Personal Retirement Savings Accounts

A Personal Retirement Savings Account (PRSA) is a flexible, tax-efficient savings account designed to help you to save your retirement.

PRSAs offer tax relief on contributions and the growth achieved by your investments is tax-free. PRSAs are available to anyone regardless of their employment status.

There are two types of PRSAs available:
  • Standard PRSAs: these have a maximum fund management charge of 1% and a maximum contribution charge of 5% but have restrictions on the types of funds you can invest in.
  • Non-Standard PRSAs: these don’t have limits on charges but may have a wider choice of funds including guaranteed funds.

  • Monthly contribution to your PRSA qualifies for Income Tax relief at your marginal tax rate, however there are limits to the Income Tax relief you can receive.

    The PRSA you decide to invest in should offer you a diversified range of investment options that can meet your changing circumstances over time. Any choice you make should be based on your financial goals and should take into your account the level of risk you are comfortable with.

    You can start a PRSA by investing as little as €25 per month, however, there are a number of things you should consider before deciding on your monthly contribution. These include, your age and the age you’d like to retire at, the length of time to your retirement and your existing income.

    Farrelly Financial can guide you through the process of setting up your PRSA and help you make sense of charges, tax benefits, and investment options.