Thinking about starting a pension? Good, you’re already ahead of the game. In Ireland, too many people put off pension planning, only to find themselves scrambling in their 50s or 60s trying to make up for lost time.
Whether you’re in your 20s and just starting out, in your 30s with growing financial responsibilities, or a bit further down the road and wondering if it’s too late (spoiler: it’s not), this guide will walk you through everything you need to know to start your pension in Ireland in 2025, clearly, confidently, and without the jargon.
Let’s begin with the basic Irish Pension Advice.
Starting an Irish pension
A pension is a long-term savings plan designed to provide you with income during retirement. It allows you to put money aside during your working life and, when the time comes, draw from that pot to support your lifestyle once you stop working.
There are a few types of pensions in Ireland, which we’ll explain in a moment — but they all share one powerful feature: tax relief. When you contribute to a pension, the government rewards you by reducing the amount of income tax you pay. That’s money you’d otherwise hand over to Revenue, working in your favour instead.
Why Start a Pension Now?
The earlier you start, the more powerful your pension becomes. This is thanks to compound growth, essentially, the returns you earn on your contributions also start earning returns. Over 20 or 30 years, that can add up to a much larger retirement pot than you’d achieve by starting later with larger amounts.
Here’s a quick example:
- Contribute €250/month starting at 30 → Retirement fund of around €300,000 at 65
- Start at 40 instead with €400/month → Fund closer to €240,000 at 65
Starting sooner, even with smaller contributions, often wins the long game.
The Three Main Types of Pensions in Ireland
1. State Pension
This is provided by the government and currently available from age 66, assuming you’ve made enough PRSI contributions. As of 2025, the full State Pension (Contributory) is around €277.30 per week.
While it’s a useful base, it’s not enough to fund a comfortable retirement on its own — that’s where private pensions come in.
2. Occupational Pension (Company Pension)
If your employer offers a pension scheme, this is known as an occupational pension. Often, your employer will match your contributions up to a certain percentage. These are typically Defined Contribution (DC) pensions, where the amount you get in retirement depends on what you and your employer contributed, and how the investments perform.
If your employer offers this, take it. It’s essentially free money on top of your salary.
3. Personal Pension
If you’re self-employed, or your employer doesn’t offer a pension, you can open a personal pension yourself. There are two main options:
- Personal Retirement Savings Account (PRSA)
- Personal Pension Plan (PPP)
As of 2023, PRSA rules were simplified, making them more flexible and accessible. In most cases today, a PRSA is the go-to option for individuals setting up their own pension in 2025.
How Much Should You Contribute?
This depends on your age, income, and retirement goals. A general rule of thumb is to aim for at least 10–15% of your gross salary, including any employer contributions.
The government offers generous tax relief on pension contributions:
| Age | Maximum Contribution for Tax Relief |
| Under 30 | 15% of net relevant earnings |
| 30–39 | 20% |
| 40–49 | 25% |
| 50–54 | 30% |
| 55–59 | 35% |
| 60+ | 40% |
So if you’re 35 and earning €40,000 per year, you could get tax relief on up to €8,000 in pension contributions annually.
How to Get Started
Step 1: Assess Your Situation
- Do you have access to an employer pension?
- Are you self-employed or a PAYE worker?
- What age do you hope to retire at?
- How much can you afford to contribute monthly?
Step 2: Choose a Pension Type
- Employer offers a scheme? Join it and maximise any matching contributions.
- No scheme or self-employed? Open a Standard PRSA with a reputable provider or financial advisor.
Step 3: Pick a Provider
There are many pension providers in Ireland: Irish Life, Zurich, Aviva, New Ireland, Standard Life, etc. You can go direct or through a qualified financial advisor to compare plans and charges.
Fees do vary, so always ask:
- What are the annual management charges?
- Are there setup or contribution fees?
- Can you switch providers in future?
A well-advised PRSA will be transparent about fees and performance.
Step 4: Choose a Fund
Your pension contributions will be invested, so you’ll need to pick a fund or investment strategy. Most providers offer choices like:
- Low-risk funds (bonds, cash)
- Balanced or mixed funds
- High-risk funds (equities, global stocks)
If you’re unsure, a lifestyle strategy will gradually reduce risk as you approach retirement.
Can You Change or Pause Contributions?
Yes. One of the best features of PRSAs is flexibility:
- You can increase, reduce, or stop contributions at any time
- You can switch providers or funds
- Your pension is portable if you change jobs
This makes starting one much less intimidating — especially if your income fluctuates.
How to Estimate Your Retirement Needs
If you’re unsure how much you need to retire comfortably, try using a pension calculator, such as the one available at the National Pension Helpline. It’ll help you work out how much to save each month based on your income, age, and target retirement lifestyle.
It only takes a few minutes and can give you a realistic picture of where you’re headed — or how far off course you might be.
Final Thoughts
Starting your pension in Ireland in 2025 doesn’t need to be overwhelming. With strong tax benefits, flexible options, and professional advice widely available, getting started is easier than ever.
The most important thing? Just start. Even small contributions can make a huge difference over time. Your future self, whether they’re sipping wine in Tuscany or spoiling grandkids back home, will thank you.
Need help getting started?
Speak to a qualified financial advisor or explore resources like the National Pension Helpline for free guidance and tools to build a retirement plan that works for you.
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