Directors Pension for Business Owners

The director’s pension for business owners in Ireland. As a business owner, leaving your company with money in your pocket is essential.

If you wish to maintain the same standard of living when you retire, investing in a pension is a smart choice.

A director’s pension is one of the best ways to save money and increase your wealth while you’re working.

What is a directors pension?

A directors pension is a pension dedicated to executives or key employees of a company. The pension is set up by the company. The individual director can also make contributions to the pension.

Putting your money in a director’s pension allows you to save for your retirement in a tax-efficient way. You will legally turn your company’s profit into your personal wealth.

This type of pension facilitates the transfer of money from your company’s bank account into your long-term savings.

How does it work?

When your business is making a profit and you pay that back into your personal salary you typically pay up to 40% on income tax per year. This is assuming your income is over €35,300 (based on a single person). On top of that, you have other charges such as dividends tax, capital gains tax and many more.

However, by investing this money into a director’s pension you will be able to avoid many of these charges.

Director Pension

Benefits for the directors

The first saving you make is on income tax. Indeed, instead of taking your profit as income and therefore paying 40% Income tax, you put it in your pension.

In addition, at retirement, you will be able to take and benefit from the lump sum of money accumulated over time. And that is fully or partially tax-free.

One of the other advantages of the director’s pension is the growth of your investment. Any growth on the investment will be tax-free, and you will be able to enjoy the full amount of money.

Benefits for the company

As a company,  by contributing to your director’s pension you are reducing profits in the business. This will reduce your corporation tax rates. Plus, the contributions that you make are not subject to a benefit-in-kind charge.

Also, when directors contribute to the fund, you are exempted from paying PRSI.


  • From age 50 onwards, you can access your pension on early retirement.
  • You can only access the fund at retirement.
  • You can’t borrow money from the pension.
  • You can’t use the pension to fund your business.

How we can help

As a financial broker, we will guide you in the process and make sure that you make the best decision for your future. Thanks to our expertise, we will find the best pension plan for you.

Our financial advisors will select pension options that match your financial situation and your long-term goals. Get in touch and let us set up your pension.

Debbie Cheevers

Debbie Cheevers

Qualified Financial Advisor

Debbie was born in Dublin and graduated from NCAD with a degree in Visual Communication. She brings a strong customer services background to Greenway.

Debbie qualified as APA in 2017 and a fully qualified financial advisor (QFA) in 2018.

She believes that product knowledge is key to helping customers make the right choices.