PRSA for dummies

M

MichaelM.

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Hello I am looking for some advise on a PRSA. I actually find the topic very foggy and I hope somebody can help me.
I am 57 and have a PRSA with Zuruch. I am paying roughly 100 Euro a month into it.
The current transfer value is ca Euro 21000 and Future value is ca 25500 at 60.
What I understand is: I can take 25% of this as a lump sum and Zuruch is paying me a monthly income of 57 Euro ( this figure is shown in future values) .
So from the remaining ca 19200 Zuruch would pay me 57 Euro a month until the money is used up? Is this correct? Is this a good deal?
There seem to be other options like AMRF or Annuity.
Can somebody explain in simple words what these options mean?

Thanks in advance
 
MichaelM. said:
Future value is ca 25500 at 60.
Click to expand...

This is a projection and the actual figure may be higher or lower. The projection is probably based on your continuing to pay €100 a month. In simple terms the €25,500 figure is a guess, its not a promise.

The €19,200 (surely €19,125) is just what would be left over if you took the 25%. That would be used to buy an annuity as Merowig says. However the €19,200 figure is just a guess and the value of an annuity that could be bought for €19,000 in 3 years time i.e. the €57 is also a guess. A guess on top of a guess.

You ask is it a good deal. Well when you are 60 you can shop around to see if some other company will offer you a better deal, you don't have to buy the annuity from Zurich.

You could also postpone buying the annuity until you are older. In my opinion better rates may be available in 5 to 10 years time, they could hardly be worse. This of course is only a guess on my part.
 
Thanks for that!
One more thing -:)
What does 'guaranteed for 5 years' in the sentence below mean?
The illustrative monthly pension is based on a Single Life Annuity, payable monthly in advance, guaranteed for 5 years and escalating at 1.5% per annum.

Actually two more things: Do i have to take the 25% lump sum or can I purchase the annuity with the complete sum?
 
Last edited:
MichaelM. said:
What does 'guaranteed for 5 years' in the sentence below mean?
The illustrative monthly pension is based on a Single Life Annuity, payable monthly in advance, guaranteed for 5 years and escalating at 1.5% per annum.
Click to expand...

It means the annuity payments are guaranteed for 5 years even if the annuitant dies within those five years.
 
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