KBC Bank has launched a non-standard PRSA pension savings product styled as Lifestyle Extra PRSA, with a choice of eight funds.

KBC says that its ‘ExpertEase’ range of funds aim to provide the optimum balance between upside potential and risk of loss to ensure the investor feels as comfortable as possible under all market conditions.

The standard KBC Lifestyle PRSA, launched earlier this year, has a default investment strategy, ‘MyAutoinvest’, that alters as the saver approaches retirement age. Under this strategy, the younger the saver the higher the allocation of savings to equities, which have the most potential for growth. The older the customer, the larger the allocation to less volatile bonds and cash.

There are two types of PRSAs: standard contracts and non-standard contracts. The latter provide savers with a wider choice of investment fund options but the charges are higher than for standard PRSAs, which account for 75% of the market.

The KBC Lifestyle PRSA fees are 2.5% for each contribution made and an 0.9% annual fund management fee. For the non-standard Lifestyle Extra PRSA, the contribution fee is 2.5% and annual charge ranging from 0.50% to 1.45% depending on the selected fund.

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KBC customers can activate a PRSA through the KBC app, with the option to increase, decrease or pause contributions while reviewing their fund performance in real time.

Branch manager John Gethin (pictured) said: “Last May we launched a truly innovative and simple pension proposition, different to anything else in the Irish market. Today we launch our second product, KBC Lifestyle Extra PRSA. 

“Usually a few short questions determine an investor profile. However, we don’t believe in a one-size-fits-all approach, which is why our risk profiler assesses your attitude to risk and reward but also how you might react to changes in markets and how that could cause your investment to rise and fall. 

“Through this unique innovation, KBC customers can remain within their own investment comfort zone, while enjoying a better, more transparent investor experience.”

Gethin added: “We’ve taken the complexity out of pensions by allowing customers to understand how their fund works in real time so that they can take full control of their financial future. Since we launched in May over half of our customers have made changes to their account themselves – increasing, decreasing, pausing, and topping up their funds – based on their individual circumstances."

PRSAs are the preferred pension savings vehicle for employees and self-employed individuals who do not belong to company pension schemes, and there are currently c.300,000 PRSA contracts, according to the Pensions Authority.