Personal Pensions

We want to help you choose the right pension for your lifestyle and requirements

There are a number of options open to you depending on your specific circumstances and requirements:-

• Personal Pension Plan
• PRSA Pension
• Retirement Bond
• Executive Pension Plans

Personal Pension Plan

A Personal Pension is a personally owned pension, held in your name. Unlike a company pension plan, where your employer may make contributions to your pension, only you can make contributions to a personal pension.

It is suitable for anyone saving for their retirement and is mainly suited to those who are self-employed, or whose employer does not offer a pension scheme.

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 Annuity or Approved Retirement Fund.

PRSA Pension (Personal Retirement Savings Account)

A PRSA is a personally owned pension that lets you save for retirement on your own terms. You can contribute to it whenever you want and stop making contributions at any time. This plan is for everyone, regardless of employment status. You can take out a PRSA if you’re self-employed, or working for a company.

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 Annuity or Approved (Minimum) Retirement Fund A(M)RF.

If you have taken out a PRSA to make (AVCs) Additional Voluntary Contributions, you must take your benefits from your PRSA in the same way as you take the benefits from the main scheme.

Retirement Bond

A retirement bond lets you take your pension entitlements with you when changing jobs, without having to transfer to your new employer’s scheme.

Executive Pension

This plan is designed for employees and employers in small to medium-sized companies, who wish to save for their retirement. The maximum that can be paid into an executive pension plan, between the employee and employer, depends on the employee’s earnings, service and any benefits from a previous employment. The maximum amount the employee can pay in depends on their age.

On retirement, you can take a tax-free lump sum of either:

• 25% of your fund, or,
• based on salary and service, to a maximum of 150% of salary.

The maximum tax-free lump sum you can take is €200,000.

The remainder of your fund can then be invested in an Annuity or Approved Retirement Fund.