For sole traders, contractors & freelancers in Ireland
My Future Fund only covers employees. If you work for yourself, a PRSA is the main way to save for retirement — and to cut your income tax bill. Plain-English guides, no sales pitch.
Who's covered in 2026
Monthly, or one lump sum at year end. No minimum commitment.
Claim relief at 20% or 40% on your tax return, within your age limit.
Growth inside the PRSA isn't taxed year to year. Values can go down as well as up.
Up to 25% as a lump sum, partly tax-free. The rest as income.
Revenue lets you deduct pension contributions up to an age-based share of your earnings. Move the sliders to see your limit and your real cost.
is above your limit and gets no tax relief this year.
Estimate of income tax relief only, based on 2026 Revenue age limits. USC and PRSI are not reduced. Check your figures with Revenue or a qualified adviser.
| Age | Max % of net relevant earnings | Max on €115,000 cap |
|---|---|---|
| Under 30 | 15% | €17,250 |
| 30–39 | 20% | €23,000 |
| 40–49 | 25% | €28,750 |
| 50–54 | 30% | €34,500 |
| 55–59 | 35% | €40,250 |
| 60 and over | 40% | €46,000 |
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Generally, yes. If you have a salaried job and also earn on the side as a sole trader, you can be auto-enrolled on the salary and pay into your own PRSA based on your self-employed profits. The two work differently: My Future Fund contributions get a state top-up instead of tax relief, while PRSA contributions get income tax relief. How the limits interact in your case is worth confirming with an adviser.
For a sole trader, it's broadly your taxable profit from your trade or profession, after capital allowances and trading losses. Salary from a job without its own pension can count too. Rental income, dividends and other investment income don't. Relief is worked out on earnings up to €115,000 a year.
A PRSA doesn't force you to keep paying. You can stop, lower or pause contributions at any time, and restart when work picks up. Your relief limit for the year falls with your profit. If you pay in more than the limit, the extra can usually be carried forward and claimed in a later year.
Normally from age 60, and you must start drawing it by 75. Earlier access is only possible in limited cases such as serious ill health. At retirement you can usually take up to 25% as a lump sum, with the first €200,000 of lump sums tax-free over your lifetime. The rest can go into an Approved Retirement Fund (ARF), buy an annuity, or in some cases be taken as taxable cash.
General information based on Irish rules as of 2026. Your situation may differ — check with Revenue or a qualified financial adviser before acting.