Personal Retirement Savings Accounts (PRSAs) are flexible, portable, low-cost, transparent pensions. Anyone can take out a PRSA regardless of employment status. You and your employer, if any, can make tax-free contributions to it, you can take it with you if you change your job or employment status, and you can stop and start making contributions at any time.

You need to decide how much money you will require in retirement to meet your aspirations. You may well find that the euro invested for tomorrow will be much better used than the one spent today.

The longer you save, the larger your retirement fund will be. The earlier you start, the easier it is to fund for your target pension. Clearly, it makes a lot of sense to pay contributions for as long as possible.

You have the option of transferring the assets of your PRSA to another PRSA or pension scheme, subject to such conditions as may be prescribed by the Revenue and the Pensions Board.

Providing that the parties involved agree and the relevant legislation is complied with, your PRSA may receive transfers of assets from another PRSA or pension arrangement.

There are various limitations on transferring assets from an occupational scheme into a PRSA and you should discuss the options with your employer/financial advisor.

1. Contributions into your PRSA are not taxed up to certain limits. The table below sets out the limits

2. The investment growth that your retirement fund achieves is also free of tax.

3. Although you do pay tax on your retirement income, you will get a tax-free lump sum that is 25% of your accumulated fund (except for PRSA AVCs).**

*Subject to a maximum earnings of €150,000 p.a. under legislation in 2009. This figure will be indexed annually.

†30% limit applies to professional sportspersons who are less than 55, (such as athletes, jockeys).

** If the monies are coming from an AVC plan, the amount of tax-free cash available will depend on your service, your salary, the tax-free cash available from your main pension scheme and the maximum tax-free cash you are allowed under Revenue rules.

Your fund will be paid free of income tax to your estate if you die before drawing your retirement benefits; inheritance tax, however may still apply.

With an Zurich Life PRSA you choose the investment strategy that suits your attitude to risk and return.

If you are happy to make your own investment decisions and want to choose from a range of funds investing in a variety of assets, geographical areas and sectors then the Zurich Life Matrix range of funds could be for you.

If however, you are not comfortable making investment decisions you can select our Default Investment Strategy which automatically changes your pension fund to a lower-risk portfolio as you near retirement.

Default Investment Strategy (DIS)

The Default Investment Strategy (DIS) is an automatic mechanism that gradually transforms your pension fund from a higher-risk portfolio to a lower-risk portfolio as you approach retirement. This protects you from the full impact of a stock market crash prior to retirement. It will be chosen for you if you make no choice as to your investment preference.