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When most people picture retirement, they think of freedom: travelling, spending time with family, buying a new car or simply having the peace of mind that comes from knowing the bills are paid.
But real freedom in retirement doesn’t just happen. It’s built slowly and steadily through pension and retirement planning. That’s where a PRSA (Personal Retirement Savings Account) comes in.
What Is a PRSA?
A PRSA is a private pension plan that anyone in Ireland can set up, whether you’re employed or self-employed.
Think of it as your personal savings pot for retirement. You contribute money into it, and that money is invested to help it grow over time. It’s your own way of making sure future you can live comfortably and independently.
And here’s one of the best parts: you get tax relief on your contributions.
That means some of the money that would have gone to the taxman instead goes into your pension, helping your savings grow faster.
The big advantage? You’re in control. You decide:
- How much to contribute
- How often to pay in
- Where your money is invested
And you can take your PRSA with you if you change jobs or become self-employed; it’s completely portable.
State Pension vs. Private Pension
This is where people often start comparing, and it’s an important distinction.
The Contributory State Pension pays €289.30 per week (as of 2025), enough to cover basic expenses, but not a full lifestyle. You can claim it from age 66 if you’ve enough PRSI contributions.
A Private Pension, like a PRSA, is your own retirement fund that grows based on what you put in and how it’s invested. You can potentially retire earlier, live more comfortably, and stay financially independent.
You can usually access your PRSA from age 60, giving you more control and flexibility over your future. In some situations, it may be possible to start receiving benefits from as early as age 50.
Read more about the key differences here: State Pension vs. Private Pension: What’s the Real Difference?
How Your Pension Grows Over Time
Your PRSA isn’t just a savings account. It’s an investment.
When you contribute money, it’s invested in funds, like shares, bonds, or property, with the goal of long-term growth. Over time, your money benefits from compound growth, meaning you earn returns on your contributions and on your previous gains.
Even small, regular amounts can grow into a solid retirement fund.
The earlier you start, the more time your money has to grow. But even starting in your 40s or 50s can make a big difference.
Be smart with your money. Get a personalised quote today!
Tax Relief: One of the Biggest Perks
Tax relief is one of the main reasons a PRSA is such a powerful savings tool.
When you contribute to your PRSA, the government gives you tax relief based on your income tax rate:
- If you pay 20% tax, €100 into your PRSA only costs you €80.
- If you pay 40% tax, €100 only costs you €60.
That’s like getting an instant return on your savings.
Your PRSA also grows tax-free, and when you retire, you can usually take up to 25% as a tax-free lump sum (within certain limits). It’s one of the few times where the tax system really works in your favour.
PRSAs for the Self-Employed and Business Owners
If you’re self-employed, you don’t automatically get a workplace pension, so a PRSA is your main way to save for retirement.
It gives you full flexibility:
- You can contribute when it suits your income.
- You get full tax relief on your contributions.
- You decide how your money is invested.
For those who run a limited company, there’s another excellent option called a Master Trust pension.
A Master Trust allows your company to make contributions directly into your pension — often much higher than personal PRSA limits — and it can be a very tax-efficient way to move company profits into long-term savings.
So while a PRSA is great for flexibility, a Master Trust can be more powerful for business owners or company directors looking to maximise pension funding.
Can I Transfer To and From My PRSA?
Yes, you can transfer your pension to and from your PRSA, as long as it meets the standard pension rules and legislative requirements.
Transferring into your PRSA
You can move your pension savings from several different sources into your PRSA, such as:
- Another PRSA
- An Occupational Pension Plan
- A Retirement Annuity Contract (Personal Pension Plan)
- Refunds of contributions from an occupational pension scheme
- Or even certain pension arrangements outside the State
In most cases, there are no initial charges on transfers received into our PRSA products, making it a simple and cost-effective way to consolidate your pension funds.
Transferring from your PRSA
If you ever decide to transfer your PRSA to another pension arrangement, you usually can.
You can move your accumulated fund to:
- Another PRSA
- An Occupational Pension Plan
- Or approved pension arrangements outside the State
Transferring your PRSA gives you flexibility and control, allowing you to keep your retirement savings in the place that best suits your goals.
When Can You Retire with a PRSA?
One of the best parts of having your own pension is flexibility around when you retire.
With a PRSA:
- You can access it from age 60, or sometimes earlier if you leave employment.
- You can wait until age 75 to take benefits if you prefer to let it grow longer.
When the time comes, you can:
- Take up to 25% tax-free
- Use the rest to provide an income (through an Approved Retirement Fund (ARF) or Annuity)
- Or leave it invested if you’re not ready to draw it yet
You decide what suits your lifestyle and financial goals best.
Want to learn more? Read our Pension and Retirement Planning Guide to start planning your future with confidence.
Be smart with your money. Get a personalised quote today!
Get a Pension Quote
A PRSA isn’t just about saving for retirement; it’s about protecting your independence.
It gives you:
- The freedom to retire when you want
- More than just the State Pension to rely on
- Valuable tax benefits
- And the peace of mind that comes from planning ahead
Whether you’re an employee, self-employed, or running your own business, setting up or reviewing your PRSA today can make a huge difference to your future.
It’s one of the simplest ways to make sure that when you retire, you’re not just getting by; Get a quote today and start planning your future.
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