Pensions
PRSA (personal pension) or company pension: the differences that matter
Last updated 16 October 2026
A PRSA (personal pension) is yours and moves with you; a company pension is your employer's. Tax relief is the same; access ages, limits and lump sums differ.
Both are ways to save for retirement with income tax relief. The difference is who owns the arrangement and the rules on getting money in and out.
Side by side
| PRSA (personal pension) | Company (occupational) pension | |
|---|---|---|
| Who sets it up | You, with a provider of your choice; your employer can deduct contributions through payroll | Your employer, for its employees |
| If you change job | It stays with you and you keep paying in | Contributions stop; the benefits stay in the scheme or can be transferred, including to a PRSA |
| Tax relief on your contributions | The same: at your top rate, up to the age-related limit on earnings up to €115,000 | |
| Employer contributions | Optional. Above 100% of your salary in a year they are a taxable benefit | Set by the scheme rules, within Revenue's limits on the final benefits |
| When you can draw it | From 60; it is treated as drawn at 75 if you haven't | The scheme's normal retirement age, between 60 and 70; some schemes allow 50 if you leave the job |
| Lump sum | Up to 25% of the fund | Based on salary and service, up to 1.5 times final pay after 40 years |
Topping up a company pension
If you are in a company scheme you can pay more through Additional Voluntary Contributions (AVCs). They can go into the scheme's own AVC plan or a PRSA set up for AVCs. They count towards the same age-related limit as your main contributions.
Which suits you
- If your employer runs a scheme and matches contributions, joining it usually brings in more than a PRSA alone, because of the employer money.
- If you move jobs often, or are self-employed, a PRSA goes with you.
- If your employer offers neither, you are probably in auto-enrolment. A PRSA through payroll would take you out of it, so compare the two first.
Revenue sets out the rules for occupational schemes. To see what extra contributions would cost after relief, use the pension top-up calculator; to compare with MyFutureFund, the MyFutureFund or PRSA calculator.
Work it out
- What paying more into your pension really costs →
- MyFutureFund or a PRSA? →
- Pension contribution limits and relief claims →
Sources
- Revenue: Personal Retirement Savings Accounts (employer contributions above 100% of salary are a benefit in kind from 2025) (checked 25/10/2026)
- Revenue: Tax relief on pension contributions: overview (relief at your marginal rate, no USC or PRSI relief) (checked 20/10/2026)
- Revenue: Tax relief limits on pension contributions (age-related percentages, €115,000 earnings limit) (checked 25/10/2026)
- Revenue: Taxation of retirement lump sums (€200,000 tax-free, 20% to €500,000) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.