Take-up of PRSAs continues to slow

THE take-up of Personal Retirement Savings Accounts (PRSAs) continues to slow down, according to figures published last week by the Pensions Board, the agency charged by the government with boosting pension coverage.

Only 4,500 new PRSAs were taken out in the three months to March, bringing the total to almost 51,000. This compared unfavourably with the 9,000 opened in the three months to December and almost 8,000 opened in the first three months of 2004.

The performance came on the back of disappointing sales in the crucial October to December period, which is considered critical in the industry as it coincides with the end of the tax year, which provides an additional motivation for potential customers to sign up. Awareness of the tax breaks associated with pensions is considered to peak around this period.