You decide. You can think about it two ways:

• How much will you need to fulfill your retirement plans or goals? or
• How much of your salary can you reasonably afford to give up now for the future?

Don't forget to take into account the tax reliefs that you will receive.

You can get started anytime. The earlier you start, the easier it will be to reach your target pension. The table below shows the percentage of salary you could build up with a regular contribution of 20% of your earnings, by starting your PRSA at various ages.

* Please note that tax relief is limited to 15% of earnings for those below age 30.
Assumptions:  Retirement age of 65. Number of monthly contributions for a client starting at age 30 is 12 x (65 - 30.5), i.e. 414. Current salary €36,000. Salary and contribution escalation of 3% p.a. Investment return of 6%, inflation rate of 3%. The annuity rate used assumes a male life, spouse's pension of 100%, post retirement investment return of 4%, a 5 year guarantee period and 2% escalation p.a. The figures above assume the continuation of current expense charges, a 4.25% contribution charge and a 1% annual management charge.

Warning: These figures are estimates only. They are not a reliable guide to the future performance of this investment. The value of your investment may go down as well as up. Benefits may be affected by changes in currency exchange.

Yes, you have the option of transferring from a pension scheme or existing PRSA into another PRSA. As you'd expect, this is subject to conditions set by the Revenue and the Pensions Board.

If you meet the terms and conditions of the legislation, you can receive transfers from other PRSAs or pension arrangements in to your new PRSA.

If you are a member of an occupational scheme, there are limits on transferring your pension into PRSA. It's important that you talk to an independent financial advisor before transferring from an employer sponsored arrangement to a PRSA.

Yes. When you receive your PRSA contract and Statement of Reasonable Projection you'll have a 'cooling off period' - that's 30 days to think about whether the PRSA you've chosen is right for you.

During this time you can cancel your policy and get a full refund of any money you've invested. Please bear in mind that if you take out a single contribution contract and your investment makes a loss, the amount you'll be refunded will reflect the loss. However, if the value of your PRSA increases within this period, the growth will not be refunded. 

Yes. You can transfer to an Occupational Pension scheme or another PRSA without charge any time you like.

Yes, you can have any number of PRSA contracts but the tax relief on your total contributions will be limited each year to a percentage of your income depending on your age. Find out more (link to key tax savings question)

Standard PRSAs are Government approved retirement savings plans.

The most any provider can levy for this type of plan is a 5% charge on contributions as they're paid and a 1% annual management charge of the fund.

At RaboDirect we charge less on contributions so you can save more: 

 For regular contributions

For one-off contributions

There are no charges:

• For initial transfers received into your PRSA

• If you terminate your PRSA or transfer your funds out, or

• Suspend or vary your contributions 

For Personal Pension Plans there are no restrictions on the types or levels of charges for plans. These will vary between providers.

Yes, if you select the DIS when you apply but decide later that you'd like to make your own fund choices, you can make the change to your policy by writing to Zurich Life with a list of the funds you want to start investing in. It's worth noting however that if you opt out, you won't be able to go back to the DIS and you may want to seek financial advice before you make your fund choices.

Yes you can, the cheque should be made payable to 'Zurich' and on the back of the cheque your policy number and name should be quoted.

Please post directly to:

Zurich Cashiers Department
Eagle Star House
Frascati Road
Blackrock
Co Dublin

Yes, you can contribute to a PRSA and a Personal Pension (Retirement Annuity contract) at the same time. If you're Self-Employed or an Employee not currently included in an employer-sponsored Occupational Pension Scheme you can contribute to a PRSA or Retirement Annuity contract. Just remember, tax relief on your total contributions will be limited each year to a percentage of your income.  Find out more  (link to key tax savings question)

• Monthly, quarterly, half-yearly or yearly by direct debit from your bank account.
• One-off payments can also be made.

The minimum contribution is:

• €10 by electronic transfer, including direct debit.
• €50 by any other means, including cheque.

Yes, you can increase, reduce or stop PRSA contributions at any time without charge. If you're making contributions by direct debit from your bank account you'll need to let Zurich Life know about the change in writing. If you stop, the fund you've already built up will continue to be invested and you can start   making contributions again at any stage.

The value of your PRSA will be paid tax-free to your estate if you die before drawing your retirement benefits. Normal Inheritance Tax rules apply on the subsequent payment from your estate, which means your fund will pass to your spouse tax-free.

An annuity is a guaranteed income for life. You can buy an annuity with your retirement proceeds from Zurich Life, or on the open market.

If you intend to purchase an annuity when you retire, you can choose the Default Investment Strategy (Annuity).

Your contributions will be invested like so:

Five years before your selected retirement date, the money invested in the Dynamic, Performance and Balanced Funds will gradually be switched into the lower-risk Active Fixed Income Fund (i.e. part of the value of each fund will be switched into the Active Fixed Income Fund each month) so eventually your PRSA will be invested 100% in the Active Fixed Income Fund.

The value of the active Fixed Income Fund will change broadly in line with changes in the cost of annuities as interest rates fluctuate, thus helping to protect you against the risk of a sudden rise in the price of annuities close to retirement.

An ARF (Approved Retirement Fund) is an investment fund with a Qualifying Fund Manager that allows you flexibility in terms of how you use your AVC Investment Account at retirement. You can do all of the following:

• Decide where you want your money invested from a choice of different funds.
• Make withdrawals from your ARF as you need them.
• Withdraw the total amount of the AVC Investment Account.

If you intend to purchase an ARF when you retire, you can choose the Default Investment Strategy (ARF).

Your contributions will be invested like so:

Five years before your retirement date, the money invested in the Dynamic and Performance Funds will gradually be switched into the Balanced Fund (i.e. part of the value of each fund will be switched into the Balanced Fund each month) so eventually your PRSA will be invested 100% in the Balanced Fund.

• The maximum allowable total pension fund value in 2009 is €5,418,085.
  If your pension fund exceeds this, you'll have to pay 41% tax on the excess and the health levy may also apply. Any subsequent draw-downs will also be subject to income tax and the health levy. 

• The maximum allowable tax-free lump sum in 2009 is €1,354,521.

Yes. The taxman looks kindly on people saving for retirement so you get a really good deal. The tax relief has limits but as the table below shows, the cost of contributions is significantly lower when the tax relief is applied. 

PRSI relief comprises of PRSI & the health-levy.PRSI is payable at a rate of 4% on income up to €75,036 and 0% on income above this. The health-levy is payable at a rate of 4% on income up to €75,036 and 5% on income above this. Please note that PRSI relief is not available for the self-employed.

1. Contributions into your PRSA are tax free, up to the Revenue limits below. 

The limits are subject to maximum earnings of €150,000 per year under current legislation in 2009. A 30% limit applies to professional sportspersons who are aged below 55, such as athletes and jockeys.

2.  Investments in a PRSA roll up free of tax. This gives them the potential to earn higher investment returns than similar investments that are subject to tax.

3.  If you are a member of an occupational pension scheme, you may use your PRSA to increase the tax-free cash you take at retirement. This is subject to Revenue limits and rules. Alternatively, if your PRSA is your main source of retirement provision, then you may take 25% of your PRSA as a lump sum, free of tax.

After taking tax-free cash, the remainder of your fund can be used to provide you with an income in retirement. You must pay income tax and the health and income levies on this income. 

When you receive your PRSA contract document, it will include a certificate that allows you to claim the Income Tax relief on your contributions.

Employees and directors can claim PRSI and health levy relief each year for the current year's contributions (and for the previous year's contributions where not previously claimed). This relief is not available for the self-employed. Simply complete form CGPRSI1 and send it to the Collector General's Office in Limerick. Form available at www.revenue.ie

Withdrawals from an ARF or continued PRSA and income from an annuity are subject to income tax, the income levy and until your 70th birthday, the health levy. The normal tax credit and income exemption limits apply.

If you have any other income liable to levies at the higher rates, income drawn down from an ARF (or continued PRSA if you're in an AVC PRSA) may also be subject to the higher levy rates.

Due to recent legislation introducing an annual tax to be paid on the value of an ARF, called an 'imputed distribution', if no income is drawn from the ARF in a tax year, the owner is deemed to have withdrawn 3% of its value and is liable to income tax on that amount.

This tax applies only when the ARF holder is 60 or over for the whole of the tax year.

Any income or encashment taken from the ARF or AMRF during the year will reduce the deemed withdrawal for the purpose of calculating tax. If the withdrawal equals or is greater than the deemed withdrawal, tax is payable only on the actual amount withdrawn for that year. 

The 'imputed distribution' rule doesn't currently apply to continued PRSAs or AMRFs.

When you die, your AMRF immediately becomes an ARF. Any funds held in your ARF or continued PRSA in your name will be payable to your estate and you can request that they are passed on to anyone you like. The tax on the fund will depend on who inherits it.

The taxation rules can look a bit tricky for ARFs but they offer a great opportunity for tax-efficient inheritance planning. If that's of interest to you, it might be a good idea to get some financial advice.