Personal pension
A personal pension is a personally owned pension, held in your name. A personal pension is suitable for anyone saving for their retirement. It is mainly suited to those who are self-employed, or whose employer does not offer a pension scheme. only you can make contributions to a personal pension.
How much should I contribute? It's one of the most common questions people ask. While there's no minimum amount, in order to claim tax relief on your premiums the maximum amount you can contribute and receive tax relief depends on your net relevant earning and age. See the limits below
| 29 or younger | 15% of net relevant earnings * |
| 30 - 39 years | 20% |
| 40 - 49 years | 25% |
| 50 - 54 years | 30% |
| 55 - 59 years | 35% |
| 60 + | 40% |
You can choose from a wide range of investment funds, designed to meet your needs and your risk appetite.
On retirement you can take a tax-free lump sum of 25% of your fund, up to a maximum of €200,000.The remainder of your fund can then be invested in an Approved Retirement Fund (ARF) or used to buy an annuity.
PRSA (Personal Retirement Saving Account)
A PRSA is a personally owned pension that lets you save for retirement on your own terms. A PRSA is suitable for company owners, sole traders, employers and employee’s. You and or your employer can contribute into your PRSA. The growth inside a PRSA is tax-free also you and your employer can claim tax relief on contributions paid into your PRSA, up to certain limits .The amount of tax relief you receive on net relevant earnings increases with age see the rates for ages below.
| 29 or younger | 15% of net relevant earnings * |
| 30 - 39 years | 20% |
| 40 - 49 years | 25% |
| 50 - 54 years | 30% |
| 55 - 59 years | 35% |
| 60 + | 40% |
You can choose from a wide range of investment funds, designed to meet your needs and your risk appetite.
On retirement, you can take a tax-free lump sum of 25% of your fund, up to a maximum of €200,000.The remainder of your fund can then be invested into an Approved Retirement Fund ( ARF ) or used to buy an Annuity.
Master Trust
Previously an Occupational Pension scheme or Executive pension.
This pension is suitable for employees and employers. This is set up by your employer and they usually pay a percentage or portion of your salary. Employees can match this amount and also pay in Additional Voluntary Contributions (AVCs). You and or your employer can claim tax relief on contributions paid into your Pension. Also the growth inside a Master Trust is tax free.
You can choose from a wide range of investment funds, designed to meet your needs and your risk appetite.
On retirement, you can take a tax-free lump sum from your fund, up to a maximum of €200,000.The remainder of your fund can then be invested into an Approved Retirement Fund ( ARF ) or used to buy an Annuity.
Approved Retirement Fund
Once you reach retirement age and you have built up your fund you have a number of options. Take a tax free lump sum, usually 25% of the value of your fund up to a maximum of €200,000.00 and use the balance to invest into an Approved Retirement Fund or purchase an annuity which is a guaranteed income for life.
An Approved Retirement Fund (ARF) gives you more control over how your retirement fund is managed. It is an investment plan with the intention of growing your fund during your retirement years based on your own investment strategy. You can make withdrawals as and when you need to, and use your ARF to provide a regular income. The funds in your ARF are available to your family after your death. You can invest in a range of different investment funds depending on the level of risk you are comfortable with and you benefit from the tax-free growth of these funds. The downside of an ARF is that without careful planning it is possible to drain your fund before you die.
Annuity
This is an alternative to managing your retirement funds in an ARF. Here you use the remainder of your funds after your tax free cash to purchase an annuity. An Annuity guarantees to pay you a secure income for the rest of your life, no matter how long you live. With this option you cannot pass any remaining fund on to your family when you die.
