Case Study 2
We don’t provide financial advice so this case study is a guide to help you decide which PRSA option suits you best. We hope you find it useful for your research.
I’m an Employee or Director not in an Occupational Pension Scheme.
If your employer or company doesn’t provide a pension scheme, then making your own plans for retirement by saving or investing is really important and you get generous tax incentives from the State for doing so.
It’s like setting up a savings plan, with advantages:
- State assistance through tax relief, subject to certain limits, on your investment
- no taxes being paid on the gains made by the investments,
- a tax-free lump sum when your plan matures, and
- you can use the balance to provide you with an income.
Your employer is required by law, to provide you with a salary deduction facility to make contributions to at least one Standard Personal Retirement Savings Account (PRSA).
You can contribute to a RaboDirect PRSA by direct debit from your bank account on a monthly basis, or make one-off payments – whatever works for you. And, you’ll be entitled to Income Tax, PRSI and health levy reliefs on your contributions (if paid by salary deduction), subject to the normal revenue limits.