Guide · 7 min read
The PRSA, explained properly.
Personal Retirement Savings Accounts get mentioned a lot and explained almost never. Here's what they are, how they differ from an occupational pension, and when each one wins.
What a PRSA is
A PRSA — Personal Retirement Savings Account — is a pension in your own name, not tied to any employer. It was introduced in 2002 with the aim of giving Irish workers a portable, flexible and transparent pension product, especially those who weren't being offered an occupational scheme.
Mechanically, it's a contract between you and a PRSA provider (Irish Life, Zurich, New Ireland and so on). You contribute into it; the money is invested in funds you choose from the provider's list; and it sits there, growing, until you decide to draw it down — typically from age 60 onwards.
Standard vs non-standard PRSAs
There are two legal categories of PRSA:
- Standard PRSA — capped charges. The provider cannot charge more than 5% of each contribution plus 1% AMC per year. Fund choice is more restricted as a result.
- Non-standard PRSA — no cap on charges, but a wider range of funds available, including more specialist options.
For the vast majority of savers, a Standard PRSA does the job. The charge cap is there for a reason.
PRSA vs occupational pension
If your employer offers an occupational pension scheme, the decision is rarely "PRSA or occupational" — it's usually "take the occupational scheme, because the employer contribution is part of your total compensation". Turning down employer pension matching is, in most cases, turning down free money.
Where PRSAs shine is in the gaps. Specifically:
- Self-employed people and contractors — no occupational scheme available, PRSA is the obvious home for retirement savings.
- Workers whose employer doesn't offer a pension — since 2003, every Irish employer has had to offer access to at least a Standard PRSA, even if they don't contribute to it.
- People moving jobs frequently — a PRSA goes with you. An occupational scheme often becomes a "preserved benefit" you have to track.
- Top-ups — you can have a PRSA alongside an occupational scheme, although AVCs to the main scheme are often a cleaner route.
Employer PRSA contributions (post-2023)
Since the 2022 Finance Act, the tax treatment of employer contributions to PRSAs has changed significantly. Employer contributions are no longer treated as a Benefit-in-Kind for the employee, and there's no age-related percentage limit on employer PRSA contributions. This has made PRSAs considerably more attractive for directors of small companies and for executive remuneration planning.
A note on this shift. The post-2023 PRSA treatment is genuinely new territory and the rules have been tweaked further since. If you're a company director thinking of using a PRSA as an executive pension route, speak to a qualified adviser — this guide is general education, not advice.
What to compare between PRSA providers
The mechanics of every PRSA are similar. The differences show up in:
- Charges — within Standard PRSAs, everyone is at or near the 1% / 5% cap, but the actual headline AMC can be lower on some funds.
- Fund range — how many funds the provider makes available, and what kind (index, actively managed, lifestyle, ESG).
- Default fund quality — most savers never change from the default. The default fund matters more than most people realise.
- Online service — some providers have genuinely modern apps and dashboards; others are still running on 2009-era portals.