PRSA Advice

[redknight]

Hi there,

I would appreciate some impartial advice if possible on starting a PRSA as I don't have anyone who can advise me except the guy trying to sell me the pension!

I'm in my early 20's earning 30,000 p/a as a PAYE employee.

I'm saving the majority of my salary so thought of sticking some of it away in a pension.

Looking at starting a PRSA with one of the main banks but how not sure if this is the best deal or how I can compare with other providers.

Also how does the news today about the auto-enrollment and single tax relief of 33% affect my decision i.e. is it more useful to start now or just as well to wait until this scheme begins?

Thank you.

 

[StevieC]

Hi redknight

My first bit of advice is dont allow any bank to sell you a pension. They will only sell you their product and tell you it will do the sun, moon and stars than that of course its the best product on the market.

See independent advice from an independent broker who will research the market on your behalf and advise you on the best company to buy a product from. This advice applies to all insurance products, never let a bank sell you anything without getting an independent opinion.

Given the news that happened today, I would hold off doing anything just yet until its clear what the new government plan is going to be. We dont know what the charges are going to be yet although they will probably be the same as PRSA ones.

Regarding the tax relief, you are currently a lower rate tax payer so the new change on relief will be to your benefit. If you become a higher rate payer in the future, you should sit down with a financial planner to decide at what point making contributions no longer is in your interest.

Hope this helps, dont let the bank push you into anything.