PRSAs – Keeping the ‘Personal’ in Retirement Savings

New PRSA changes offer your clients a route to IORP II compliance

The preferred solution for your customers?

The Finance Act 2022 was enacted in December and its PRSA changes came into effect from 1 January 2023. This change in legislation came at a crucial time as scheme trustees must now comply with IORP II.

The PRSA is now well suited to clients who previously would have been best served by an Executive Pension. Choosing a PRSA in these cases retains the standalone nature of the plan and helps you to keep a direct one-to-one relationship with your valued clients.

Synergy PRSAs – the improved option

To support you and show our commitment to PRSAs and this new target market, we now have

  • improved initial commission for regular contributions
  • enhanced bonus commission for single contributions and transfers from another pension provider

All this with Standard Life’s same excellent service, technical support, and a wide range of PRSA investment choices, including self-directed options.

Finance Bill 2022

The Finance Act 2022 amendments have made the PRSA a comparable alternative to an Executive Pension. Some reasons to choose a PRSA include:

  • Improved funding limits* for employees and company directors, and all employer contributions receive tax relief in the year they are paid
  • Where an employee dies in service, the full PRSA fund is paid to their estate
  • PRSA holders can drawdown their retirement benefits in stages, up to age 75, using multiple PRSAs

*subject to Standard Fund Threshold

For more on why PRSAs offer more control and a better individual solution in many cases, see the table of comparison.

Key Documents