How it's invested
There are a few investment options with the PRSA. You can:
Select the Default Investment Strategy, which means your PRSA will automatically change to a lower-risk portfolio as you get closer to retirement, giving you some protection from the impact of a stock market crash before you retire, or
You can make your own investment decisions and choose from the Prisma range of Standard PRSA funds provided by Zurich Life
If you opt in to the Default Investment Strategy (DIS) your funds will be selected and managed for you for the duration of your policy. If however, you'd like to make your own fund choices further down the line, you can write to Zurich Life, explain that you'd like to change and they'll arrange it for you. It's worth bearing in mind that you can't opt back in if you ever come out of the DIS.
Tell me more about the Default Investment Strategy
It's a lower risk strategy, but it's designed to meet the reasonable needs and expectations of a typical investor selecting funds with the most suitable risk and reward profile, based on the number of years you have until retirement.
If you've quite a few years to go, it's normal to invest in funds with potentially higher risk and returns early on and move into more stable investments as you get closer to retirement.
If you don't select from the Zurich Prisma range of funds available for a Standard PRSA, you'll be invited to select the Default Investment Strategy for an ARF or an Annuity.
How does the Prisma range of funds work?
With this option, you choose the funds you want to invest in from a range offered by Zurich Life. It's worth taking some time to think about how much control and risk you would be comfortable with if you're thinking of going down that road. And if need be, get some financial advice to make sure it's right for you.
Warning: Past performance is not a reliable guide to future performance. The value of your investments can go down as well as up. If you invest in this product you may lose some or all of the money you invest. Benefits may be affected by changes in currency exchange rates.