Plea to make PRSA payouts tax-free

Insurance brokers have called on the Government to make payouts from Personal Retirement Savings Accounts (PRSAs) totally tax-free on maturity, up to €30,000 per annum, as an incentive to boost pension uptake.

The Professional Insurance Brokers Association said the minister should use the Budget to signal his intention to introduce legislation to make the necessary changes.

At present, only 25% of the lump sum on maturity of PRSAs is tax-free.