Personal Pension
What is a Personal Pension?
A Personal Pension is a pension that is solely owned by you and held in your name. This type of pension is most suitable for someone who is self-employed or a professional worker, taxed under schedule D Case I or II, or in a job with no pension taxed under Schedule E. While you can contribute to your Personal Pension an employer cannot contribute.
Tax Relief
Depending on your level of income tax-relief on your contributions will either be at 20% or 40% relief.
| Age | Amount which qualifies for tax relief |
| Under 30 years | 15% of net relevant earnings |
| 30 to 39 years | 20% |
| 40 to 49 years | 25% |
| 50 to 54 years | 30% |
| 55 to 59 years | 35% |
When you retire
Similar to a PRSA you can take 25% of your Personal Pension fund as a tax free lump sum up to a maximum of €200,000. The remainder of your PRSA fund can then be used to purchase an Annuity or invest in an Approved Retirement Fund.
