Occupational pension schemes also known as company pension plans, are set up by employers and can provide a tax-free lump sum within certain limits, and pension income in retirement. These benefits will be based either on your final or career earnings or on the value of your retirement fund.
The advantage of these schemes is that:
- your employer helps pay towards the cost of the benefits,
- you will receive tax relief on your own contributions,
- your investments roll up tax-free, and
- the lump sum you can take at retirement is also tax-free up to certain limits.
You should check and see if your employer has such a scheme and whether you are eligible to join.
If your employer does not provide you with access to an occupational pension scheme or if certain restrictions apply to their scheme, then you must be provided with access to a standard personal retirement savings account (PRSA). For further details see the ‘PRSAs’ section.