Pensions · Personal
Personal Pensions in Ireland — Plain English, Real Advice
Whether you’re starting your first pension, consolidating old ones, or trying to make sense of PRSAs vs personal pensions, we’ll explain it clearly and help you choose the right plan for your goals.
Last reviewed by Debbie Cheevers, QFA, RPA · 30 June 2026
Who this is for
PAYE employees
You don’t have a workplace pension (or yours is small) and want to save tax-efficiently for retirement on your own terms.
Self-employed (sole traders)
You’re paying income tax personally and need a pension that gives you tax relief now and flexibility later. Company directors — see Business Owner Pensions.
People consolidating old pensions
You have one or more pensions from previous jobs and want to bring them together, reduce charges and take control.
How personal pensions work in Ireland
The basics in 60 seconds
A personal pension is a long-term, tax-relieved savings plan. You contribute regularly (or in lump sums), the money is invested in funds you choose with us, and from age 60 (or 50 in some cases) you draw it down as a tax-free lump sum plus an income for life or an ARF.
You get income tax relief on your contributions at your marginal rate — up to 40% for higher-rate taxpayers — within Revenue limits.
PRSA vs Personal Pension Plan
Both give the same tax relief. The main differences:
- PRSA — portable between employments, simpler charges, broader fund choice with many providers.
- Personal Pension (RAC) — older structure, still useful in specific scenarios.
For most people starting today, a PRSA is the right answer. We’ll confirm which suits your circumstances.
Tax relief — the headline benefit
Income tax relief on contributions at your marginal rate, within Revenue age-related limits.
Of net relevant earnings you can contribute with tax relief, rising with age.
Current earnings cap on contributions eligible for tax relief.
Age-related limits: under 30: 15%, 30–39: 20%, 40–49: 25%, 50–54: 30%, 55–59: 35%, 60+: 40%. Limits subject to change by Revenue.
Old pensions from previous jobs
If you’ve worked for more than one employer, you may have pension benefits sitting in old occupational schemes. You can leave them where they are, but you often have more control by moving them into a Personal Retirement Bond (PRB) in your own name.
A PRB (sometimes called a Buy-Out Bond) holds your preserved benefits as a single-member contract that you own. You choose the provider, the funds, and the retirement timing within Revenue rules.
Why move an old pension into a PRB?
- One statement instead of several.
- Modern fund choice and lower charges in many cases.
- Independent of any former employer – you control it.
- Flexible retirement timing (within Revenue rules).
PRBs are relevant to employees, the self-employed, company owners and directors who have benefits from previous employments. We’ll review each old scheme before recommending a transfer – some have valuable guarantees that are worth keeping.
Our four-step advice process
- 1
Free initial meeting
30 minutes by phone or video. We listen, you ask questions. No pressure, no fee.
- 2
Fact-find & goals
We map your income, existing pensions, target retirement age and the lifestyle you want.
- 3
Recommendation
A written plan with provider, fund choice, contribution level and a clear reason for each.
- 4
Ongoing reviews
Annual reviews keep your plan on track as your life, income and the markets change.
Frequently asked questions
How much should I contribute to my pension?
A common rule of thumb is “half your age as a percentage of income” — so a 30-year-old contributes 15%, a 40-year-old 20%, and so on. The earlier you start, the less you need to put in each month to reach the same retirement income.
Can I transfer old pensions into a new plan?
Usually yes. We’ll review each existing pension’s charges, fund performance and any guarantees before recommending a transfer. Sometimes staying put is the right call — we’ll tell you either way.
What happens at retirement?
You can typically take 25% as a tax-free lump sum (up to €200,000) and use the balance to provide an income via an Annuity or ARF. We guide you through this decision well before you retire. See our retirement planning guide.
What does advice cost?
Initial consultations are free. Where you proceed, we’re paid via a transparent commission from your provider or an advice fee — we’ll always show you the cost and the alternative before you decide.
Is my pension protected if a provider fails?
Pension assets are held separately from the insurance company’s balance sheet by trustees, and the providers we work with are all regulated by the Central Bank of Ireland.
Advice across Ireland’s six leading life & pension providers
She listened, explained things clearly, and the follow-up was a clear, detailed summary with practical next steps.
Ready to take control of your pension?
Book a free, no-obligation 30-minute consultation with a Qualified Financial Adviser.