,000 are liable for income tax as outlined below.
 
Up to €200,000 Tax Free
€200,001 to €500,000 Standard rate of 20%
Over €500,000 Your marginal rate of tax and subject to USC.
 
The remainder of your money can stay invested and be withdrawn as you need it. You may also have a number of other options available with the balance of your fund. When the time comes, we can help you decide what’s best for you.

Setting up a KBC Pension

Top 5 Things You Need To Know About A KBC Pension

Pension Goals

We've put together a list of handy FAQs to answer your questions.

How much do I need in retirement?

Your pension may be your main income source once you retire so you should plan based on how you want to live once you have retired.

You can use our pension calculator to illustrate how much income you may get in retirement from your pension savings.

Having your own pension plan is important as the maximum single Contributory State Pension is currently €12,956.60 a year*.

You must also meet all the requirements to be eligible to receive the State pension. The State pension alone may not be enough to fund your lifestyle in retirement.

*As at March 2019.

What tax relief is available on my contributions?

There are no limits to contributions you can make to your KBC Lifestyle PRSA, however there is a cap on the amount of tax relief that can be claimed. These are prescribed in accordance with legislation.

You may claim tax relief on a percentage of your salary (up to an earnings cap of €115,000 per year), determined by your age at the end of the relevant tax year (see table below).
Age in tax year Tax Relief Limit of Net Relevant Earnings

Age Bracket % of Earnings
Under 30 15%
30 - 39 20%
40-49 25%
50-54 30%
55-59 35%
60 and over 40%

You can claim tax relief on your contributions at your marginal rate of income tax (either 20% or 40%). There is no PRSI or USC relief.

For example, a 42 year old earning €50,000 a year may claim income tax relief on contributions of up to 25% of their salary - €12,500. This individual may claim tax relief at 40% (their prevailing income tax rate) on this €12,500 contribution i.e. €5,000, reducing the cost of the contribution to €7,500.

You are entitled to tax relief on a PRSA contribution of up to €1,525 per annum even if exceeds the normal age-related and income based limits. These limits include any contributions you are making to other pension arrangements. Tax relief is not automatically granted and Revenue requirements must be met. Tax relief is not calculated at source, but may be claimed from Revenue.

What funds can I invest in?

The KBC Lifestyle PRSA invests your retirement savings in what we call 'MyAutoinvest'.

This is an investment strategy that automatically reduces your exposure to risk as you approach retirement. This is called de-risking, and is designed to cater for the needs of pension savers of all ages. When your retirement is far away, more of your money will be invested in equities, as equity funds have the potential to achieve greater growth over the long term. As you move closer to retirement, MyAutoinvest will gradually move more of your fund to lower risk assets like bonds and cash.

The MyAutoinvest strategy consists of a balance of equity, bond and cash funds. Each month, we do two things for you: 1. We automatically move some of your savings from equities to bonds. In the last 5 years before you retire, we will move money into our cash funds too. 2. We rebalance your investment allocation to ensure that your policy is in line with the target asset allocation for your term to retirement.

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