Irish Pension Calculator

My Future Fund is Ireland's first auto-enrolment retirement savings system, launched on 1 January 2026 under the Automatic Enrolment Retirement Savings System Act 2024. It is administered by the National Automatic Enrolment Retirement Savings Authority (NAERSA).

You will be automatically enrolled if you meet all of these criteria:

• Aged 23 to 60
• Earn more than EUR 20,000 per year (across all employers, rolling 13-week lookback)
• Not already enrolled in an occupational pension or payroll PRSA

Over 760,000 employees were auto-enrolled on day one. Workers outside the age band or under the earnings threshold can opt in voluntarily.

Contributions are phased in over 10 years, rising every 3 years:

• Year 1-3: 1.5% employee + 1.5% employer + 0.5% State = 3.5% total
• Year 4-6: 3% + 3% + 1% = 7% total
• Year 7-9: 4.5% + 4.5% + 1.5% = 10.5% total
• Year 10+: 6% + 6% + 2% = 14% total

The State adds EUR 1 for every EUR 3 the employee contributes. Employer and State matched contributions are capped at salary of EUR 80,000 — earnings above that don't attract matching.

Yes, but only during specific windows. After enrolment, you can opt out during months 7 and 8 after your enrolment date, and receive a refund of your contributions paid during those months. After opting out, you will be automatically re-enrolled every 2 years (you can opt out again each time).

You can also suspend contributions temporarily without leaving the scheme. Once you opt out, employer and State contributions you received are forfeited — only your own employee contributions are refunded.

The two systems work differently and can suit different employees:

• My Future Fund: State adds EUR 1 for every EUR 3 employee contributes (effectively 33% boost). No marginal-rate tax relief — instead a direct top-up. Default lifecycle strategy; NAERSA manages everything.
• Traditional occupational / PRSA: Tax relief at marginal rate (20% or 40%). Choice of provider and investment strategy. Higher contribution limits available (age-related % up to 40%).

For higher-rate (40%) taxpayers, traditional pensions with marginal-rate tax relief generally offer a larger uplift than My Future Fund's State top-up. For standard-rate (20%) taxpayers, the difference is much smaller.

You're still enrolled in My Future Fund, but employer and State contributions only match your contributions on the first EUR 80,000 of salary. Your own employee contribution can be made on your full salary if you choose — but won't attract matched contributions above EUR 80,000.

For high earners, an occupational pension or PRSA outside of auto-enrolment may offer better value, since contributions on earnings up to EUR 115,000 qualify for marginal-rate tax relief.

The main pension types in Ireland are:

• State Pension (Contributory) — based on PRSI contributions, paid from age 66
• State Pension (Non-Contributory) — means-tested for those without enough PRSI contributions
• My Future Fund — new auto-enrolment scheme from 1 January 2026, administered by NAERSA
• Occupational pension — workplace pension via payroll (defined contribution or defined benefit)
• Personal Retirement Savings Account (PRSA) — flexible self-directed pension product
• Retirement Annuity Contract (RAC) — personal pension typically used by self-employed
• Additional Voluntary Contributions (AVCs) — voluntary top-ups to an existing occupational pension

A Personal Retirement Savings Account (PRSA) is an individual pension contract. PRSAs are particularly suitable for self-employed people, employees whose employers don't offer a pension scheme, or anyone wanting to consolidate pensions from multiple jobs.

Key features:

• Contributions attract tax relief at your marginal rate (20% or 40%)
• Subject to age-related % limit on earnings up to EUR 115,000
• Standard PRSAs have a maximum annual charge of 1.0%; Non-Standard PRSAs may have higher fees
• From 1 January 2025, employer PRSA contributions are capped at 100% of employee's salary

Additional Voluntary Contributions (AVCs) are top-up payments you can make to your existing occupational pension scheme to boost your retirement benefits. They qualify for tax relief at your marginal rate (20% or 40%) within your age-related limits.

AVCs are particularly useful when:

• You joined your pension scheme later in your career
• Your employer's contribution rate is below your age-related maximum
• You want to maximise your tax-free retirement lump sum
• You want to use unused tax relief headroom before year-end

Backdating: AVCs made before 31 October each year can be elected to apply against the previous tax year, giving immediate tax relief in your most recent return.

Both are top-up vehicles, but with different structures:

• AVCs — paid into your existing occupational pension scheme. Investment options limited to those in the scheme. Tax relief processed automatically via payroll.
• PRSA AVCs — separate PRSA used as an AVC vehicle. Wider investment choice and provider portability. Tax relief claimed via Revenue myAccount.

The contribution limits and tax relief rules are the same for both — age-related % of earnings, EUR 115,000 earnings cap. The choice usually comes down to investment flexibility and whether you want to keep AVCs with the same provider as your main scheme.

Revenue caps tax-relieved pension contributions in two ways:

Age-related % of earnings:

• Under 30: 15%
• 30 to 39: 20%
• 40 to 49: 25%
• 50 to 54: 30%
• 55 to 59: 35%
• 60 and over: 40%

Earnings cap: EUR 115,000 per year (unchanged since 2011 under Section 790A TCA). Even if you earn more, only the first EUR 115,000 counts toward your relief calculation. Employer contributions don't count against your personal limit.

Pension contributions reduce your taxable income at your marginal rate of income tax:

• Standard rate (20%): a EUR 100 pension contribution costs EUR 80 net
• Higher rate (40%): a EUR 100 pension contribution costs EUR 60 net

The higher rate band starts at EUR 44,000 for a single person (EUR 53,000 for a married couple with one earner) in 2026. Pension contributions do not qualify for relief from PRSI or USC — those are still payable on the contribution amount.

It depends on how you contribute:

• Occupational pension via payroll: Relief is applied automatically at source — your pension contribution is deducted from gross pay before tax.
• PRSA / personal pension outside payroll: Claim through Revenue's myAccount (PAYE workers) or ROS (self-assessed) when filing your annual return.
• Backdated lump sum: A contribution made before 31 October can be elected to apply against the previous tax year. ROS users have an extended deadline (typically mid-November).

You can claim missed relief for up to 4 previous tax years under Revenue's 4-year rule.

The Standard Fund Threshold is the lifetime cap on tax-relieved pension benefits an individual can draw down. From 1 January 2026 it is EUR 2.2 million (the first increase since 2014), and it is rising in EUR 200,000 annual steps to EUR 2.8 million by 2029:

• 2026: EUR 2.2M · 2027: EUR 2.4M · 2028: EUR 2.6M · 2029: EUR 2.8M

Pension benefits above the SFT face a 40% income tax charge on the excess (the "Chargeable Excess Tax"). A Personal Fund Threshold (PFT) of up to EUR 2.3M may apply to people whose pension exceeded EUR 2M on 1 January 2014.

Access ages differ by pension type:

• State Pension Contributory: from age 66 (with optional deferral to 70 for those born 1958+)
• Occupational pension: typically from age 60-65 depending on scheme rules. Some allow earlier access on leaving employment if scheme rules permit.
• PRSA / personal pension: between ages 60 and 75
• Early access (50+): from age 50 if you are no longer working for the employer linked to the pension, or due to serious ill health
• My Future Fund: age 66

You can take up to 25% of your pension pot as a tax-free retirement lump sum, subject to a lifetime cap of EUR 200,000 combined across all your pensions. Tax treatment of larger lump sums:

• Up to EUR 200,000: tax-free
• EUR 200,001 to EUR 500,000: taxed at 20% (standard rate)
• Over EUR 500,000: taxed at marginal rate (40%), plus USC and PRSI

To take the full EUR 200,000 tax-free, you would need a pension pot of at least EUR 800,000 (25% × 800k = 200k). Occupational scheme members with 20+ years of service may also use a "1.5 times final salary" calculation, subject to the same EUR 200,000 lifetime cap.

After taking your tax-free lump sum, the remaining balance can typically be used in one of two ways:

• Approved Retirement Fund (ARF): a personal investment account from which you draw down income. Funds remain invested. You must withdraw a minimum amount each year (currently 4% from age 61, 5% from 71). Withdrawals taxed at marginal rate.
• Annuity: a guaranteed lifetime income from an insurance company. Predictable but generally lower returns than ARF drawdown over the long term.

Some occupational scheme members may also receive their pension as a guaranteed lifetime income directly from the scheme (a defined benefit pension).

Indicative retirement income benchmarks (after tax, excluding mortgage/rent) for a one-person household:

• Modest standard: ~EUR 20,000/year (basics, occasional treats, no car)
• Moderate standard: ~EUR 32,000/year (car, holidays, modest social life)
• Comfortable standard: ~EUR 45,000/year (multiple holidays, regular dining)

To support these on top of a full State Pension (EUR 15,564/year), with a 4% safe withdrawal rate from your private pension, indicative pot targets are roughly EUR 110k (Modest), EUR 410k (Moderate), EUR 735k (Comfortable). The Pensions Authority and IAPF generally recommend targeting two-thirds of pre-retirement income for a comfortable lifestyle.

How pension figures are derived from the official rates above.