When it comes to planning for retirement, there’s always plenty of questions and rightly so as it is an important and detailed area. Between the State Pension, personal pensions, occupational schemes, and now auto-enrolment, it can be hard to know where to begin. In this article, we've answered the questions we have been most frequently asked over the past couple of months.
1. What types of pensions are and how do I qualify for the State Pension?
There are now 4 main types of pension arrangements:
• The State Pension (paid by the government)
• Occupational Pensions (set up by employers)
• Personal Pensions / PRSAs (for the self-employed or those without a workplace scheme)
• My Future Fund Pension (New Auto-Enrolment pension scheme)
The State Pension (Contributory) is currently available from age 66 provided you’ve built up enough PRSI contributions over your working life. Generally, you’ll need at least 520 full-rate contributions (10 years) to qualify for any payment, and 48 contributions per year on average for the full rate. There’s also a Non-Contributory State Pension, which is means-tested for people with little or no PRSI record. The current maximum rate of payment is €299.30 per week or just over €15,500 per year.
While the State Pension provides a valuable foundation for retirement, for most people it’s not enough to maintain their standard of living in retirement. That’s where private and occupational pensions come in.
2. What’s the difference between an occupational pension and a personal pension (PRSA)?
An occupational pension is arranged by your employer. Both you and your employer usually contribute to it, and the funds are managed by trustees on your behalf. You’ll often have access to investment choices and may receive tax relief on your contributions.
A Personal Retirement Savings Account (PRSA) or personal pension plan is typically used if you’re self-employed, changing jobs frequently, or your employer doesn’t offer a pension. You make the contributions yourself, but you still receive tax relief on what you put in (up to certain limits based on your age and income).
3. What is auto-enrolment, and how will it affect me?
Auto-enrolment launched in January 2026 and is one of the biggest changes coming to Irish pensions in decades. It’s the new national pension savings scheme designed to help workers who don’t currently have a private or workplace pension.
All employees aged 23–60 earning over €20,000 per year and not already in a pension will be automatically enrolled. Both the employee and employer will contribute a set percentage of salary, starting at 1.5% each and rising gradually over time. The government will top up your savings with an additional €1 for every €3 you contribute. Unlike an occupational pension scheme, your “My Future Fund” will move from employment to employment with you.
4. How much should I be saving into my pension, and when is the best time to start?
This is a very individual question. We will always tell our clients that the best time to start saving into a pension is now, whatever age they are. The earlier you start, the more time your money has to grow through investment returns and the less you’ll need to put aside later in life.
A general rule of thumb is if you start in your 20s or 30s, contributing 10–15% of your salary can build a solid retirement fund. If you start later, you may need to contribute more to build your fund sufficiently.
Remember, your pension contributions receive tax relief, meaning that for every €100 you contribute, the actual cost to you could be as low as €60 or €80 depending on your tax rate. It really is one of the most efficient ways to save for your future.
5. Can I access my pension early, and what happens if I retire before the normal age?
Accessing your pension early is possible, but it’s restricted. Generally, you can’t access your private or occupational pension until you reach the normal retirement age set by your scheme (often between 60 and 65).
However, there are exceptions including ill-health retirement and also early retirement form an employer scheme where allowed from age 50. However, having said that we have helped many people retire early depending on their financial situation. In addition, others have opted to reduce their working hours for several years prior to retirement again as their finances allowed.
6. What happens to my pension when I die?
You spent a lot of your working life building your pension fund, so what happens to this when you pass away. Well this depends on the type of pension you have. With a State Pension, payments stop when you die, although your spouse or partner may be eligible for a Widow’s, Widower’s or Surviving Civil Partner’s Pension. If you have an Occupational or Personal pension and for the “My Future Fund” scheme, should you die before retirement, the value of your pension fund is typically paid to your beneficiaries as a lump sum. As with anything, it is important to understand what each option provides for you and your beneficiaries and regularly review to ensure your wishes are clear.
Not only can planning for retirement feel overwhelming, keeping on top of your chosen plan can also take time and effort. But it’s important and the first step is to understand your options and start.
If you’re unsure where to start, or you want to make sure your pension is on track, get in touch with us to book a no obligation Pension Review.
