vivisor Insights
Pensions · 9 min read
Pensions in Ireland: PRSA vs Occupational Schemes Explained
Irish pensions come in several flavours and the jargon makes it harder than it needs to be. This guide explains the main pension types in plain English, how tax relief actually works, and what an advisor can do that you can't do alone.
The four pension types you'll hear about
PRSA (Personal Retirement Savings Account) — a personal pension you own. Fully portable between jobs, flexible contributions, regulated charges.
Occupational pension — set up by your employer. Often includes employer contributions / matching, which is essentially free money.
PRB (Personal Retirement Bond / Buy-Out Bond) — holds the value of an old occupational pension after you leave that employer.
ARF (Approved Retirement Fund) — what many people move their pension into at retirement to draw an income while staying invested.
Tax relief — the biggest reason to use a pension
Personal contributions get income tax relief at your marginal rate (20% or 40%).
Age-based limits: Under 30 — 15% of earnings · 30–39 — 20% · 40–49 — 25% · 50–54 — 30% · 55–59 — 35% · 60+ — 40%.
Earnings cap of €115,000 applies for tax relief purposes.
Employer contributions are on top and don't count towards your personal age-related limit.
Investment growth inside the pension is tax-free.
At retirement you can usually take 25% as a tax-free lump sum (capped at €200,000 tax-free; next €300,000 at 20%).
PRSA vs occupational pension — quick comparison
Ownership — PRSA is yours; occupational is held in trust by the scheme.
Employer contributions — usually only with occupational schemes (though employers can now also contribute to PRSAs without BIK in many cases).
Flexibility — PRSA wins on flexibility and portability; occupational schemes can offer better default investment design and group rates.
Charges — PRSA Standard products are capped (max 5% on contributions, max 1% AMC); occupational charges vary widely — always check.
Access age — generally 60 for PRSAs (50 in some cases); occupational schemes often allow access from 50 if you've left service.
Changing jobs — what to do with the old pension
Leave it where it is — simple, but it stays under the old scheme's rules and charges.
Transfer to a Personal Retirement Bond (PRB) — your own bond, you choose the investment strategy.
Transfer to your new employer scheme — keeps everything in one place if the new scheme accepts transfers.
Transfer to a PRSA — flexible, portable, but check the transfer rules (some older schemes restrict this).
Get advice before moving — exit penalties, transfer values and guaranteed annuity rates can be worth thousands.
What an advisor adds (vs DIY)
Picks the right wrapper for your circumstances (PRSA / PRB / Executive Pension / Master Trust).
Designs the investment strategy to match your timeframe and risk appetite.
Maximises tax relief — including back-dated contributions before the October tax deadline.
Monitors fund performance and rebalances over time.
Plans the drawdown phase (ARF vs annuity vs phased) and the tax implications of each.
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For information purposes only. vivisor does not provide financial advice.