What are the MAXIMUM permitted charges which can be levied on a Standard PRSA?

• A. 1% of each contribution, and 1% of the fund value per annum
• B. 1% of each contribution, and 5% of the fund value per annum
• C. 5% of each contribution, and 1% of the fund value per annum
• D. 5% of each contribution, and 5% of the fund value per annum

Answer: (C)

The charges on a Standard PRSA are built from two parts: a charge when you contribute and an ongoing charge based on the fund value. The rules cap these at 5% of each contribution and 1% of the fund value per year. That means you could face up to 5% upfront from each contribution, and up to 1% each year on the value of the fund. These limits are designed to protect savers by limiting how much is taken at the start and how much is taken annually, preserving more for growth over time. Providers can charge less, and the annual charge is applied to the current fund value, so it moves with the fund.