PRSA vrs Savings plan

[johnson32]

I currently have a prsa with Irish Life with no company contribution. Is it worth it long term? I am thinking in putting the money into a long term saving scheme with a better return at the end of it! Then decide what to do at that time depending on the economic conditions in 5 years time. What i want to know is, would this be a good move or not? cheers

 

[Dave Vanian]

Why do you think your savings plan could yield a better return at the end of the term?

Your savings plan is paid out of after-tax incme with no tax benefits. Your PRSA contributions qualify in full for tax and PRSI relief.

 

[ClubMan]

Remember that for each €1 into your pension (which includes full tax and PRSI relief) will compare to as little as €0.53 from net income into your non pension alternative savings/investment fund so the latter would need to grow by almost 100% just to keep pace with the pension.