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PRSA Pension

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  • 16-11-2013 12:06pm
    #1
    gozunda
    Registered Users Posts: 18,996 ✭✭✭✭


    Recently been advised that PRSAs are not a particularly good pension option anymore

    Any thoughts on this?


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    #2
    Eoin0603
    Registered Users Posts: 29 ✭Eoin0603


    gozunda wrote: »
    Recently been advised that PRSAs are not a particularly good pension option anymore

    Any thoughts on this?


    I certainly don't agree with the statement in general but there are instances where they are not the best option available. Were you given specific reasons?

    Unfortunately this is a choice that needs to take everything into account and therefore you'll struggle to arrive at the best option for you in a forum like this.


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    #3
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    gozunda wrote: »
    Recently been advised that PRSAs are not a particularly good pension option anymore

    Any thoughts on this?

    Did the person who gave you that advice offer an alternative solution - maybe stashing money in the mattress or buying gold bars? Agree with the previous poster, it's a bit too general to be credible advice.


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    #4
    gozunda
    Registered Users Posts: 18,996 ✭✭✭✭gozunda


    coylemj wrote: »
    Did the person who gave you that advice offer an alternative solution - maybe stashing money in the mattress or buying gold bars? Agree with the previous poster, it's a bit too general to be credible advice.

    Ya thanks get the sarcastic bit - I believe the opinion was in comparison to other pension option in that they are no longer as good as the alternatives


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    #5
    Eoin0603
    Registered Users Posts: 29 ✭Eoin0603


    gozunda wrote: »
    Ya thanks get the sarcastic bit - I believe the opinion was in comparison to other pension option in that they are no longer as good as the alternatives

    My post related to "compared to other pension options".

    Prsa's have their restrictions but so do all types of pension. A prsa may not be the best option for some but is the best for others.


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    #6
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    Eoin0603 wrote: »
    My post related to "compared to other pension options".

    Prsa's have their restrictions but so do all types of pension. A prsa may not be the best option for some but is the best for others.

    If you work for a small company which doesn't have it's own scheme, a PRSA is really the only way to go.


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    #7
    Eoin0603
    Registered Users Posts: 29 ✭Eoin0603


    coylemj wrote: »
    If you work for a small company which doesn't have it's own scheme, a PRSA is really the only way to go.


    Again I don't agree, why would you rule out personal pension or sipp? Prsa may be the only way to go but we don't have enough info in this instance to decide.


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    #8
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    Eoin0603 wrote: »
    Again I don't agree, why would you rule out personal pension or sipp? Prsa may be the only way to go but we don't have enough info in this instance to decide.

    Because the fee levels on PRSAs are controlled and your employer may make a contribution to his/her employees PRSA accounts whereas it's unlikely they will for an individually administered (personal) pension. Outside of an existing company DB or DC scheme, a PRSA is the best way for an employed person to go.

    I believe a SIPP is a UK species of personal pension so not sure why you bring it up, surely PRSA is the Irish equivalent so why do you mention SIPP as if it was some kind of alternative for Irish workers?


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    #9
    Eoin0603
    Registered Users Posts: 29 ✭Eoin0603


    COYLEMJ There is nothing preventing an employer making a contribution to a personal pension plan and they can do so without the need to take on the onerous tasks of trusteeship which is typically the reason why an employer avoids setting up a DB or DC scheme. I don't see why they are any more or less likely to make a contribution if the individual has a PRSA or Personal pension.

    Yes fees are controlled in a PRSA which is a big plus, however depending on the circumstances ie term to retirement, contribution levels etc the individual may be better off investing in Personal Pension plan as charging/bonus structures may prove better for the individual.

    SIPP's or self invested personal pension plans are available in Ireland and offer the same advantageous investment options as SSAP's (small self administered Pensions) do for directors and employee's with willing employers. (Albeit with some extra cost considerations)

    To be honest I think this thread is going slightly off point, which is a point we originally agreed on, there is not enough info available to make a call on whether the PRSA route is good or bad for this individual.

    As I said earlier PRSA's have their place and I think are a useful option for many people but they are just that, an option.


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