When a personal pension may be relevant
A personal pension, often called a Retirement Annuity Contract or RAC, is an individual pension arrangement. It may be relevant if you have self-employed or non-pensionable earnings, or if you need to review an existing personal pension. Eligibility, tax relief and access depend on your circumstances and the contract.
Tax relief on personal contributions is connected to relevant earnings, age-related limits and the annual earnings cap. Employer contributions and occupational-scheme membership can change which route is available.
What to compare
Contribution terms
Check minimums, flexibility, payment frequency and what happens if contributions stop.
Charges and allocation
Request the complete monetary and percentage charge schedule, including policy, fund, contribution and advisor charges.
Investment range
Review risk, diversification, switching terms, default strategies and how the approach changes near retirement.
Before requesting advice
- Collect your latest statements and policy schedule.
- List personal contributions already made in the tax year.
- Confirm your income types and any occupational pension membership.
- Write down your planned retirement age and access needs.
- Ask how the recommended option is suitable after charges, risk and service are considered.
Download the self-employed review checklist
Use the pension contribution calculator for an illustration, then read the calculation methodology.
What a personal pension is
A Retirement Annuity Contract is commonly called a personal pension. It is an individual insurance contract intended for retirement saving and is frequently used by self-employed people or individuals with relevant non-pensionable earnings. Eligibility and tax relief are linked to the earnings source.
RAC and PRSA are not identical labels
Both can support personal retirement saving, but contracts can differ in contribution flexibility, investment range, charges, transfers and retirement options. A PRSA can generally continue across employment changes and has Standard and non-standard forms. Compare actual contracts rather than assuming the product category determines value.
Tax-relief framework
Personal contributions may qualify within the age-related percentages and the €115,000 relevant-earnings cap. The limit is shared with other personal pension contributions for the same earnings source. Income Tax relief does not remove USC or PRSI from the earnings used.
Contract review
- Eligibility and relevant earnings source.
- Minimum, regular and lump-sum contribution rules.
- Contribution allocation and every ongoing charge.
- Fund choice, default investment and switching.
- Transfer value and any early-exit deduction.
- Retirement age and available benefit routes.
- Death benefits and beneficiary process.
- Advice and ongoing service included.
Use projections carefully
A projected fund depends on contributions, returns, charges, inflation and time. Compare projections with identical assumptions and examine lower-return scenarios. The final benefit can be materially lower than an illustration.
Can an employee have a personal pension?
Eligibility depends on the source of earnings and existing pensionable employment. A PRSA AVC may be the relevant route for additional contributions linked to occupational employment.
Can contributions stop?
Contract terms differ. Confirm the ability to reduce or pause contributions and whether doing so changes charges or contractual benefits.