What is a Personal Retirement Savings Account Pension?
A Personal Retirement Savings Account (PRSA) is designed to be a flexible pension allowing you to save for your retirement as you wish. You can change the level of your contributions anytime and if you change job your PRSA can be transferred to your new employer.
Depending on your level of income, tax-relief will either be at 20% or 40%.
Age Amount which qualifies for tax relief
Under 30 years 15% of net relevant earnings
30 to 39 years 20%
40 to 49 years 25%
50 to 54 years 30%
55 to 59 years 35%
When you retire
You can take 25% of your PRSA fund as a tax free lump sum, up to a maximum of €200,000. The remainder of your PRSA fund can then be used to purchase an Annuity or invest in an Approved Retirement Fund.