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Choosing between a Personal Retirement Savings Account (PRSA) and an occupational (company) pension is one of the most important financial decisions you will make in Ireland. This guide compares the two across contribution limits, employer matching, fees, investment choice, and tax relief — using real numbers for 2026 — so you can decide which route suits your circumstances.
| Feature | PRSA | Occupational Pension |
|---|---|---|
| Setup | Personal contract with an approved provider | Arranged by your employer (trust-based) |
| Portability | Fully portable — keep it when you change jobs | Usually stops contributions when you leave; can transfer to a PRSA or new scheme |
| Employer contributions | Employer can contribute, but no obligation | Often includes employer matching (% of salary) |
| Fee cap (AMC) | 1% (standard PRSA); higher for Executive PRSA | Typically 0.3%–0.8% (negotiated by employer) |
| Investment choice | Broad range of funds; can switch freely | Limited panel chosen by trustee |
| Tax relief | Marginal rate, up to age-related % limit | Marginal rate, up to age-related % limit |
| Retirement age | Minimum 60 (standard); can draw from 50 on retirement | Normal retirement age set by scheme rules (typically 65) |
| Lump sum at retirement | Up to 25% tax-free (subject to SFT limits) | Up to 25% tax-free (subject to scheme rules and SFT) |
Revenue sets the same maximum tax-relievable contribution limits for both PRSAs and occupational pensions. The limit depends entirely on your age, not on the product type. Contributions above these limits do not receive tax relief, though you can still contribute from after-tax income.
| Age range | Max % of earnings | Example at €50,000 salary |
|---|---|---|
| Under 30 | 15% | €7,500 |
| 30–39 | 20% | €10,000 |
| 40–49 | 25% | €12,500 |
| 50–54 | 30% | €15,000 |
| 55–59 | 35% | €17,500 |
| 60 and over | 40% | €20,000 |
Employer matching is the single most powerful reason to prioritise an occupational pension over a PRSA where one is available. A typical matching structure might be: you contribute 5% of salary, your employer contributes 5% — instantly doubling your pension savings rate.
For example, on a €60,000 salary with a 5% match, you contribute €3,000 and your employer adds another €3,000. That €3,000 of free money grows tax-free in the pension fund and compounds over decades. Over 30 years at a 5% annual return, that €3,000 alone could grow to roughly €13,000. Across a full career, employer matching can add six figures to your retirement fund.
If your employer offers a matching scheme, the general rule is: contribute at least enough to get the full match. Anything less is leaving free money on the table. After maximising the match, you can consider supplementary PRSA contributions to reach your age-related limit.
PRSAs are designed to be consumer-friendly. Standard PRSAs must offer at least five investment options, including a default fund (often a lifestyle/auto-enrolment fund), a low-risk fund, a medium-risk balanced fund, a higher-risk equity fund, and a cash fund. Executive PRSAs and self-directed PRSAs can offer hundreds of funds, including ETFs, investment trusts, and bespoke portfolios.
Occupational pensions vary hugely. Large employers with well-governed schemes may offer 10–30 funds covering passive trackers, active funds, ESG funds, and a default lifestyle option. Small employers may offer only 3–5 funds. The trade-off is that occupational schemes are designed for the average member — you cannot pick individual stocks or ETFs in most cases.
Your choice depends on your investing confidence. If you want to tailor your asset allocation, switch between funds as you near retirement, or invest in specific themes (e.g. clean energy, technology), a PRSA gives you that control. If you prefer a “set and forget” approach, a well-structured occupational default fund with low fees can do the job.
Fees are the silent drag on pension returns. A 1% difference in annual fees can reduce your final fund value by 20–25% over a 30-year career. Here is how PRSAs and occupational pensions compare on the main cost categories.
| Fee type | Standard PRSA | Occupational scheme |
|---|---|---|
| Annual Management Charge | Up to 1.0% (capped) | 0.3%–0.8% |
| Initial contribution charge | Up to 5% (capped) | Typically 0% |
| Fund switching fee | Usually free or low cost | May be free (depending on scheme) |
| Advisor / setup fee | May apply (Executive PRSA) | Paid by employer, not you |
Both PRSAs and occupational pensions benefit from the same fundamental tax advantage: contributions are made from pre-tax income (within your age-related limit), meaning you get tax relief at your marginal rate. For a higher-rate taxpayer (40%), every €100 contributed costs only €60 after tax relief. The fund grows tax-free (no CGT, no dividend tax), and you can take 25% of the fund tax-free at retirement.
In most occupational schemes, contributions are deducted from your gross salary before PAYE is calculated. This means you receive tax relief automatically and immediately, at your highest rate. The pension contribution reduces your taxable income for the payroll period, so your take-home pay reflects the relief without any extra paperwork.
PRSA contributions are typically made from your net (after-tax) income. You then claim tax relief directly from Revenue — either through your myAccount (for PAYE workers) or via your annual Form 11 (for self-assessed individuals). Revenue adds tax relief at your marginal rate by adjusting your tax credits or issuing a refund. For higher-rate taxpayers, this means you pay the full contribution upfront and get 40% back later. The net effect is the same as an occupational pension, but the timing differs.
For many people, the optimal strategy is not one or the other — it is both. Contribute enough to your occupational scheme to capture the full employer match, then use a PRSA to top up to your age-related percentage limit. This gives you the best of both worlds: free money from your employer plus investment flexibility and portability.
A Personal Retirement Savings Account (PRSA) is a personal pension contract you set up independently with a provider, whereas an occupational (company) pension is arranged by your employer. PRSAs are portable — you keep them when you change jobs — while occupational schemes typically stop new contributions when you leave. Occupational pensions often include employer matching contributions and may offer lower fees due to group purchasing power. Both benefit from the same tax relief at your marginal rate, subject to age-related percentage limits.
Revenue sets maximum age-related contribution limits as a percentage of your earnings: under 30 = 15%, 30–39 = 20%, 40–49 = 25%, 50–54 = 30%, 55–59 = 35%, and 60 and over = 40%. These percentages apply to your net relevant earnings up to an overall earnings cap of €115,000 (for 2024, indexed periodically). Any contributions above these limits do not qualify for tax relief. The same limits apply to both PRSAs and occupational pensions, though the cap is a combined limit across all pension arrangements.
Occupational pension schemes often include employer matching — for every €1 you contribute, your employer may add €0.50, €1, or more, up to a set percentage of salary. This is effectively free money on top of your salary. PRSAs do not have employer matching by default; however, your employer can choose to contribute to your PRSA (separate from salary) as a benefit. Those employer PRSA contributions are tax-deductible for the company and are not treated as a BIK for you, but they count toward your overall age-related percentage limit.
PRSAs are regulated with capped charges — Annual Management Charges (AMC) are capped at 1% per year, and initial contribution fees cannot exceed 5%. Executive PRSAs have higher but negotiable fee caps. Occupational pension schemes tend to have lower fees (often 0.3%–0.8% AMC) because the employer negotiates on behalf of a larger group, spreading costs across many members. However, some occupational schemes charge additional administration fees, and defined-benefit schemes carry higher implicit costs. Always review the fund expense ratios and any advisor fees embedded in the product.
PRSAs typically offer a wider range of investment funds, including passive index-tracking funds, actively managed equity funds, balanced funds, property funds, cash funds, and ethical/ESG options. You can switch between funds as your risk appetite changes. Occupational pensions often limit you to a smaller panel of funds selected by the employer or pension trustee, though many modern schemes now offer 10–30 fund options. If investment flexibility is your priority, a PRSA — especially a self-directed one — usually provides more choice. If simplicity and low fees matter more, a well-structured occupational scheme may be preferable.
Our Pension Tax Efficiency tool models the impact of pension contributions on your take-home pay, showing the exact tax saving at your marginal rate. Enter your salary and contribution level to see the net cost and projected fund value.