Personal pensions

A personal pension is a retirement savings plan in which you make contributions either on a regular basis or a once off lump sum. These contributions are then invested, for example in the stock market, with the aim of building up your pension pot so you have an income when you retire.

There are two main types of personal pensions:

  1. Personal Retirement Savings Account (PRSA) or
  2. Personal Pension Plan (PPP)

Personal Retirement Savings Account (PRSA)

A Personal Retirement Savings Plan (PRSA) is another type of PPP. It is like an investment account that you use to save for your retirement. The money paid into a PRSA is tax deductible within certain limits. Unlike a PPP you do not have to be earning an income and paying tax to take out a PRSA.

If employers do not offer an occupational pension scheme or if certain limits apply to their scheme, by law they must offer their employees access to at least one Standard PRSA. Contributions can be made to your PRSA by:

  • you
  • your employer only, or
  • you and your employer

There are two types of PRSAs in the market, a standard PRSA and a non-standard PRSAs. There are two main differences between the two types:

Standard PRSA - Capped Charges; Limited choice of investment funds. Non-standard PRSA - Charges not capped; Wide range of investment funds.

All PRSAs are regulated by the Pensions Authority. For more information on PRSAs go to their website.

What age can you retire or take the benefits from your PRSA fund?

The options available to you at retirement are the same as those for Personal Pension Plan (PPP). Information on PPPs can be found at the bottom of this page.

Personal Pension Plan (PPP)

Last updated on 1 September 2023