Should I continue with PRSA?

S

Sunster

Registered User
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344
very basic question- I'm 34 and have been paying a thousand euro into a regular BOI PRSA for the past 4 years. Needless to say its not worth half as much as I've paid into it.
In todays economic climate, should I take a break from paying into it and just put the money away in savings....reduce what I pay into it...or just continue on?
What do the finance experts on here say?
 
There have been a few topics related to this subject already.

To recap, if you just put the money on deposit then you will not avail of the tax relief available. You dont mention if you are a higher rate tax payer or not but if you are then you are instantly up 41% in relief, that kind of makes up for the fact markets have nosedived.

The fact that you are making regular contributions means that recently you have been buying units in your fund at relatively cheap prices. At age 34 you have plenty of time for markets to recover as it will be most likely another 30 years before you retire.

If you can afford to keep contributing €1000 a month then keep buying cheap fund units in my opinion as when markets turn around then this along with the tax relief you receive will more than make up for any loses over the last 4 years.
 
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