Private Pension Calculator

Calculate retirement income from private pension arrangements including PRSAs and personal pensions

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Understanding Private Pensions

Key information about private pension arrangements in Ireland

PRSA (Personal Retirement Savings Account)

A flexible, portable pension plan that you can take with you when changing jobs. Available to everyone, including the self-employed and employees without pension schemes.

Personal Pension Plans

Individual pension plans typically used by self-employed people or those not covered by occupational schemes. Offer tax relief on contributions and tax-free growth.

Tax Relief on Contributions

You can get tax relief on private pension contributions up to certain limits based on your age. The maximum is 40% of earnings for those aged 60 and over.

Retirement Options

At retirement, you can typically take up to 25% of your fund as a tax-free lump sum (up to €200,000). The remaining fund can be used to buy an annuity or transferred to an ARF.

Investment Growth

Private pensions grow tax-free, making them very tax-efficient. Investment options typically include cash, bonds, property, and equity funds with varying risk levels.

Charges and Fees

Private pensions typically have management charges (0.5-2% annually) and may have entry/exit charges. Compare charges across providers as they can significantly impact your final fund value.

Frequently Asked Questions

Common questions about private pensions in Ireland

What is the maximum tax-free lump sum?

The maximum tax-free lump sum is €200,000. Any amount above this is taxed. You can typically take up to 25% of your fund as a lump sum, but the tax-free amount is capped at €200,000.

What happens to my pension if I die before retirement?

The value of your pension fund is paid to your estate. If you have a personal pension or PRSA, the full fund value is paid out, typically free of inheritance tax if it goes to your spouse.

Can I access my private pension early?

Generally, you can access private pensions from age 50, but this depends on your specific plan. Early access may have tax implications and could reduce your retirement income.

What is an annuity?

An annuity is a financial product that provides a guaranteed income for life. You use your pension fund to buy an annuity from an insurance company, which then pays you a regular income.

Should I choose an annuity or ARF?

This depends on your circumstances. Annuities provide guaranteed income but less flexibility. ARFs (Approved Retirement Funds) offer more flexibility but carry investment risk and require careful management.