From pensionsauthority.ie: "PRSAs are flexible; you can increase, decrease or stop your contributions at any time without any charge or penalty". It's commonly cited as a benefit of the PRSA structure, but I don't think it's true in all cases.
Lots of the approved PRSA schemes have got a contribution charge which varies based on the size of your contributions.
Eg. Aviva Simple PRSA
<€9,600 (pa) 5%
≥€9,600 (pa) 3%
so...
€800 pm => €776 equity
€799 pm => €759 equity
I don't think this kind of pricing structure is unfair, but I'm not sure it should be sold as "penalty free flexibility".
Semantics aside, isn't a "discounted fee for higher contributions" functionally the same as an "increased fee for lower contributions"?
Lots of the approved PRSA schemes have got a contribution charge which varies based on the size of your contributions.
Eg. Aviva Simple PRSA
<€9,600 (pa) 5%
≥€9,600 (pa) 3%
so...
€800 pm => €776 equity
€799 pm => €759 equity
I don't think this kind of pricing structure is unfair, but I'm not sure it should be sold as "penalty free flexibility".
Semantics aside, isn't a "discounted fee for higher contributions" functionally the same as an "increased fee for lower contributions"?