Pension options in Ireland

The right pension comparison starts with free or subsidised money.

Before comparing funds, apps or providers, ask:

What will my employer and the State add if I contribute?

That can matter more than the difference between two investment funds.

The three common routes

Start with your workplace pension

If your employer offers a pension and contributes to it, quantify that contribution before doing anything else.

Suppose your employer matches your contribution up to 5% of salary.

On a €50,000 salary:

• you contribute €2,500;
• employer contributes €2,500;
• €5,000 reaches the pension before investment returns.

Ignoring tax relief and fees, declining the employer match means walking away from €2,500 a year of employer-funded retirement saving.

Employer arrangements differ, so confirm:

• the contribution formula;
• whether matching is conditional on your contribution;
• waiting periods;
• investment options;
• fees;
• death-in-service cover;
• normal retirement age;
• and what happens on leaving.

PRSA: where flexibility matters

A PRSA is personally owned.

That portability can be valuable when:

• you change employers;
• you are self-employed;
• your employer does not offer an occupational scheme;
• you want a separate personal pension;
• or you need a PRSA for AVC purposes.

Revenue says PRSAs can be funded by both the employee and employer.

From 1 January 2025, employer PRSA contributions above 100% of the employee’s salary can create a benefit-in-kind charge. That is a limit on unusually large employer contributions, not a normal target.

Standard vs non-standard PRSA

The existence of a cap does not make 5% + 1% cheap.

Always compare the actual charges.

Where MyFutureFund fits

MyFutureFund was introduced on 1 January 2026.

For 2026–2028, contributions are scheduled at:

• employee: 1.5%;
• employer: 1.5%;
• State: 0.5%.

The State top-up is the support mechanism rather than ordinary pension Income Tax relief on the employee contribution.

The system is particularly important for workers who previously had no occupational pension or PRSA contribution through payroll.

Read the dedicated MyFutureFund vs Private Pension guide for eligibility, contribution phases, opt-out rules and investment details.

Tax relief versus State top-up

This is one of the most important comparisons.

With a qualifying private pension contribution, Income Tax relief is available at your marginal Income Tax rate, subject to Revenue limits.

Revenue states that there is no employee pension contribution relief from USC or PRSI.

MyFutureFund uses a State contribution rather than ordinary marginal-rate pension tax relief on the employee contribution.

The relative value therefore depends partly on your Income Tax position.

Do not compare only the amount deducted from take-home pay.

Access

Pensions are deliberately restricted.

That is part of the bargain for favourable pension tax treatment.

A PRSA can normally be accessed from age 60.

Occupational schemes specify a normal retirement age, generally between 60 and 70, with scheme-specific early-retirement provisions.

MyFutureFund follows its own access rules.

If the money may be needed for a house deposit, business or other pre-retirement goal, it should not automatically be placed into a pension.

Investment choice

A workplace scheme may offer:

• one default strategy;
• a small menu of funds;
• or a broader self-select range.

A PRSA can offer significant choice, particularly a non-standard PRSA.

MyFutureFund provides its own investment framework.

More choice is not automatically better.

For many savers, a sensible diversified default with reasonable fees can be more useful than hundreds of funds that encourage constant switching.

Death benefits

Do not ignore this.

Some occupational pension schemes include valuable death-in-service cover.

A personal pension may also provide benefits to an estate or beneficiaries, depending on the arrangement and whether death occurs before or after retirement.

If you are comparing pension routes, compare the entire benefit package rather than only the projected fund.

A decision sequence that works

If your employer contributes

Understand the workplace pension first.

The employer contribution can make it difficult for an alternative arrangement to compete for the same first euro of retirement saving.

If you have no qualifying workplace pension

Check whether MyFutureFund applies.

Then compare whether additional personal pension saving through a PRSA or RAC makes sense for your goals and tax position.

If you are self-employed

MyFutureFund does not currently cover the self-employed.

A PRSA or RAC may be relevant.

If you already have a workplace pension but want to save more

Look at AVCs and Revenue’s tax-relief limits.

That is Chapter 3.

The comparison checklist

Frequently asked questions

Is a PRSA better than a workplace pension?

Not automatically. Employer contributions can make a workplace pension very valuable. Compare the entire arrangement.

Can I have a workplace pension and a PRSA?

Yes, but tax relief on your own contributions is subject to Revenue’s combined limits. PRSAs can also be used for AVC purposes in appropriate circumstances.

Is MyFutureFund a replacement for all private pensions?

No. It is a specific auto-enrolment system for eligible employees without a qualifying payroll pension arrangement.

Should I choose the pension with the most investment funds?

Not necessarily. Diversification, fees, suitability and ease of staying invested matter more than the number of options.