Personal Retirement Savings Account (PRSA)
A PRSA is a portable retirement savings account which you can take with you when you change jobs. A PRSA is a personally owned pension that lets you save for retirement on your own terms, there are 2 types of PRSAs available
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- Standard PRSA - offering a more limited fund selection
- Non-Standard PRSAs - offering a wider choice of funds with higher exposure to market changes
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A PRSA is a pension vehicale and as such you can claim tax relief on you contribtuions. Unlike other savings plans, under current legislation, any growth in your pension fund is not subject to tax.
You can start to use your PRSA to provide retirement benefits at any time between ages 60 and 75
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A PRSA can also be set up for you with your employer, providing you with a practical and flexible pension plan.
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Contributions will be deducted at source
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It is portable, you own the PRSA, so you can take it with you if you leave the company.
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You can choose from a range of investment funds for greater control over your own PRSA.
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Benefit from generous tax relief on your contributions (this is up to 40%*),
* Assumes higher rate taxpayer claiming income tax relief of 40%. Subject to Revenue limits and approval.
Over the last few years there have been changes made to the Employer PRSA structure. From January 1 2025 there is an employer limit for contributions to an employee's PRSA, which is 100% of the employee's earnings (emoluments) for that year.
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Employer contributions to an employee’s PRSA are exempt from BIK in the hands of an employee, however any contributions above 100% of earnings is treated as BIK and become taxable income for the employee.
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The employer's contribution limit is separate from the employee's own contributions. The employee's personal contributions still follow their own age-related tax relief limits. ​
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​The employer can usually claim corporation tax relief on the contributions they make to an employee’s PRSA.
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On leaving employment, the employer is not entitled to a refund of the contributions they made to the employee’s PRSA.​​
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AGE
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Under 30
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30–39 years
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40–49 years
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50–54 years
60+
MAXIMUM CONTRIBUTION BY AGE
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15% of net relevant earnings
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20%
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25%
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30%
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40%