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Personal Pension Plan

A personal pension plan is a private pension policy that is managed for you by a life assurance company or investment firm. Anyone who is self-employed or who earns an income but who can't join an employer pension arrangement can start a personal pension plan.

If you are a PAYE employee and a member of an occupational pension scheme but also earn money somewhere else, you may be able to contribute to a personal pension plan based on these earnings.

You can take your benefits at 60. You can continue working and contributing if you want, and delay taking benefits up to age 75.

Personal Retirement Savings Account (PRSA)

A Personal Retirement Savings Account (PRSA) is another type of personal pension policy. Anyone up to the age of 75 can invest in out a PRSA and you don't have to be earning an income to do so.

There are two types of PRSA contracts available as regulated by the Pensions Board. These are known as Standard and Non-Standard PRSAs. The Standard PRSA have a maximum charge on contributions that you can be charged of 5% and 1% a year on managed funds (although it should be noted that one can only invest in pooled funds, except for temporary cash holdings).

The Non-Standard PRSA has no limits on charges but you can invest in a wider range of funds and not just pooled funds.

If you are employed, by law your employer must offer you what is called a Standard PRSA if:

  • there is no employer pension scheme plan in place
  • you are not eligible to join your employer pension plan within the first six months of your service
  • you are only eligible to join your personal pension plan for death-in-service benefits but not for pension provision

Age 50 if you are an employee and retiring from that employment.

Age 60 for others, such as self employed or not earning an income. You can continue working and contributing if you want, and delay taking benefits up to age 75.

 

Articles

The following article may be useful resource to assit you and your loved ones in developing your retirement plan and creating a secure and safe future for you and your family.

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