A PRSA Is Just A Wrapper

Once you’ve established that it’s PRSAs, and not occupational pension schemes, that are relevant to you, it’s then important to understand what a PRSA actually is.

A PRSA can be thought of as an account for the money that you’ve set aside for retirement. 

When money is placed into the account, via ‘pension contributions’, that money is then invested in one or more ‘investment funds’ that are accessible via that particular PRSA. 

Many individuals who have PRSAs aren’t aware that they have control over how their money is invested within the PRSA. When a PRSA is set up, you’re automatically assigned to the ‘default investment strategy’ of that PRSA unless you decide otherwise. 

In other words, if you set up a PRSA and don’t actively choose where your money is invested, then the PRSA provider will just invest your money in the default option.

The default option is typically a ‘lifestyle strategy’ whereby the mix of assets that your money is invested in automatically changes over time as you approach retirement. While default investment strategies are certainly something to consider, it’s also important to consider actively managing your PRSA investments, in order to align them with your own personal retirement goals.

PRSA Performance in Ireland

What’s The Best PRSA?

One question that’s commonly asked is “what’s the best PRSA in Ireland?”. 

While the intention behind the question is understandable (i.e. to decipher which PRSA is going to yield the best results) the question itself is somewhat flawed. Reason being, it assumes that there is in fact one PRSA that is objectively the best for everyone. This isn’t the case. 

Why? Well because certain PRSAs are inevitably going to be more suitable to one group of individuals over another. 

Remember, the PRSA itself is just the account, it’s the suite of investment funds which the PRSA offers access to which matter the most.

PRSA investment fund selection comes down to personal preference which, in turn, is (or should be) guided by an individual’s attitude towards and tolerance for risk as well as their own personal circumstances. As such, stating that the investment selection offered by a particular PRSA is objectively ‘the best’ is a difficult task.

PRSA Pension Performance

Everything you need to know

That said, there are some things to be aware of when researching PRSAs:

The Pensions Authority publishes regular data about PRSAs in Ireland. For example, the ‘PRSA Providers and Products Register’ document shows all of the PRSA providers that are currently registered in Ireland as well as how many PRSAs each provider has available and whether these PRSAs are standard or non-standard PRSAs. 

What is the difference between standard and non standard PRSAs?

With standard PRSAs, there is a maximum contribution charge of 5% per contribution and a maximum fund charge of 1% per annum. 

Non-standard PRSAs on the other hand are not subject to maximum charges, but they offer a wider investment selection than standard PRSAs. Note that each PRSA has a reference number formatted as APP/X/XXX/XX. 

This reference number can be used to not only differentiate between PRSAs, but also to identify your employer’s nominated PRSA (doing so would require this information to be disclosed to you).

Every PRSA comes with either a contribution charge or an annual fund charge (or both). A contribution charge is a charge levied on the contributions that you make to your PRSA. 

For example, if a PRSA had a contribution charge of 5%, then a €100 contribution would result in €95 being invested and €5 being paid in fees. The annual fund charge on the other hand is a charge that is levied on the value of your PRSA account. 

For example, if a PRSA had an annual fund charge of 1%, then a PRSA valued at €100,000 in a given year would incur €1,000 in fees. 

Note that both of these charges are automatically collected from within your PRSA and don’t require you to pay a physical bill to the PRSA provider. 

Over the course of your working life, these fees can cost you tens, if not hundreds of thousands of Euros, worth of investment returns. That’s because the cost of a €5 contribution charge incurred today is equal to not just €5, but the total investment return of €5 invested for X amount of years.

Therefore, the goal should be to select a PRSA that offers you exposure to your desired investment funds at the lowest price. In the next section, we provide a summation of both the contribution and annual fund charges that are applicable to every registered PRSA in Ireland as per the Pensions Authority’s website. The best port of call is to select two or three low cost PRSAs and answer each of the following questions alongside your pensions advisor:

  • Does this PRSA offer exposure to a suitable selection of investments? ‘Suitable’ could be taken to mean an investment selection which aligns with your risk tolerance and pension investment objectives.
  • Are there any additional charges which make the PRSA less attractive? Certain PRSAs, usually non-standard PRSAs, have additional charges such as dealing charges, geographic investment charges and third party costs. All of these eat into your investment returns.
  • Is there another PRSA offered by a different provider which offers a better investment selection at a better price? In certain circumstances, there might be a need for a trade-off. For example, you may have to accept slightly higher charges in order to secure your ‘perfect’ investment selection.

This is a key point to understand. Many employees need not look further than their employer’s nominated PRSA. Why? Because the PRSA that is nominated by their employer is oftentimes sufficient to achieve their pension investment objectives. 

Of course, there are going to be exceptions. If the nominated PRSA charges the maximum permissible contribution and annual fund charge, then the employee could most likely secure better value elsewhere. 

However, the key benefit of the employer nominated PRSA is tax deduction at source. Without this benefit, you’ll be investing after-tax cash into your PRSA which is disadvantageous from a cash flow perspective (the tax relief would be claimed after the fact via the individual’s tax return).

Point being, if there isn’t a material difference between the investment selection and charges offered by your employer’s nominated PRSA and the PRSA that you’re interested in, then you should (probably) stick with your employer’s PRSA.

The Big 5 PRSA Providers

In this section, we’re going to take a look at the PRSA offerings of five of Ireland’s largest PRSA providers:

Insurance-Provider-Zurich
Insurance-Provider-Irish-Life
Insurance-Provider-AVIVA
Insurance-Provider-Standard-Life

Zurich Overview

Zurich Life has one of the best managed fund returns in Ireland over the last twenty years. In 2022, Zurich won both the Investment Provider Excellence award and the Pension Provider Excellence award as presented by Brokers Ireland.

Insurance-Provider-Zurich

Zurich PRSAs

Zurich has a number of both standard and non-standard PRSAs available. As of 30th October 2023, the PRSAs available are as follows:

PRSA Code Standard or Non-Standard Contribution Charge* Fund Charge*
APP/J/371/S Standard 5% 1%
APP/J/406/S Standard 0% 1%
APP/J/369/S Standard 0% 0.75%
APP/J/953/S Standard 3.5% 1%
APP/J/565/S Standard 2% 1%
APP/J/291/S Standard 1.5% 1%
APP/J/163/S Standard 5% 1%
APP/J/730/S Standard 0% 1%
APP/J/954/S Standard 0% 1%
APP/J/955/S Standard 1% 1%
APP/J/956/S Standard 2% 1%
APP/J/1003/S Standard 0% 0.50%
APP/J/1004/S Standard 0% 0.75%
APP/J/779/NS Non-Standard 5% 1.42%
APP/J/242/NS Non-Standard 3% 1.42%
APP/J/158/NS Non-Standard 2% 1.42%
APP/J/634/NS Non-Standard 0% 1.42%
APP/J/463/NS Non-Standard 5% 2.17%
APP/J/193/NS Non-Standard 5% 1.92%
APP/J/129/NS Non-Standard 3.5% 1.92%
APP/J/385/NS Non-Standard 2% 1.92%
APP/J/589/NS Non-Standard 0% 1.92%
APP/J/739/NS Non-Standard 2% 1.17%
APP/J/842/NS Non-Standard 0% 1.17%
APP/J/843/NS Non-Standard 3% 1.67%
APP/J/957/NS Non-Standard 0% 1.67%
APP/J/958/NS Non-Standard 1% 1.67%
APP/J/959/NS Non-Standard 2% 1.67%
APP/J/1005/NS Non-Standard 0% 1.50%

*Please note that charges for a PRSA can vary depending on a) whether you avail of direct or broker distribution b) whether the PRSA is for an individual or a company c) whether the individual is investing a regular amount or a once-off lump sum and d) the value of the investments being made. For that reason, the charges listed in the table above are the highest charges that are applicable for a given PRSA. These may or may not be the charges levied on your account in practice. If you’d like to learn more, the National Pension Helpline has a panel of vetted pension experts who can advise you on PRSA contribution charges.

Zurich Funds

Zurich offers a wide range of investment funds that can be accessed via a Zurich PRSA. The full list of funds is regularly updated and can be found here. In the graphs below, the performance of Zurich’s Prisma funds are compared. If you’d like to learn more about Zurich’s Prisma funds you can find each of the factsheets attached below:

  • Prisma 2 factsheet here

  • Prisma 3 factsheet here

  • Prisma 4 factsheet here

  • Prisma 5 factsheet here

  • Prisma Max factsheet here

Comparing the annual returns of Zurich’s Prisma funds from 2014-2022

Note: Data up to 30/09/2023

Comparing the cumulative returns of Zurich’s Prisma funds to 30/09/2023

Note: Data up to 30/09/2023

Comparing the annualised returns of Zurich’s Prisma funds to 30/09/2023

Note: Data up to 30/09/2023

Irish Life Overview

Irish Life are Ireland’s #1 pension provider. Based on market share data from 2019, more people in Ireland choose Irish Life for their pension than anyone else. Irish Life offers access to both award winning investment managers and innovative investment strategies for those looking to set up a pension.

Insurance-Provider-Irish-Life

Irish Life PRSAs

Irish Life has a number of both standard and non-standard PRSAs available. As of 30th October 2023, the PRSAs available are as follows:

PRSA Code Standard or Non-Standard Contribution Charge* Fund Charge*
APP/K/935/S Standard 5% 1%
APP/K/627/S Standard 2% 1%
APP/K/719/S Standard 1% 1%
APP/K/813/S Standard 5% 1%
APP/K/243/S Standard 4% 1%
APP/K/082/S Standard 5% 1%
APP/K/349/S Standard 5% 1%
APP/K/997/S Standard 3% 1%
APP/K/751/S Standard 1.5% 1%
APP/K/897/S Standard 0% 1%
APP/K/072/S Standard 0% 0.75%
APP/K/812/S Standard 1% 0.75%
APP/K/942/S Standard 0% 1%
APP/K/685/S Standard 1% 1%
APP/K/237/S Standard 2% 1%
APP/K/544/S Standard 3% 1%
APP/K/119/S Standard 0% 0.50%
APP/K/640/S Standard 5% 1%
APP/K/716/S Standard 0% 1%
APP/K/736/S Standard 0% 0.75%
APP/K/126/S Standard 5% 1%
APP/K/696/NS Non-Standard 5% 2.60%
APP/K/216/NS Non-Standard 3% 2.60%
APP/K/713/NS Non-Standard 1.50% 2.60%
APP/K/122/NS Non-Standard 0% 2.60%
APP/K/141/NS Non-Standard 0% 1.80%
APP/K/530/NS Non-Standard 0% 1.80%
APP/K/347/NS Non-Standard 0% 1.80%
APP/K/331/NS Non-Standard 0% 1.80%
APP/K/332/NS Non-Standard 0% 1.80%
APP/K/333/NS Non-Standard 0% 1.80%

*Please note that charges for a PRSA can vary depending on a) whether you avail of direct or broker distribution b) whether the PRSA is for an individual or a company c) whether the individual is investing a regular amount or a once-off lump sum and d) the value of the investments being made. For that reason, the charges listed in the table above are the highest charges that are applicable for a given PRSA. These may or may not be the charges levied on your account in practice. If you’d like to learn more, the National Pension Helpline has a panel of vetted pension experts who can advise you on PRSA contribution charges.

Irish Life Funds

Irish Life offers a wide range of investment funds that can be accessed via an Irish Life PRSA. The full list of funds can be found in the Irish Life fund centre. In the graphs below, the performance of seven Irish Life funds are compared. Each of these funds represents a different Irish Life risk rating from IL7 (highest risk) to IL1 (lowest risk). If you’d like to learn more about these funds you can find each of the factsheets attached below:

  • Indexed EM Equity Fund factsheet here (IL7)

  • Indexed NA Equity Fund factsheet here (IL6)

  • Consensus Fund S factsheet here (IL5)

  • Active Managed Fund factsheet here (IL4)

  • Indexed Euro Corporate Bond Fund factsheet here (IL3)

  • Indexed Euro Short Dated Bond Fund factsheet here here (IL2)

  • Global Cash Fund factsheet here (IL1)

Comparing the annual returns of Irish Life funds from 2017-2022

Note: Data up to 30/09/2023

Comparing the annualised returns of Irish Life funds to 30/09/2023

Note: Data up to 30/09/2023

Aviva Overview

Aviva describes their pension offering as straightforward, flexible and cost-effective. They seek to reduce and eliminate pension charges where possible and focus on pension simplicity.

Insurance-Provider-AVIVA

Aviva PRSAs

Aviva has a number of non-standard PRSAs available. As of 30th October 2023, the PRSAs available are as follows:

PRSA Code Standard or Non-Standard Contribution Charge* Fund Charge*
(APP/N/742/NS) Non-Standard 5% 2.45%
(APP/N/595/NS) Non-Standard 3.5% 2.45%
(APP/N/854/NS) Non-Standard 2% 2.45%
(APP/N/921/NS) Non-Standard 0% 2.45%
(APP/F/975/NS) Non-Standard 5% 1.05%
(APP/F/976/NS) Non-Standard 2% 1.15%
(APP/F/977/NS) Non-Standard 2% 1.30%
(APP/F/978/NS) Non-Standard 5% 1.55%
(APP/F/979/NS) Non-Standard 5% 1.80%
(APP/F/980/NS) Non-Standard 0% 0.65%
(APP/F/981/NS) Non-Standard 5% 0.80%
(APP/F/982/NS) Non-Standard 0% 0.90%
(APP/F/983/NS) Non-Standard 5% 1.05%
(APP/F/984/NS) Non-Standard 0% 1.15%
(APP/F/985/NS) Non-Standard 5% 1.30%
(APP/F/986/NS) Non-Standard 0% 1.55%
(APP/F/987/NS) Non-Standard 0% 1.80%
(APP/F/988/NS) Non-Standard 6% 0.80%
(APP/F/989/NS) Non-Standard 6% 1.05%
(APP/F/990/NS) Non-Standard 7% 0.80%
(APP/F/991/NS) Non-Standard 7% 1.05%
(APP/F/992/NS) Non-Standard 6% 1.30%

*Please note that charges for a PRSA can vary depending on a) whether you avail of direct or broker distribution b) whether the PRSA is for an individual or a company c) whether the individual is investing a regular amount or a once-off lump sum and d) the value of the investments being made. For that reason, the charges listed in the table above are the highest charges that are applicable for a given PRSA. These may or may not be the charges levied on your account in practice. If you’d like to learn more, the National Pension Helpline has a panel of vetted pension experts who can advise you on PRSA contribution charges.

Aviva Funds

Aviva offers a wide range of investment funds that can be accessed via an Aviva PRSA. The full list of funds can be found in the Aviva fund centre. In the graphs below, the performance of five Aviva funds are compared. Each of these funds represents a different Aviva risk rating from risk rating 6 (high risk) to risk rating 1 (lowest risk). If you’d like to learn more about these funds you can find each of the factsheets attached below:

  • High Yield Equity Fund factsheet here (risk rating 6)

  • Long Bond Fund factsheet here (risk rating 5)

  • Aviva Multi-Asset ESG Active 4 factsheet here (risk rating 4)

  • Corporate Bond Fund factsheet here (risk rating 3)

  • Cash Fund factsheet here (risk rating 1)

Comparing the annual returns of Aviva funds from 2018-2022

Note: Data up to 30/09/2023

Comparing the annualised returns of Aviva funds to 27/10/2023

Note: Data up to 27/10/2023

New Ireland Overview

New Ireland is one of Ireland’s longest standing pension providers. Operating since 1918, New Ireland is one of Ireland’s leading pension providers with over €16.8 billion in assets under management as at December 2018.

New Ireland PRSAs

New Ireland has a number of both standard and non-standard PRSAs available. As of 30th October 2023, the PRSAs available are as follows:

PRSA Code Standard or Non-Standard Contribution Charge* Fund Charge*
APP/H/217/S Standard 5% 1%
APP/H/316/S Standard 0% 1%
APP/H/397/S Standard 2% 1%
APP/H/170/S Standard 5% 1%
APP/H/748/S Standard 4% 1%
APP/H/137/S Standard 3% 1%
APP/H/117/S Standard 1% 1%
APP/H/525/NS Non-Standard 5% 1.35%
APP/H/035/NS Non-Standard 0% 1.10%
APP/H/109/NS Non-Standard 0% 1.35%
APP/H/874/NS Non-Standard 5% 1.35%
APP/H/723/NS Non-Standard 4% 1.35%
APP/H/176/NS Non-Standard 3% 1.35%
APP/H/503/NS Non-Standard 2% 1.35%
APP/H/084/NS Non-Standard 1% 1.35%
APP/H/059/NS Non-Standard 2% 1.60%
APP/H/962/NS Non-Standard 2% 1.85%
APP/H/508/NS Non-Standard 0% 1.60%
APP/H/858/NS Non-Standard 0% 1.85%

*Please note that charges for a PRSA can vary depending on a) whether you avail of direct or broker distribution b) whether the PRSA is for an individual or a company c) whether the individual is investing a regular amount or a once-off lump sum and d) the value of the investments being made. For that reason, the charges listed in the table above are the highest charges that are applicable for a given PRSA. These may or may not be the charges levied on your account in practice. If you’d like to learn more, the National Pension Helpline has a panel of vetted pension experts who can advise you on PRSA contribution charges.

New Ireland Funds

New Ireland offers a wide range of investment funds that can be accessed via a New Ireland PRSA. The full list of funds can be found in the New Ireland fund centre. In the graphs below, the performance of five New Ireland funds are compared. Each of these funds represents a different New Ireland risk rating from risk rating 6 (high risk) to risk rating 1 (lowest risk). If you’d like to learn more about these funds you can find each of the factsheets attached below:

  • Alternative Energy Fund factsheet here (risk rating 6)

  • Balanced Managed Fund factsheet here (risk rating 5)

  • Income and Growth Fund factsheet here (risk rating 4)

  • Elements Fund factsheet here (risk rating 3)

  • Cash Fund factsheet here (risk rating 1)

Comparing the annual returns of New Ireland funds from 2016-2022

Note: Data up to 27/10/2023

Comparing the cumulative returns of New Ireland funds to 27/10/2023

Note: Data up to 27/10/2023

Comparing the annualised returns of New Ireland funds to 27/10/2023

Note: Data up to 27/10/2023

Standard Life Overview

Standard Life has been helping people in Ireland plan and manage their financial futures since 1834 and are one of Ireland’s leading pension and investment providers.

Insurance-Provider-Standard-Life

Standard Life PRSAs

Standard Life has a number of non-standard PRSAs available. As of 30th October 2023, the PRSAs available are as follows:

PRSA Code Standard or Non-Standard Contribution Charge* Fund Charge*
APP/R/251/NS Non-Standard 0% 1.55%
APP/R/459/NS Non-Standard 0% 1.80%
APP/R/509/NS Non-Standard 0% 2.05%
APP/R/152/NS Non-Standard 2.5% 1.55%
APP/R/771/NS Non-Standard 2.5% 1.80%
APP/R/239/NS Non-Standard 2.5% 2.05%
APP/R/134/NS Non-Standard 5% 1.55%
APP/R/443/NS Non-Standard 5% 1.80%
APP/R/174/NS Non-Standard 5% 2.05%
APP/R/1006/NS Non-Standard 0% 1.80%
APP/R/1007/NS Non-Standard 0% 2.05%
APP/R/1008/NS Non-Standard 0% 2.05%
APP/R/1009/NS Non-Standard 0% 2.05%

*Please note that charges for a PRSA can vary depending on a) Whether you avail of direct or broker distribution b) Whether the PRSA is for an individual or a company c) Whether the individual is investing a regular amount or a once-off lump sum and d) The value of the investments being made. 

For that reason, the charges listed in the table above are the highest charges that are applicable for a given PRSA. These may or may not be the charges levied on your account in practice. If you’d like to learn more, the National Pension Helpline has a panel of vetted pension experts who can advise you on PRSA contribution charges.

Standard Life Funds

Standard Life offers a wide range of investment funds that can be accessed via a Standard Life PRSA. The full list of funds can be found in the Standard Life fund centre. In the graphs below, the performance of five Standard Life funds are compared. Each of these funds represents a different New Ireland risk rating from risk rating 6 (high risk) to risk rating 1 (lowest risk). If you’d like to learn more about these funds you can find each of the factsheets attached below:

  • Standard Life NA Equity Fund factsheet here (risk rating 6)

  • Standard Life Managed Fund factsheet here (risk rating 5)

  • Standard Life Corporate Bond Fund factsheet here (risk rating 4)

  • Standard Life Absolute Return Global Bond Strategies factsheet here (risk rating 3)

  • Standard Life Euro Global Liquidity Fund factsheet here (risk rating 1)

Comparing the annual returns of Standard Life funds from 2019-2023

Note: Data for Standard Life NA Equity Fund year to 30/09/20XX. Data for Standard Life Managed Fund year to 31/08/20XX. Data for Standard Life Corporate Bond Fund year to 31/08/20XX. Data for Standard Life Absolute Return Global Bond Strategies year to 30/06/20XX. Data for Standard Life Euro Global Liquidity Fund year to 30/09/20XX.

Comparing the annualised returns of Standard Life funds

Note: Data for Standard Life NA Equity Fund year to 30/09/20XX. Data for Standard Life Managed Fund year to 31/08/20XX. Data for Standard Life Corporate Bond Fund year to 31/08/20XX. Data for Standard Life Absolute Return Global Bond Strategies year to 30/06/20XX. Data for Standard Life Euro Global Liquidity Fund year to 30/09/20XX.

What The Data Means For You

All of the data used for the funds comparison was sourced from the fund’s factsheet. The fund factsheet is where you’ll find information such as the yearly investment performance of the fund, asset allocation, geographic allocation and the top holdings of the fund. 

This document can be used to compare between funds offered by both the same and different PRSA providers. Instead of aimlessly researching fund factsheets one idea would be to determine what type of fund(s) you’re looking to invest in and compare funds which meet that classification. 

It’s up to you (or your pension advisor) to research all of the relevant factors to consider when choosing your PRSA and PRSA investments. These relevant factors include but are not limited to:

  • The PRSA contribution charge and annual fund charge
  • The underlying PRSA investment selection
  • The additional costs associated with each fund in the investment selection
  • The holdings of each fund in the investment selection
  • The weightings of each holding for each fund in the investment selection
  • The investment strategy of each fund in the investment selection (i.e. active vs. passive management)
  • The relationship between macroeconomic conditions and your portfolio
prsa performance data

Feeling overwhelmed? No problem, you can avail of the National Pension Helpline’s team of vetted pension experts to help you find your perfect pension. 

One question that is undoubtedly on your mind is “what’s the best fund to put my money in?”. Oh if it were only that simple! Similar to how there is no PRSA which is objectively ‘the best’, there is no underlying investment fund which is objectively ‘the best’ either. 

How do we even determine what constitutes the best fund? 

Is it the fund which has provided the strongest investment returns over the past X years?

If so, how can we be certain that that performance will continue, after all, past performance isn’t indicative of future results! 

The truth is that there’s no one size fits all solution or ‘single fund’ that everyone can put their money into while being confident that they’ll yield the best results. Rather, it’s best to find the fund(s) which offer optimal expected returns relative to the investor’s attitude towards and capacity for risk.

A Note On Auto-Enrolment

It’s worthwhile mentioning that if you’re currently in a position where you’ve no pension, the new system of pensions auto-enrolment will soon apply to you. You can read more about auto-enrolment in Ireland here. 

If you are a higher earner (income greater than €42,000 per year) and you’re serious about retirement planning, it’s in both your and your employer’s best interest for auto-enrolment to not apply to you. 

The best way to do that is to get set up with a PRSA before its expected introduction in Q2 2024. The National Pension Helpline has a team of vetted pension experts who can help you get started with your PRSA journey.

prsa performance data

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