Unlock your Pension early

When you can access your retirement benefits will depend on the specific plan you have. If you established a pension plan while self-employed or while working for an employer that did not make contributions to your pension, you possess a Personal Pension. If you were employed by a company and enrolled in a pension scheme with contributions from your employer, you hold a Company Pension. This can come in the form of a Defined Contribution (DC) pension, a Defined Benefit (DB) pension, or an Executive Pension Plan. If you opt to top up your company pension by making extra voluntary contributions, you possess an Additional Voluntary Contribution (AVC) pension.

Alternatively, you might have a Personal Retirement Savings Account (PRSA). This pension plan is open to individuals in various categories, including employees, self-employed individuals, homemakers, the unemployed, and others. If you left an employer and moved your pension fund to an independent pension account, you hold a Retirement Bond.

  • Personal Pension

    You might have the option to access funds from your personal pension under the following conditions:

    Any time between the ages of 60 and 75.

    You might be able to retire early in the event of severe illness.

    You may retire before the age of 60 when you are permanently unable to work.

    Some occupations are allowed to retire early, such as golfers, rugby players, jockeys, and similar occupations

  • Company Pension

    You might have the option to access funds from your company pension under the following conditions:

    The standard retirement age is determined by your employer and usually falls within the range of 60 to 70.

    If you are 50 or older, early retirement is a possibility, provided it's approved by your employer and the pension trustees.

    Additionally, early retirement due to serious illness is an option.

    In specific cases, you may be able to retire at any age if you are permanently incapable of working.

  • PRSAs - Personal Retirement Savings Accounts

    You might have the option to access funds from your PRSA pension under the following conditions:

    You can access your PRSA at any point within the age range of 60 to 75.

    In some situations, it may be possible to start receiving benefits from as early as age 50.

  • Retirement Bonds

    You might have the option to access funds from your retirement bond under the following conditions:
    Your standard retirement age is established within your company pension plan and remains unaltered when transferring to a Retirement Bond.

    It can be between 60 and 70.

    You have the option to opt for early retirement starting at age 50.

    Additionally, early retirement due to severe illness is possible, contingent on approval from the Revenue.

Boost your contributions with the Employer Benefit. 

If your employer offers a pension plan with matching contributions, take full advantage of it. Employer contributions can significantly boost your retirement savings. For example, let’s take the scenario where you are an employee and have a company pension plan. The crucial point to note is that thanks to tax relief, your effective cost is only €130. This means you’re able to contribute more to your pension pot while paying less, all thanks to the tax relief benefit. You’re getting €304 more into your pension pot, it’s literally free money!

Browse through our Frequently Asked Questions below

  • Once you’ve received your tax-free lump sum upon retirement, you might have the option to select either an Annuity or an Approved Retirement Fund (ARF). An annuity is structured to offer a consistent and assured income stream for your lifetime. It’s crucial to select an annuity that aligns with your own and your spouse’s retirement needs. 

  • An Approved Retirement Fund (ARF) provides retirees in Ireland with increased control over their pension funds. ARFs allow you to remain invested in the financial market, giving you flexibility in managing your investments and enabling you to take a variable income during retirement. You, as a retiree, can decide the portion of your pension fund to invest and select your desired risk level with an ARF. You should be aware that the value of the fund can vary due to market conditions, even though you have the option to make periodic or as-needed withdrawals from it.

  • This is the phase where you access your private retirement benefits make use of the funds and then pass away. Regarding the distribution of your pension upon retirement:

    • You receive a tax-free lump sum amounting to 25% of your pension fund.

    • This lump sum can be inherited as a component of your estate.

    • The inheritance may be subject to inheritance tax, which depends on the individual(s) inheriting your estate.

    Retirement Lump Sum

    When you pass away, this money becomes part of your estate. Different levels of taxes will apply depending on who inherits the money.

    Annuity

    You have the option to determine what will happen with your pension upon your passing. For instance, it can stop immediately, or it can continue to be paid, at a reduced rate, to your widow/widower or partner. It can provide a guaranteed level of pension income for your spouse or civil partner for up to 10 years. For example, if you buy an annuity with a 10-year guaranteed period, and you pass away one year after retiring, your family will receive your income for the remaining 9 years.

    Approved Retirement Fund

    The worth of your ARF is transferred to your estate when you die. The applicable tax levels vary depending on who inherits the money.