Securing your Future with A PRSA

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Securing your Futurewith A PRSA

• New Ireland Assurance
• DATE
• New Ireland Assurance Company plc is regulated by
  the Financial Regulator

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Contents

• What is a PRSA
• Tax Relief
• PRSA Charges
• Retirement Benefits
• Investment Options

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What is a PRSA?

• Personal Retirement Savings Account
• Pensions more accessible
• Investment vehicle for long term retirement
  provision
• Individually held and owned
• Value for Money Low Cost
• Tax efficient flexible product

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Why take out a PRSA?

• Old Age Contributory Pension only 193.30 per
  week / 342.60 per week with Adult Dependant
  (over 66) Is That Enough???
• To replace earned income at retirement
• Maintain good standard of living
• Tax efficient 3 types of tax incentives
• Remember!!! Your PRSA is in addition to your
  Social Welfare Pension

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Tax Benefits

• Tax Savings on contributions
• Tax Free Investment
• Tax Free Lump Sum at Retirement

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How Tax PRSI Relief is granted on contributions

• Pensionable Salary 30,000
• Employer Contribution 4 (100 per month)
• Employee Contribution 6 (150 per month)

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Contributions ( as a of Pensionable Salary)
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Maximum ContributionsPercentage of your actual
salary you can contribute to your PRSA and obtain
tax relief limit applies to both Employee and
Employer contributions
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SSIA Investment Opportunity

• An eligible SSIA holder will have three-months
  from the maturity date of his/her SSIA to
  reinvest some or all of the SSIA proceeds in a
  pension product.
• This will be invested on a 31 ratio.
• EG. If you invest up to 7,500 the revenue will
  invest up to 2,500.
• 50,000 salary cap

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SSIA Investment Opportunity

• You must request your SSIA provider to issue you
  a maturity statement.
• You will have 3 months after the maturity date of
  your SSIA to invest some or all of your the
  proceeds in the pension.
• You send your amount and maturity statement to
  New Ireland.
• New Ireland will apply to the Revenue for the
  relevant tax credit and additional tax credit in
  a similar fashion to SSIA credits.

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What do I get at Retirement?

• 25 of fund tax free
• Balance (taxable)
• Cash in it
• Invest in an Approved Retirement Fund and take
  income
• Purchase a pension / annuity
• Invest in an Approved Retirement Fund and leave
  for next of kin

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Retirement Options

• To Invest in an ARF you must have
• Guaranteed income of 12,700 or
• Invest 63,500 in Approved Minimum Retirement
  Fund (AMRF).

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Charges Standard PRSA

• Management Charge
• 1 of value of fund
• Contribution Charge
• 5 per annum

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What happens if You Leave

• You can take your Investment with you

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The Sooner you Start, the Better
Note figures quoted are based on a contribution
of 134 per month, salary increasing at 3 p.a.
Retirement Age 60
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Investment

• Bank of Ireland Asset Manament manage all New
  Ireland Funds
• Investment choice crucial to individual employees
  
• Employer has no liability regarding fund choice.

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Investment Options

• Default Option
• Individual Retirement Investment Service (IRIS)
• Managed Funds
• Pension Managed Fund
• Pension Evergreen Fund
• Pension Security Managed Fund
• Consensus Fund.
• KBCAM Pension Managed Fund

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Investment Options

• Pension Cash
• Pension Gilt Fund
• Pension Equity Fund
• Pension International Equity Fund.

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Individual Retirement Investment Service - IRIS

• Two Simple Rules
• The longer the term is to Retirement, the higher
  the proportion invested in Equities
• As Retirement approaches, income is secured by
  switching into Fixed Income Assets/Cash.

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What is IRIS ?

• Individual Retirement Investment Service is New
  Irelands unique lifestyle investment option
• It recognises that a single fund may not be able
  to provide the right strategy for all employees
• Provides each employee with a fund tailored to
  match his or her own requirements
• Removes the need for the employee to make complex
  investment decisions.

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Example Progression of the IRIS Fund 2018

• Member continues to invest in the same fund
• Asset mix of fund gradually changes as retirement
  approaches

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IRIS in Action
Note Past performance is not necessarily a guide
to future performance. Unit prices can fall as
well as rise. Source Moneymate
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PRSA Online - Employee Benefits

• You can access up to date information on your
  PRSA
• Contribution History
• Fund Value
• Choice of Funds
• Its easy to use !

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Can I keep track of my Fund Performance?

• Statement of Account an Investment Report every
  6 months
• Statement of Reasonable Projection every year
• PRSAs Online

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Conclusion

• State Pension is not enough.
• PRSAs are good value for money
• PRSAs are portable, individually held and owned
• PRSAs offer generous tax benefits.