If you're self-employed in Ireland — sole trader, professional contractor, limited-company director — your pension choices are different from (and often better than) an employed person's. Here's the practical map.
The Three Main Options
1. PRSA (Personal Retirement Savings Account)
The go-to for most sole traders and self-employed individuals. Flexible, portable, available from all 5 major providers. Tax relief up to the age-based cap (15% under 30, scaling to 40% at 60+).
Best for: sole traders, freelancers, professionals paying Income Tax on profits.
2. Personal Pension (Retirement Annuity Contract / RAC)
Legacy product — was the main self-employed pension before PRSAs took over in the 2000s. Still available from some providers. For most new contracts, a PRSA is the better choice.
Best for: people who already have a legacy RAC and want to keep contributing to it for continuity.
3. Executive Pension (for limited-company directors)
If you operate through a limited company (typical for IT contractors, consultants, and higher-earning professionals), an Executive Pension is almost always the highest-value option. Key differences:
- The company contributes on your behalf, not you personally
- Company contributions are a deductible business expense — reducing the company's Corporation Tax bill
- Higher contribution limits apply — you're not bound by the personal age-based caps in the same way; Revenue Maximum Funding rules apply based on salary, service and pension size target
- No USC or employee PRSI on the contribution
Best for: limited-company directors and contractors, especially those who've built up retained profit in the company.
Which Should You Use?
| Situation | Best fit |
|---|---|
| Sole trader / self-employed individual | PRSA |
| Freelancer with a few clients, not incorporated | PRSA |
| Limited-company director, single-director company | Executive Pension |
| Partner in a partnership | PRSA (partnership treated like sole trader for tax) |
| Freelancer considering incorporating | Speak to advisor before incorporating — Executive Pension economics may tip the decision |
How Much Can You Contribute?
For a PRSA (sole trader / self-employed)
Use the age-based cap table — 15% under 30, scaling to 40% at 60+, applied to earnings capped at €115,000.
For an Executive Pension (limited-company director)
Revenue Maximum Funding rules allow much larger contributions based on salary, service and final-pot targeting. A 45-year-old contractor on €80,000 salary with a reasonable service record could often see Revenue maximum contributions of €40,000–€60,000/year through an Executive Pension, well beyond what a personal PRSA would allow.
Specifics require actuarial calculation by your pension advisor.
When to Involve an Advisor
Honestly, almost always for self-employed pension setup. The tax economics move by multiples depending on whether you're incorporated, your salary level, your retained profit, and your timeline. A good advisor pays for themselves several times over in the first year.
Self-employed pension review — free
An advisor can look at your full situation (sole trader vs incorporated, salary level, retained profit) and map the best pension structure.
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