Self-Employed Pensions

We help business owners become more tax-efficient.

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Pension from a previous employment

What we do

Ensure you choose the correct scheme for your situation
Maximise tax-relief
Our advisors have over 2,000 clients across Ireland


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Pension tax incentives for the self-employed

Tax free

Tax Relief

Any contributions you make are discounted by the highest rate of income tax you pay up to 40% off.

Tax free growth

Tax Free Growth

Your money gets the room it needs to grow since no CGT, DIRT or income tax is applied to any growth.

Tax free lump sum psl

Tax Free Lump Sum

You can take up to 25% of your fund as tax free cash when you reach 60 up to a maximum of €200,000.

As a self-employed person, you have two potential options regarding a pension.

personal pension

Personal Pension

Privately owned pension in your own name
Discuss a personal pension


Personal Retirement Savings Account
Discuss a PRSA

An Introduction to Self Employed Pensions

Being self-employed, you are putting your blood, sweat, and tears into making your company successful.

Therefore, it can be difficult to juggle everything while also planning for retirement.

According to the Central Statistics Office, only 6 in 10 of the Irish workforce have some sort of private pension.

This includes the self-employed and company directors. As a result, we can assume the remaining 40% of the population plan to live on the €248 a week State pension.

Will this be enough to fund the lifestyle you would like in retirement?

A pension is a tax-efficient way of saving for the future.

Table of Contents

Why start a pension?

If the thought of potentially living off €248 per week alone is not enough to push you towards starting a pension, let us look at some of the benefits.

We are living longer, healthier lives. Therefore, if you want to enjoy your retirement, you will need a larger sum of money.

The government does not want everyone to depend on living solely off the State pension. Some of the benefits of contributing to a pension are:

  • Tax relief – When contributing to your pension you will receive tax relief relevant to your tax bracket. Let us say you pay 40% income tax. Therefore, for each €1 you contribute, you will receive 40 cents back.
  • Tax-free growth – The money you contribute to your pension will grow free of tax.
  • Tax-free cash – When you retire, currently you can withdraw 25% (up to a max of €200,000) of your fund completely free of tax.

These are just some of the benefits associated with having a pension. It will help give you peace of mind knowing you are planning for your future.

Personal Pension

A Personal pension is a privately owned pension plan which will be held in your name. It will differ from company pension plans where an employer can also contribute.

This plan is a popular choice among the self-employed. However, as per scheme rules, there are maximum limits on contributions.

You will be eligible to make contributions and receive relief at your marginal rate of either 20 or 40%. The amount you can contribute is related to your age.

We have broken down the contributions below:

Age Max Contribution Allowable
29 or younger 15% of net relevant earnings
30-39 years of age 20%
40-49 years of age 25%
50-54 years of age 30%
55-59 years of age 35%
60+ years of age 40%

These percentages are to a maximum of €115,000 per year.

What is a Personal Retirement Savings Account – PRSA

A PRSA is a long-term personal pension arrangement. As per the table above, a PRSA will enable you to receive tax relief on contributions to a certain limit.

PRSA’s are an attractive pension arrangement option due to their flexibility. First introduced to Ireland under the Pensions (Amendment) Act, 2002.

You can contribute to your PRSA arrangement either through a lump-sum or through regular monthly contributions.

Within PRSAs they can be broken down into two categories, a standard PRSA and a non-standard PRSA. The main difference between the two products comes down to charges and investment options.

Below we will look at both in more detail.

Non-standard vs Standard PRSA

Standard PRSA – The main differentiating factor between the two charges. In a standard PRSA, you cannot be charged for than 5% on your contributions. There is also a maximum annual management charge (AMC) of 1%.

Non-Standard PRSA – This differs mainly in two aspects. There is essentially no limit regarding charges. However, you can access a wide range of asset classes and fund choices.

At what age can I draw down my pension?

As we know, the age from which you can access your pension will differ from scheme to scheme. Below we breakdown down the scheme and what age you can access your funds.

PRSA – From age 60. However, this may be reduced if you are an employee who is leaving service.

Personal Pension – This arrangement can be accessed from age 60 if you are ceasing employment.

If you would like to assess your options regarding any of the above schemes, book your complimentary consultation.

Speak to a pension transfer expert

Our advisors work alongside Irelands leading life insurance companies. Ensuring you get access to funds that suit you best.

With the right advisor by your side, you can enjoy the retirement lifestyle you deserve.

Self Employed pensions can be a difficult area to navigate. If you are considering starting your pension it is important you seek professional advice before making any decisions.

Contact our team today on 01- 890 3518 or email us at

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