Irish Pension Types — A Clear Comparison

Quick Comparison

Type	Best for	Tax relief	Flexibility
PRSA	Self-employed, job switchers, anyone without an employer scheme	Yes, up to age-based cap	High — portable between jobs
Occupational pension	Employees of companies that offer one	Yes	Lower — employer-specific
Personal pension	Self-employed (historical — PRSA usually better now)	Yes	Medium
My Future Fund (auto-enrolment)	Default for eligible workers without a pension	Structured differently (state top-up instead)	Low — limited options
State pension (contributory)	Everyone meeting PRSI record	N/A — it's a state benefit	N/A

PRSA (Personal Retirement Savings Account)

A PRSA is a pension contract between you and a provider, portable from job to job. It's the most flexible Irish pension option for individual investors.

• 5 major providers: Aviva, Irish Life, Zurich, Standard Life, New Ireland
• Two types: Standard PRSA (cap on charges, simpler investment options) and Non-Standard PRSA (wider investment choice, no charge cap)
• Tax relief: on contributions up to age-based percentage of earnings (see tax relief guide)
• Access: from age 60 typically, or 50 if you stop working in that employment

Source: Citizens Information — PRSAs and Pensions Authority PRSA hub.

Occupational Pensions

A pension scheme run by (or on behalf of) your employer. Two main varieties:

• Defined Contribution (DC): you and your employer contribute; what you retire on depends on the fund value. Most common today.
• Defined Benefit (DB): you get a guaranteed income based on service and final/average salary. Rarer for new entrants, still dominant in some public-sector roles.

If your employer offers a matching contribution, this is usually the best-value pension you'll ever get — the employer match is effectively free money.

Personal Pensions

Historically the main option for self-employed people before PRSAs became widespread. Still available but largely superseded by PRSAs for new contracts. If you already have one, review charges against a PRSA alternative — the PRSA charge cap may save you money.

Self-Employed Options

If you're self-employed (sole trader, professional contractor, limited company director):

• Sole trader / self-employed individual: PRSA is almost always the first answer. Contributions are tax-relieved up to the age-based cap.
• Limited company director: you can use an Executive Pension — the company contributes on your behalf, which is deductible as a business expense. Higher contribution limits than personal tax relief would allow.
• Professional contractors (IT, consulting): the Executive Pension is often the highest-value option by a wide margin. Speak to an advisor before incorporating.

State Pension (Contributory)

The basic state old-age pension is currently approximately €277.30 per week (around €14,400/year). It's contributory — you earn entitlement through PRSI contributions over your working life. It is the foundation, not the full solution.

• Qualifying age: 66
• Requires minimum number of PRSI contributions
• Check your PRSI record via MyWelfare

For most people, the state pension covers basic living costs. Most comfortable retirements require private pension income on top.