Self Employed Pension

As a Self Employed business owner or sole trader, a Personal Pension is ideal for you if you want to save for retirement and benefit by maximizing tax relief available to you.

A Personal Pension is a privately owned pension held in your own name. This plan is meant for those who don’t have access to an occupational pension scheme.

Self Employed Pension Contributions

A Personal Pension gives you the option to make regular contributions, or make a one-off contribution. You may also stop your contributions for a period of time – this is known as a ‘Payment Holiday.’

These contributions are invested with the aim of building up your pension pot so you have sufficient income when you retire. The plan offers a wide range of investment options, designed to meet your needs and your risk appetite.

Personal Pension Tax Relief

A private self employed pension offers substantial tax breaks and incentives, including;

  1. Tax Relief – On contributions at your higher rate of income tax, claim up to 40% tax relief on all your pension contributions.
  2. Tax Free Growth You do not pay tax on investment growth within your pension fund (No CGT, DIRT, or income tax).
  3. Tax Free Lump Sum – You can take up to 25% of your fund as tax free cash when you reach age 60 up to a maximum of €200,000.

Max Contributions Allowable:

Contributions are limited by your age and income level, and full tax relief within these limits may be obtained. The maximum amount of earnings allowable for calculating tax relief is €115,000 per year.

Maximum Contributions Allowable







For example, if you are age 45 and earn €80,000, you can get 40% tax relief on your annual pension contributions up to €20,000.

PRSA V Personal Pension

A Personal Pension and PRSA are the two main options for self employed individuals:

In most cases, if you are a Self Employed Sole Trader and are most likely to remain so in the long run, a Personal Pension can offer better value than a PRSA in terms of benefits, charges, investment fund choice, and suitability. However, we can run through both options with you to discuss which is more suitable to your personal situation.

See how these compare >>

Self Employed Pension

Does a Self Employed person get a state pension?

Yes, self employed individuals do have access to the State Pension. However, without a private pension in place the State Pension alone may not be enough to meet your income needs in retirement.

To illustrate this, the current Irish State Pension is €253.30 per week (personal rate 2022). The average wage is €862 per week (CSO – Q4 2021). This leaves a shortfall / average weekly gap of €608.70.

As per your personal situation, our Financial Advisors can help put a pension plan in place that will determine the amount you need to contribute to meet your retirement income objectives.


At what age can I access my Pension?

Your Personal Pension can be accessed at age 60 after you cease employment.

At this point, you can take a tax-free lump sum of 25% of your fund, up to a maximum of €200,000. The remainder of your fund can then be invested in an Annuity or Approved Retirement Fund (ARF).


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