The difference between a PRSA and a Buy Out Bond

The world of pensions can be pretty confusing. There are loads of different pension types and while primarily, they do the same thing i.e. saving for retirement, there are some differences between each plan. When someone leaves employment, two of the options they have is to transfer their benefits to a PRSA or a Buy Out Bond. I look at the differences between the two pensions below.

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Overall, the Buy Out Bond is a low more flexible than the PRSA in that the product provider can set the charging structure as opposed to legislation, which is the case for PRSAs. This means that clients can have bonus allocations paid into their policies or have lower annual management fees.

If you have any questions, please email me directly at steven@bluewaterfp.ie