In Alex's vested PRSA, the ring-fenced portion is €63,500 and the non-ring fenced portion is €100,000. What is the total value of the PRSA?

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Prepare for the Qualified Financial Adviser (QFA) Pensions Exam 2. Test your knowledge with flashcards and multiple choice questions. Review detailed explanations for each question and get ready to succeed!

Multiple Choice

In Alex's vested PRSA, the ring-fenced portion is €63,500 and the non-ring fenced portion is €100,000. What is the total value of the PRSA?

Explanation:
The total value of a vested PRSA is the sum of all its parts, since both the ring-fenced and the non-ring-fenced portions belong to the member and together make up the overall pot. The ring-fenced portion of €63,500 may have access restrictions, but it still counts toward the total value. Add that to the non-ring-fenced portion of €100,000 and you get €163,500. So the total value is €163,500.

The total value of a vested PRSA is the sum of all its parts, since both the ring-fenced and the non-ring-fenced portions belong to the member and together make up the overall pot. The ring-fenced portion of €63,500 may have access restrictions, but it still counts toward the total value. Add that to the non-ring-fenced portion of €100,000 and you get €163,500. So the total value is €163,500.

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