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We have explained some of the key terms that you need to know to help you understand your PRSA pension.
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.
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.
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.
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 PRSA 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.