Pensions FAQs

You need your own pension because the State pension isn't that generous. The full personal State Pension (Contributory) is just over €13,000 a year. Compare this to your salary now and the income you hope to live on when you retire. This is why you need your own pension.

A personal pension policy is a Revenue approved contract set up with a life assurance company by a self-employed person to save for retirement. It can also be set up by an employee who does not have access to a pension scheme organised by their employer. Tax relief is available on contributions to the policy to encourage saving for retirement (within Revenue limits). The formal name for a personal pension policy is Retirement Annuity Contract.

A PRSA is similar to a personal pension policy, designed by legislation to improve saving for retirement. It is a Revenue approved contract set up with a PRSA provider by an individual to save for retirement. Tax relief is available on contributions to the policy to encourage saving for retirement (within Revenue limits).

A buy out bond (also known as a personal retirement bond) is a policy where you can transfer your pension fund if you leave a company pension scheme or if the pension scheme is being shut down. The trustees set up the buy out bond for you and put you in control, so they don't have to be involved any more.

An executive pension plan is a Revenue approved occupational pension scheme set up by an employer under trust to save for one or more employees' retirement. Tax relief is available on contributions paid by the employer and employee to encourage saving for retirement (within Revenue limits). Standard Life's Synergy Executive Pension plan is a one-member scheme. Standard Life's Tower Pension Series, Corporate Pension Series and Executive Pension Plus plans are multi-member group schemes.

A group pension scheme is a Revenue approved occupational pension scheme set up by an employer under trust to save for a large number of employees' retirement. Tax relief is available on contributions paid by the employer and employee to encourage saving for retirement (within Revenue limits). See Group Pension Scheme FAQs

The amount of tax relief on your personal contributions to all pension arrangements is based on your age and your earnings.

Your age	% net relevant earnings*
Under 30	15%
30-39	20%
40-49	25%
50-54	30%
55-59	35%
60 or over	40%

* for the 2022 tax year, net relevant earnings are subject to a ceiling of €115,000 for the purpose of calculating tax relief.

Send us a cheque, together with your policy number and investment choice to:

Standard Life
90 St Stephen's Green
Dublin D02 F653

Yes, because if all your pension funds total more than €2m, you'll have to pay an additional tax (40%) on the excess.  
If you have already taken a pension, talk to your financial adviser as the limits may be different. If you buy an annuity and/or invest in an ARF, any payments from them will be treated as income and taxed under the PAYE system.

Yes, if you're a member of a company pension scheme or if it's from a PRSA. You'll need to get the receiving scheme to confirm that the pension benefits will be similar to what you are transferring from and it's approved by the country's pension regulator.

Your pension is to provide for your retirement and you can't normally cash it in before age 60.

There are circumstances where you can retire as early as age 50. This would normally require the approval of your employer and/or Revenue.
Where you are permanently unable to work or terminally ill, you may be able to retire at any time with the approval of Revenue and/or Standard Life.

Normally age 60, if you take early retirement from your employer (from age 50), you may be able to take your pension at the same time. If you are in an occupation where early retirement is normal, the Revenue may allow you to take your pension as early as age 50. If you are permanently unable to work due to serious illness or disability, you may be able to take your pension at any age.

Pension (annuity) payments are treated as income and taxed under the PAYE system (for example, income tax, PRSI, USC).

25% of the value of your pension policy.

Taking all your pension arrangements into account, the first €200,000 cash lump sum is tax free. The next €300,000 will be taxed at 20%. Anything over €500,000 will be treated as income and taxed under the PAYE system.

If you are a member of a company pension scheme, you have the option of taking a lump sum based on your salary and length of service instead.

If you have already taken some pension benefits or are in a defined benefits scheme, then talk to your financial adviser as the limits that apply to you may differ.
 

If you have a personal pension or a PRSA, the maximum amount of pension depends on your policy value and annuity rates at the time.

If you are a member of a company pension scheme, it is 2/3rds final salary provided you have 10 years service to normal retirement age and you don't have other pension benefits from other employments.