Vested PRSA v ARF

Discussion in 'Pensions' started by Zebedee, 13 Apr 2019 at 3:52 PM.

  1. Zebedee

    Zebedee Frequent Poster

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    66
    My aunt is close to retirement and is deciding whether to leave as vested prsa or take an arf. I’d never heard of the former so ive done a bit of digging but can’t see a huge difference (not a pensions expert). Is there one and what are the advantages/disadvantages of choosing one over the other?

    Many thanks in advance
     
  2. SBarrett

    SBarrett Frequent Poster

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    2,928
    No real difference but you have to be in a PRSA already. You can't invest in a vested PRSA.

    BUT, at age 75, she must transfer from the vested PRSA to an ARF or lose access the vested PRSA and it becomes part of her estate.

    So better off investing in the ARF from the outset.



    Steven
    www.bluewaterfp.ie
     
  3. Zebedee

    Zebedee Frequent Poster

    Posts:
    66
    Many thanks Steven. I should have mentioned that her pension plan is a PRSA.