PRSAs

A Personal Retirement Savings Account (PRSA) is a Pre-Retirement Pension Policy, suitable for Business Owners and Employees who are not a member of an existing Occupational Pension scheme.

From January 2025, Employer Contributions to PRSAs are limited to the salary of that person in that year.

A PRSA is based on Contract as opposed to Trust, therefore there is no need for a Trustee. Furthermore, for PRSA pensions set up by a Company, the 2-year vesting period cannot apply.

A PRSA pension can also be used to house transfers from old Occupational Pension Schemes.

Unlike a Company Pension Scheme, a PRSA can remain ‘pre-retirement’ up to age 75. Therefore, a PRSA can be a useful pension contract to house a transfer from a Company Pension Scheme, but only if the individual has less than 15 years of pensionable service.

An AVC PRSA can be set up to make personal contributions to a Company Pension Scheme.