Self-Employed Pension Ireland
Straightforward pension solutions that protect your future.
Why You Need a Self-Employed Pension Plan
No employer scheme, income uncertainty, retirement gaps; these are just some of the issues you will encounter when you’re self-employed. And while you will qualify for the State Pension with enough PRSI contributions, nothing provides financial security for your future like a well-planned pension.
Unlike Pay As You Earn (PAYE) employees, a business owner can pay themselves 100% of their gross income. So, in theory, if your business is flying high, paying yourself a pension instead of a salary is extremely attractive regarding taxes; no USC, PRSI or Income Tax, nor any Corporation Tax for the business. This is just one reason to set up a self-employed pension.
“Having adequate retirement funds for self-employed people begins with the right financial advice. That’s not only because you need to ensure your pension is yielding the greatest returns possible, but also because having your money managed gives you the freedom to concentrate on your work and growing your business.”
Michael Cunningham, Managing Director of GSB Capital Ireland
Pensions for the Self-Employed: Your Options
Retirement planning for self–employed people begins with choosing the right pension. But what exactly are your options? In Ireland, you have two main pensions to choose from if you’re self-employed and working on your own:
A Personal Retirement Savings Account (PRSA)
A Personal Retirement Savings Account (PRSA): A PRSA is a pension that you’re in total control of. You decide how much to contribute and how often, giving it a flexibility to move with your changing income. A PRSA is available in two forms:
- Standard: This type of PRSA limits the funds that can be invested and comes with a 1% Annual Management Charge. It has a minimum of 95% allocation rates.
- Non-standard: This PRSA doesn’t limit how much you can invest, although it doesn’t have a limit on account management charges you will pay, either.
A Personal Pension
A Personal Pension is obtained through a private financial institution. How much of your net relevant earnings you can contribute, and how much tax relief is available, is discussed in greater detail in our ‘Tax Relief on Pensions for Self-Employed People’ section below.
Master Trust
A defined contribution occupational pension scheme, a Master Trust consists of professional trustees – a company appointed body made up of several company pension schemes. A Master Trust typically calls for a minimum contribution of €2,000 per month, and those who partake can potentially get a higher tax free lump sum than 25% in the future.
Tax Relief on Pensions for Self-Employed People
So, are there tax benefits such as pension tax relief for self-employed people? Yes, and the details for several pension plans are as follows:
PRSA
- No income tax on any contributions at your highest rate of income tax
- Up to 100% of gross salary payable via Employer contributions
- No USC or PRSI or Corporation tax on Employer contributions
- 25% tax free lump sum at retirement (capped at €200,000)
Personal Pension
- No income tax on any contributions at your highest rate of income tax
- 25% tax free lump sum at retirement (capped at €200,000)
- No income tax on any contributions at your highest rate of income tax
- In a Master Trust, a tax free lump sum can exceed 25% if you have long service (capped at €200,000)
Furthermore, there is zero Corporation Tax for any pension contributions for any business, nor Capital Gains Tax or DIRT on investment returns.
For more information on self-employed pension tax relief, contact GSB Capital Ireland today.
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Meet the Experts Behind Your Financial Future
Senior Financial Advisor
Sam is a Qualified Financial Advisor with an MSc in Finance and membership in the Institute of Bankers. He uses retail banking and risk expertise to create strategies aligned with GSB’s values and evolving market trends.
Senior Financial Advisor
Shaunna is a Certified Financial Adviser in Ireland and an LIA member. She creates tailored strategies for clients worldwide, embracing innovation and staying current with trends, reflecting her commitment to clients.
Senior Financial Advisor
Ben is a Financial Accountant and fully qualified International Financial Planner. With experience in Banking and Wealth Management, he helps clients navigate all areas of financial planning.
GSB Capital’s Pension Advisory Process
At GSB Capital Ireland, we begin all new relationships with an initial consultation where our retirement planning specialists will get to know you and your needs. From there we will assess the best retirement plans for self-employed individuals like you, before devising a robust, personalised plan.
Next, we will show you the best pensions that we could find. We will provide impartial advice on what’s best for your long-term plan, including the type of self-employed pension contributions you would need to make to have an effective pension.
Once you and your dedicated GSB Capital Ireland advisor have decided on what route to take, we will help you set up a pension self-employed people like you can rely on. Our financial advisors will also conduct routine monitoring and evaluation of your pension plan to ensure the strategy is yielding the desired results.
FAQs About Pensions for the Self-Employed
The truth is there’s no single ‘best’ pension. Instead, the right pension depends on your business structure, income and, ultimately, your retirement goals.
That said, many self-employed professionals choose either a Personal Retirement Savings Account (PRSA) or a Personal Pension Plan (PPP) for flexibility and tax relief reasons. Also, if you’ve transitioned to a limited company, a PRSA or Master Trust can offer enticing tax advantages through employer contributions.
At GSB Capital, we strive to find the most suitable pension plan for you by assessing your full financial picture to design a strategy that delivers the best long-term results.
Pension contributions depend on a range of factors, including income, age and how much a person wants to have in their retirement fund. This, of course, means every pension varies from person to person, although there are some pension guidelines everyone must follow. For instance, Revenue allows tax relief on contributions of up to 100% of your gross earnings, depending on your company structure.
Still, we advise clients to adopt a tailored approach that balances affordability today with meaningful wealth creation for the future. So, if you’re looking for the right pension for today and tomorrow, contact GSB Capital Ireland and one of our advisors will help you calculate the ideal contribution level to maximise tax efficiency and growth.
Yes, you can set up either a PRSA or Personal Pension if you’re a sole trader. Both offer their own benefits, although it’s important that you know what you want to gain from your pension before settling on one.
To get a better understanding of your pension options, contact GSB Capital Ireland to speak with one of our financial advisors today.
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