Personal Pensions (Self Employed)
Personal Pensions (for PRSAs) are for self-employed (Schedule D) earners, or those who do not wish to avail of the employer-sponsored pension scheme. The maximum funding that will receive tax-relief is: | Under 30 | 15% of taxable earnings | | 30 – 40 | 20% of taxable earnings | | 40 – 50 | 25% of taxable earnings | | 50+ | 30% of taxable earnings |
Over-55s can now invest 35% and over 60s can invest 40%. October each year is now the busy season for Lump-Sum Personal pension contributions – and Pension Providers traditionally offers discount entry costs depending on certain criteria. It pays to get professional advice especially around this time of year. PRSA or Personal Pension?
It’s much of a muchness. The only difference between the two is the charging structure – so go for the contract with the lowest charges. For the PRSA market Standard PRSAs are the way to go, where a maximum charging structure has been imposed by legislation. It is difficult to see how the charges applied to many non-Standard PRSA contracts can be justified. The maximum charges that can be applied to a Standard PRSA are: 5% entry charge and 1% annual management fee. If you’re there or thereabouts, there are no distinguishing differences between a PRSA and a Personal Pension. Charges for Personal Pension often come to lower – both on the entry charge and the management fee. Investment options are wide and varied and can be discussed in detail with our Wealth Manager. |
