This depends on the age you start contributing, whether your employer also contributes to your pension plan and what amount of pension income you want for your retirement. See our online pension calculator which will give you some idea of the amount required.
Impartial advice for your financial future
Personal Retirement Savings Accounts (PRSA)
An easy to understand pension product open to everybody, both self employed and employed individuals. There are two types of PRSA; Standard and Non-Standard. Standard PRSAs have set maximum charges and are an attractive product for those looking to start up a pension plan with lower charges.
A Durable and Flexible Pension
A PRSA is portable so you can take it with you throughout your working career. This means you don't have to change plans if you change your job. Like a personal pension, it is used to build up a fund for when you retire, however unlike a personal pension, both you and your employer can make contributions to a PRSA plan. With a PRSA tax relief is available up to certain limits offering a significant saving on your tax bill.
Did you know?
- Under certain circumstances you can transfer your old company pension schemes into a PRSA which means they are under your control and ownership
- At retirement, 25% of the fund is available to you as a tax free lump sum
- PRSA AVCs can be used to top up your pension fund independently of your scheme - and probably offer better value than your incumbent AVC provider
Get a Pension Quote
Frequently Asked Questions
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How much should I save for my pension?
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Do I need Additional voluntary contributions (AVCs)?
Additional voluntary contributions (AVCs) are extra payments you choose to make to your pension fund. You may need them if you find out that your existing contributions may not be enough to give you your expected income at retirement.
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What happens to my pension if I die before I retire?
This depends on whether you have an employer pension plan, a personal pension plan or a personal retirement savings account (PRSA). If you have an employer pension plan there will be rules about what the fund will pay out to your dependants (people who rely on you for financial support) if you die ‘in service', (that is, while you are still employed). These are called ‘death-in-service' benefits. Death in service benefits allow for a tax free lump sum and an annuity to be paid to a surviving spouse. The maximum tax free lump sum payable is 4 times your salary. Ask your employer for information about what your plan provides. You should take this into account when deciding how much life insurance cover you need, or when making a will.
If you have a personal pension plan or PRSA, the value automatically passes to your estate for the benefit of your dependants if you die before you retire. You need to consider the value of your pension plan when deciding how much life insurance cover you need, or when you make a will. -
What pension do I get if I retire early due to ill health?
Some employers provide an ill-health pension for their employees if they have to retire early because of illness. If your employer does not provide these benefits, you may want to consider taking out some form of salary protection insurance such as income protection insurance. This type of policy is not the same as a pension but it can replace part of your income for as long as you are unable to work due to ill health.
If you have a personal pension plan or PRSA and If you become permanently unable to work due to ill-health and have to retire, you can immediately draw on your pension plan, no matter how young you are.
As with voluntary early retirement, the amount you get will be much less than if you contributed up to your original expected retirement age because you have paid fewer contributions and these have been invested for a shorter time. -
I've just been made redundant. What are my options with my pension?
Whenever you leave employment through voluntary means or by redundancy, you will usually receive a letter from your former employer outlining your options concerning your pension. You should study them carefully as this is an important decision for you to make. The options open to you include transferring your fund to a new employer's scheme if you have found a new position, transfer it to a Buy Out Bond which transfers your fund from your former employer's responsibility and into yours or transfer it to a PRSA. You can also choose to leave the fund under the care of your former employer but unless it is a Defined Benefit Scheme, you should give careful consideration to moving it. In Ireland there is no pension protection scheme and pension schemes may become insolvent leaving you with no pension. It is important that you consider all of the facts carefully if you find yourself in this position.
