Personal pensions
Start a pension in your own name, or top up one you already have, with a fund matched to your age, your plans and how much risk you are comfortable with.
What a personal pension is
A personal pension is a retirement plan you own and control, set up in your own name rather than through an employer. You choose how much to pay in and when, the money is invested to grow over time, and you draw on it in retirement. It suits anyone without a workplace scheme, or anyone who wants a plan that stays with them no matter where they work.
Two products sit under this heading in Ireland: the Personal Retirement Savings Account (PRSA) and the older-style personal pension plan, sometimes called a Retirement Annuity Contract. Both give you the same headline benefit, tax relief on what you pay in, but they differ in charges, flexibility and how they move with you. Part of our job is to tell you which one fits, in plain terms.
Who it is for
- Self-employed people and company directors with no occupational scheme
- Employees whose workplace does not offer a pension, or who want to save on top of one
- Anyone with an old pension from a previous job who wants to review or bring it together
- People who want a plan they keep when they change employer
How it works
You set a regular contribution, a lump sum, or both. The money is invested in funds you choose with your adviser, from lower-risk options through to funds with more growth potential. The fund grows free of Irish income tax and capital gains tax while it is invested. When you retire, usually from age 60, you can take a tax-free lump sum and then either buy a guaranteed income for life or move the balance into an Approved Retirement Fund that you keep invested and draw from.
The tax relief
This is the reason to start early. Personal contributions qualify for income tax relief at your marginal rate, so for a higher-rate taxpayer every €100 paid in costs €60 after relief. The amount you can claim relief on each year is a percentage of your earnings that rises with age:
| Age | Percentage of earnings eligible for relief |
|---|---|
| Under 30 | 15% |
| 30 to 39 | 20% |
| 40 to 49 | 25% |
| 50 to 54 | 30% |
| 55 to 59 | 35% |
| 60 and over | 40% |
Relief applies to earnings up to €115,000 a year. You can also backdate a contribution to the previous tax year if you pay it before the income tax return deadline in October.
What does a pension contribution actually cost me?
Pension contributions get income tax relief at your marginal rate, which means the amount leaving your pocket is smaller than the amount landing in your fund. Enter your age, your earnings and what you pay in each month, and this shows the age-related limit that applies to you, the relief you get, and what the contribution really costs you after it. If you have room left over, it tells you that too. Bring the figure to us and we will set a contribution that uses the relief without overshooting it.
Pension tax relief calculator
How much of your earnings you can claim relief on, and what a contribution actually costs you after relief.
Fill in the fields above and press Calculate.
Why talk to BDS
As a whole-of-market brokerage we compare plans across the market rather than selling one provider’s product. David, Bryan and Barbara all advise on pensions. Your adviser will look at what you already hold, tell you whether it still suits you, and set a contribution and fund that match your plans. Because we are paid to advise rather than to place a product, the recommendation is the one that fits you.
Common questions
Enough to reach the income you want in retirement without straining today’s budget. We model this with you using your age, current savings and target retirement age, then set a figure you can review each year.
Yes. You can raise, lower, pause or add lump sums as your income changes. A PRSA in particular is built to be flexible.
A personal pension stays with you. If you later join a workplace scheme we can review whether to keep both or bring older plans together.
Usually from age 60, though some contracts allow earlier access, and ill-health early retirement is possible. We confirm the rules for your specific plan.
Other kinds of pension
Company pensions
AVCs
PRSAs
Executive pensions
Important information
Contribution limits, tax relief rates and thresholds are set by Revenue and apply to the 2026 tax year. They can change in future Budgets and Finance Acts, and the right approach depends on your own circumstances. The examples are illustrations, not projections of what you would receive.
David Sheahan Insurance & Investments Ltd t/a BDS Financial is regulated by the Central Bank of Ireland. Reg. no. 115813. Offices in Limerick, Dublin and Galway.
This content is general information and is not financial advice. The value of investments can fall as well as rise.
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