Cathedral Financial Consultants Limited, advising clients since 2003.

Pensions in Ireland

In Ireland, a range of pension options can help you prepare for retirement and protect your financial future. These include the State Pension, which provides a basic government income, occupational pensions set up by employers, and personal pensions that individuals can arrange independently. Each type of pension has its own rules, benefits, and tax advantages. Understanding these options is key to choosing the plan that best supports your long-term retirement goals.

What’s in this guide?

Different types of pensions in Ireland

Occupational / workplace pensions in Ireland

Personal pensions in Ireland

Executive pensions in Ireland

State pension in Ireland

Useful Links / Documents

Relevant articles

Occupational pensions

How to find old pensions

Tracing lost pensions

Personal pensions

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Different types of pensions in Ireland

When planning for retirement, many people ask what are the different types of pension plans available and which is the best type of pension to meet their needs. In Ireland, there are several different types of pensions to choose from, including the State Pension, occupational pensions, and personal pension plans. Each of these types of pension schemes works in its own way, with unique rules, benefits, and tax advantages.

Understanding the different types of pension plans and the various types of pension funds is essential for making informed decisions about your future. If you’ve ever wondered what types of pensions are there or want to compare the different types of pension schemes in Ireland, this guide will walk you through the key options so you can confidently plan for your retirement.

Occupational / workplace pensions in Ireland

Occupational Pensions in the Private Sector

In Ireland’s private sector, there are two main types of occupational pensions you can access:

Company Pension Scheme – a workplace pension set up and run by your employer.
Personal Retirement Savings Account (PRSA) – which your employer must make available if no company pension scheme is in place.

Company Pension Scheme

A defined contribution company pension—often called an occupational pension—is established by your employer to help you save for retirement. Typically, employees contribute a fixed percentage of their salary and can adjust these contributions as their circumstances change. The goal is to build a fund that will provide a reliable income in later life.

One of the biggest benefits of a company pension is that many employers also contribute to the plan, giving your retirement savings an extra boost and helping you grow your pension fund faster.

Example

Mary works at a marketing firm and earns €60,000 per year. Her employer matches pension contributions up to 5%.

Mary contributes 5% of her salary (€250) into her pension each month.
Her employer adds another 5% (€250).

This means €500 is invested in Mary’s pension every month.
Thanks to 40% tax relief on her personal contribution, Mary saves €100 in tax each month.
Net cost to Mary: just €150 for a €500 monthly pension contribution.

Personal Retirement Savings Account (PRSA)

A Personal Retirement Savings Account (PRSA) is a flexible, individually owned pension you can take with you if you change jobs.
You can contribute weekly, monthly or annually, and you’re free to pause or adjust contributions at any time.

Tax relief: Contributions qualify for income-tax relief (within Revenue limits).
Tax-free growth: Any investment growth inside the fund is tax-free.
Retirement lump sum: At retirement you can usually take a tax-free lump sum, subject to Revenue rules and lifetime limits.

Pension Contribution Limits & Tax Relief

Your age and earnings determine how much you can contribute to your pension and still receive income-tax relief.
Relief is capped at a maximum salary of €115,000.
If you earn above this, you can only claim relief on contributions calculated up to €115,000.

Professional athletes have a higher fixed limit: 30% of earnings, regardless of age.

Maximum Pension Contribution Eligible for Income-Tax Relief

Age Band	Maximum % of Earnings Qualifying for Relief
Under 30	15%
30 – 39	20%
40 – 49	25%
50 – 54	30%
55 – 59	35%
60 and over	40%

These limits are set by Revenue and apply to all approved Irish pension arrangements, including PRSAs and company pension schemes.

Personal pension plans (PPP) in Ireland

Personal Pension Plans (PPPs) are typically provided by insurance companies and can also be set up through MyPension. With so many options available, choosing the best type of pension plan can feel overwhelming. That’s why our advisors are here to help you select a plan that matches your retirement goals.

When you make contributions to a PPP, the insurance company invests your money across one or more funds with the aim of generating long-term growth. These investments may include company shares, government bonds, and property.

Charges to Be Aware Of

Insurance companies apply a range of charges to PPPs, which are deducted from your contributions or from the value of your fund. Typical charges can include setup fees, fund management fees, allocation rates, bid/offer spreads, and fund switching fees. While these costs can affect the overall value of your pension, they are always outlined in the plan’s Key Features Document. Your Financial Advisor can help you calculate the impact of these charges and give you a realistic estimate of returns based on projected annual growth.

When You Can Access Your Pension

You can draw on your PPP savings in the following situations:

Between ages 60 and 75: Access your funds anytime from age 60 up to 75 without needing to retire or stop working.
Serious ill health: If you become permanently unable to work due to serious illness, you may be allowed to access your pension at any age—subject to Revenue approval and only in exceptional cases.
From age 50 for certain occupations: Some professions—such as professional athletes (for example golfers, rugby players, or jockeys)—may allow early pension access from age 50 to reflect earlier retirement patterns.

When you begin taking benefits, you can normally withdraw a tax-free lump sum of 25% of your fund, up to a lifetime maximum of €200,000. The remainder can then be managed in several ways.

Options at Retirement

Approved Retirement Fund (ARF): Invest the balance of your pension in an ARF, allowing your savings to continue growing tax-free while giving you flexible access to your funds.
Annuity: Purchase an annuity to receive a guaranteed, regular income for life or for a specified period, depending on the type of annuity chosen.
Taxable Lump Sum: Take the remaining balance as a lump sum, which will be treated as taxable income in line with current Revenue rules.

Executive pensions in Ireland

Executive Pensions in Ireland

Executive pensions are company-sponsored retirement plans designed specifically for senior executives and business owners. Set up under trust—typically with the employer acting as trustee—these pensions allow both the employer and the executive to make contributions. They provide a highly tax-efficient way to build retirement savings, with flexible contribution limits that make them ideal for those seeking a tailored retirement strategy.

Key Benefits of an Executive Pension

An executive pension offers several advantages over standard pension schemes:

Higher contribution limits: Contribute a larger share of income while still receiving full tax relief.
Employer contributions: The company can make contributions on behalf of the executive without incurring PRSI charges.
Early access to benefits: Pension benefits can be drawn from as early as age 50.
Larger tax-free lump sum: At retirement, up to 25% of the total fund can be taken as a tax-free lump sum, compared with just 20% in standard pension schemes.

These features make executive pensions an excellent choice for senior executives and owner-directors who want flexibility and efficiency in planning for retirement.

Who Can Set Up an Executive Pension?

Company Directors: Both owner-directors (those holding a significant share in the company) and non-owner directors may qualify.
Senior Executives: Key employees in senior managerial or executive roles—even if they are not shareholders—can also be eligible.
Employees with a Contract of Employment: The individual must have a formal employment agreement with the company, either permanent or fixed-term.
Directors with Company Control: Directors owning more than 20% of the business may need Revenue approval to make large contributions or to access benefits early.

Who Is Not Eligible for an Executive Pension?

Self-employed individuals: Those without a formal company structure cannot set up an executive pension. Instead, they may consider alternatives such as a Personal Pension or a PRSA (Personal Retirement Savings Account).
Non-executive employees: Staff without executive status, or those already covered by a general occupational pension scheme, are not eligible for the specific benefits of an executive pension.

State pension in Ireland

Eligibility for the State Pension (Contributory)

To qualify for the State Pension (Contributory) in Ireland, you must meet specific PRSI contribution requirements:

Minimum contributions: You need at least 520 paid PRSI contributions—the equivalent of 10 years—from the time you first entered insurable employment up to the end of the tax year before you reach pension age.
Compulsory vs. voluntary: Of these, a minimum of 260 contributions must be compulsory (paid). The remaining 260 may be voluntary contributions.
Additional credits: Your pension rate may be increased by including credited contributions or care credits for time spent in caring roles, provided these periods are less than 20 years.
Age-related rule: To claim the pension at age 66, you must have started insurable employment before turning 56.

You can view your complete social insurance record—including paid, voluntary, and credited contributions—on your Contribution Statement, which provides a full overview of your PRSI history.

For tailored advice on tax relief and pension planning, consider speaking to one of our qualified financial advisors, today.