AIB PRSA

Personal Retirement Savings Account

The AIB PRSA is available to those who are self-employed, who work in non-pensionable employment or those not in employment but who wish to provide for their retirement. Tax relief (described below) is made available to those who save towards their retirement using an AIB PRSA.

Who this plan suits?

This plan is available to those who are self-employed or who work in non-pensionable employment, and who

• Wish to invest a % of their disposable income over the longer term
• Wish to maintain their standard of living in retirement
• Wish to invest their long-term savings in the most tax-efficient manner
• Want to invest in a range of equity, property based funds &/or secure funds
• Want more control over access & investment options of their accumulated pension funds in retirement

Additional Features / information

(For full terms & conditions of each of these features and for eligibility please arrange an appointment with an AIB Financial Adviser who will explain the features, terms and conditions in full)

• Standards -All PRSAs have to meet set standards laid down by the Pensions (Amendment) Act, 2002. These standards are monitored by the Pensions Board with the consumers’ interests in mind. PRSAs are intended to be simple to understand, adaptable to changing circumstances and to offer excellent value for money.
• Keeping you informed - Every six months, you will be sent a Statement of Account (showing the contributions paid into a customers PRSA) and an Investment Report (showing the investment returns earned on the funds). 
• Retirement benifits - Each year, a customer will also receive a Statement of Reasonable Projection; this is an illustration of the benefits that they could receive at retirement, based on the value of all their AIB PRSA at the time, the future Contributions that they expect to pay, the prevailing scale of charges - and assumed rates of investment growth.
• Tax Relief - The Government will give policyholders tax relief on contributions, at the highest marginal rate of tax they pay, for contributions of up to 15 to 40% of earnings (depending on age).
• Investment of contributions - Through the AIB PRSA, contributions will be invested - together with those of many other pension customers - in one or a choice of several investment funds which are managed, on a day-to-day basis by Aviva Investors.
• Choice - The funds available range from “low risk” (deposit style) funds to “medium to high risk” funds which tend to invest solely in shares or property or in specific geographical locations. 
• Charges - An AIB PRSA is a standard PRSA as approved by the Revenue Commissioners and Pensions Board. This means that charges are capped and cannot be increased above 1% for the Fund Charge and 5% for the Contribution Charge (although AIB reduce these charges for premiums above a certain level).

This information is based on AIB's understanding of current law, tax and Revenue pratice, September 2008.

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