Moira, aged 48, is in non-pensionable employment. A Standard PRSA is likely to be more suitable for her than a Retirement Annuity Contract because with a Standard PRSA she can:

Moira, aged 48, is in non-pensionable employment. A Standard PRSA is likely to be more suitable for her than a Retirement Annuity Contract because with a Standard PRSA she can:

• A. Add life cover to the contract
• B. Get more tax relief
• C. Take early retirement benefits from age 50 onwards
• D. Take more of her retirement fund as a tax-free lump sum

Answer: (C)

The main point here is flexibility in when you can access the funds. A Standard PRSA is designed to let you access retirement benefits earlier, such as from age 50 onwards, which is particularly useful if you’re not in a pensionable workplace scheme. A Retirement Annuity Contract, on the other hand, is typically geared toward providing a pension income from a designated retirement age and doesn’t offer the same early-access options. So the statement that a Standard PRSA allows taking early retirement benefits from age 50 is the key advantage for Moira. Features like adding life cover or the level of tax relief aren’t unique to PRSAs, and the lump-sum provisions aren’t the deciding factor here; the early-access flexibility is what makes the PRSA more suitable in this scenario.

The main point here is flexibility in when you can access the funds. A Standard PRSA is designed to let you access retirement benefits earlier, such as from age 50 onwards, which is particularly useful if you’re not in a pensionable workplace scheme. A Retirement Annuity Contract, on the other hand, is typically geared toward providing a pension income from a designated retirement age and doesn’t offer the same early-access options. So the statement that a Standard PRSA allows taking early retirement benefits from age 50 is the key advantage for Moira. Features like adding life cover or the level of tax relief aren’t unique to PRSAs, and the lump-sum provisions aren’t the deciding factor here; the early-access flexibility is what makes the PRSA more suitable in this scenario.