When you leave a job in Ireland, you might wonder what happens to the pension you’ve built up. What happens to your pension savings mainly depends on the type of pension plan you have—such as a Personal Retirement Savings Account (PRSA), Employer Pension Scheme, or Additional Voluntary Contributions (AVCs)—and your personal circumstances. Understanding these options can help you manage your pension wisely and secure a strong financial future.

Personal Retirement Savings Account (PRSA)

If you have a PRSA, the good news is that it’s fully portable—you keep the PRSA and can continue contributing regardless of employment changes. PRSAs are ideal for those switching jobs frequently or who are self-employed. There are two main types: standard PRSAs, which have regulated limits on charges and investment options, and non-standard PRSAs, which offer a wider choice of investments but may have higher fees.

Employer Pensions

For employer pension schemes, you may have the option to transfer your benefits into a Personal Retirement Bond (PRB) or a PRSA. A PRB preserves pension funds from a previous employer, keeping them invested until retirement. This option is particularly useful if you have pensions from multiple past employers and wish to maintain control over your investment strategies and retirement options.

Additional Voluntary Contributions (AVCs)

AVCs are extra payments made on top of your usual company pension contributions to boost your pension benefits. They typically remain within your existing pension scheme or can sometimes be transferred to your new plan or a PRB, depending on the rules set by your pension providers. It’s important to note that AVCs can be made via your occupational pension scheme or through a PRSA, depending on your employment and pension situation.

Retirement Options and Tax-Free Lump Sum

At retirement, whether you stayed with one employer or changed jobs, you can take a 25% tax-free lump sum from your accumulated pensions—up to €200,000 tax-free in 2025, with 20% tax applied on the next €300,000. After this, you can choose how to generate retirement income: either through an annuity, which offers guaranteed income for life, or an Approved Retirement Fund (ARF), allowing you to keep your funds invested and withdraw income flexibly.

Summary

When leaving a company, your pension doesn’t disappear; it can be preserved, transferred, or managed to suit your retirement goals, Future Proofing Pension Plan. Understanding PRSAs, PRBs, AVCs, and tax-free lump sum options helps you make informed decisions to keep your retirement plan on track, regardless of your career path. Even small adjustments today can significantly impact your future financial security.

Frequently Asked Questions:

• Can I transfer my pension when I leave a job?

Yes, when leaving a job in Ireland, you generally have the right to transfer your pension benefits to another pension arrangement, such as:
A PRSA (Personal Retirement Savings Account), 
Another occupational pension scheme, or Overseas schemes, under certain conditions. 
Transfers after the normal retirement age are typically not permitted. PRSA providers cannot usually charge for transfers.

• What happens to my PRSA if I change jobs?

Your PRSA is fully portable across jobs in Ireland with no fees or penalties. You can keep contributing to your existing PRSA or transfer it to another PRSA or an occupational pension scheme. PRSAs offer flexibility for both employed and self-employed people. Your pension fund continues to grow until retirement and does not freeze. If you die before retirement, the PRSA fund will be passed on to your estate.

• Can I access my AVCs after leaving my company?

Additional Voluntary Contributions (AVCs) usually stay invested in your occupational pension scheme after you leave your job. Access to AVCs depends on your specific pension scheme’s rules and Revenue regulations. You may be able to transfer your AVCs to a PRSA or another pension scheme and access them at retirement. Early access is generally only allowed in cases of ill-health or serious illness; otherwise, AVCs cannot typically be accessed before retirement.

• How much of my pension can I take tax-free?

In Ireland, you can usually take up to 25% of your pension fund as a tax-free lump sum at retirement, subject to Revenue limits and statutory rules. The remaining pension amount is taxable when paid out as income or an annuity. For accurate calculations and personalised advice, it’s best to consult your financial adviser. For example, with a €200,000 pension fund, you can typically take €50,000 tax-free, within the lifetime cap of €200,000.

Example:

You can receive a tax-free lifetime limit of €200,000 on retirement lump sums from all sources. The amount between €200,001 and €500,000 is taxable at the standard rate of tax (20%). Any amount in excess of €500,000 is taxed under PAYE at the marginal tax rate (40%)
Source: Revenue.ie

For tailored pension advice or help transferring your pension after leaving a job, contact Stephen Donnelly (QFA) at Donnelly Financial Planning — regulated by the Central Bank of Ireland

Disclaimer:

This article is for general guidance only and does not constitute financial advice.
Please consult a regulated financial advisor for tailored recommendations.
Donnelly Financial Planning Ltd is regulated by the Central Bank of Ireland.