Pension guidance for freelancers, contractors and sole traders in Ireland
My Future Fund applies to eligible employees. If you work for yourself, a PRSA may be one way to build retirement savings, with qualifying contributions potentially eligible for income tax relief. Our guides explain the essentials in plain language.
Who may be covered in 2026?
Payment options depend on your provider; contributions may be made regularly or as a one-off payment during the year.
Eligible contributions may qualify for relief at 20% or 40%, depending on your circumstances and the applicable age-related limits.
Investment growth in a PRSA is generally not taxed each year, but the value of investments can go up as well as down.
Subject to the rules that apply to your circumstances, up to 25% may be available as a lump sum. The balance can be used to provide income in retirement.
Revenue sets age-based limits on earnings that can qualify for pension tax relief. Use the controls to estimate your limit and the possible after-relief cost of a contribution.
exceeds your limit and is not eligible for relief this year.
This estimate uses Revenue’s 2026 age-related limits to illustrate possible income tax relief. It does not account for USC or PRSI. Confirm how the rules apply to you 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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In general, yes. If you earn a salary and also have income as a sole trader, you may be enrolled through your job and contribute to a PRSA based on your self-employed profits. The schemes work differently: My Future Fund contributions receive a state top-up rather than tax relief, while PRSA contributions may qualify for income tax relief. It is worth confirming how the limits apply to your circumstances with an adviser.
For a sole trader, this generally means taxable profit from your trade or profession after capital allowances and trading losses. Salary from a job without a separate pension may also count. Rental income, dividends and other investment income are excluded. Relief is calculated on earnings up to €115,000 per year.
You are not required to maintain regular PRSA payments. You can stop, reduce or pause contributions and resume them when your income improves. Your annual relief limit decreases if your profit falls. Contributions above the limit can generally be carried forward for a future claim.
Access is generally available from age 60, and benefits must usually be drawn by age 75. Earlier access is limited to certain circumstances, such as serious ill health. At retirement, you can generally take up to 25% as a lump sum; the first €200,000 of qualifying lump sums is tax-free over your lifetime. The balance may be transferred to an Approved Retirement Fund (ARF), used to buy an annuity or, in some cases, taken as taxable cash.
This is general information based on Irish rules in 2026. Individual circumstances vary, so consult Revenue or a qualified financial adviser before making decisions.