How is my money invested?
Our Lifestyle Extra PRSA gives you 8 different investment options.
So you can prioritise investing in your comfort zone, we offer 6 ExpertEase funds. These multi-asset investment strategies help you personalise your investment to match your attitude to risk.
We also offer the KBC Lifestyle Cash Fund - our most defensive investment strategy that provides very modest returns.
Or you can choose MyAutoinvest instead. This is our default investment strategy and means you don’t have to make any investment decisions on an ongoing basis. Your money is invested to suit your life stage and the remaining term to your chosen retirement date. If you’ve a while to go to retirement, your money is invested in higher risk assets for potentially higher returns. But as you move closer to retirement, we move your money into lower risk investments.
Keep on track with your phone
Control everything with a tap in app. Set your retirement goal and track it. Check in on your fund balance or pension performance any time.
You can make additional top-ups, increase, decrease or even pause your contributions.
The app is also home to all of your documents, including your 6-monthly and annual statements.
How do I make the most of my tax savings?
You can claim tax relief on your contributions at your current rate of income tax. It’s worth noting that the maximum contributions you can claim tax on depend on your age. This table is a handy guide.
||% of Net Relevant Earnings
|30 - 39
|60 and over
When calculating tax relief, there’s a maximum earning of €115,000 per year that can be taken into account.
Please note: contribution tax relief isn’t automatically guaranteed and is determined by the Revenue Commissioners, not KBC.
What happens when I retire?
Most people draw down their pension between 60 and 75 (there are some early retirement exceptions based on ill health or certain occupations). You can take up to 25% of your pension fund as a lump sum and up to €200,000 of this lump sum may be tax free (subject to overall Revenue limits). This handy table explains what happens for different amounts.
|Up to €200,000
|€200,001 to €500,000
||Standard rate of 20%
||Your marginal rate of tax and subject to USC.
You may have a number of other options available so when the time comes, we’ll help you decide what works for you.
What is Comfort Zone Investing?
It’s all about making your money work hard for you while keeping you comfortable, regardless of market conditions. When you stay in your comfort zone, you’re less likely to make choice you might regret later.
We see your Comfort Zone as having three dimensions:
- Upside potential: This is the reason we all invest – to achieve the best possible return!
- Downside risk: We all know the value of investments can fluctuate. But we don’t all feel the same about losses – our comfort zones are different. If you suffer a loss outside of your comfort zone, you may turn your back on the market at the wrong time. We want to avoid this.
- Time horizon: Your PRSA is a medium to long term investment. This means your chosen investment strategy usually has a reasonable chance to make good any losses along with way.
Which fund should I invest in?
We’ve got your back on this one and will do the hard work for you. We’ll ask you a few financial questions to learn about your risk attitude and tolerance, your financial knowledge and to see how you feel about uncertainty. Then we can identify your risk profile, which is made up of two parts:
Your Investor Profile:
Your Loss Tolerance:
- Very Defensive
- Very Dynamic
We can then recommend the most suitable ExpertEase fund for your comfort zone, and we’ll also show you funds of similar risk levels. You’re involved without dedicating lots of time to picking and managing your funds – we’ll take care of that for you.
We know that your attitude to risk or your financial situation can change at any time, so you’re free to switch your fund in-app at any stage, at no extra cost.
How the ExpertEase Investment Strategy works
Each ExpertEase fund is built with three main blocks of balanced funds. Each block corresponds to an ‘investment signal’ that determines what percentage is allocated to equity, bonds and other assets (like cash or real estate). The weighting for each block/signal varies, differentiating the level of risk for each fund.
Each of our three signals or blocks strikes their own individual balance between upside potential and risk of loss. So each will behave differently within the same markets conditions. Here’s more about the signals:
- Fundamental analysis: Follows the KBC investment strategy and so is based on views taken by our economists and analysts on economic trends and outlook. Develops an optimum allocation of equity, bonds, cash etc. for each profile.
- Trend signal: Seeks out trends in the recent performance of equity and bonds on a continuous basis. Builds up positions in the best-performing assets and reduces them in weaker ones.
- Brake signal: Normally, this signal points to investing in equity and bonds in line with your risk profile. However, if the markets falls or it’s nervous, this will indicate a need to be more cautious and replace risky assets with less risky ones.
Essentially, each signal strikes its own balance between upside potential and risk of loss. They can be invested differently under the same circumstances and may react differently to changing market conditions.
Tell me about the charges
There’s a contribution charge of 2.5% on each contribution you make. However, the good news is that this charge doesn’t apply to pension transfers into your KBC Lifestyle Extra PRSA.
The annual fund management charge for these portfolios ranges from 0.5% - 1.45% of the value of your PRSA. It’s calculated on a daily basis and reflected in your fund value.
||Annual Fund Management Charge
|ExpertEase Careful Defence
|ExpertEase Balanced Defence
|ExpertEase Progressive Defence
|ExpertEase Balanced Approach
|ExpertEase Progressive Approach
|ExpertEase Progressive Opportunity
|KBC Lifestyle Cash
Pensions can seem complex, but they don’t have to be. We’ve answered some of the most-asked questions to make your retirement planning that little bit easier.
Check out our Pensions 101 guide for the ultimate crash course! Then have a look at our Pensions Journey Roadmap and our Help Hub for useful resources like videos and blogs.