Media Q&A: Pension considerations for someone returning to work at 63

I’ve never given much thought to a pension before, but with our first child on the way, my partner and I are thinking ahead. I’m self-employed, and my partner is a member of his employer's pension scheme, though we’re not married. What are my options for starting a pension?

For self-employed individuals without access to an employer's pension scheme, starting a pension as soon as you can is crucial to building a secure retirement fund. Personal Retirement Savings Accounts (PRSAs) and Personal Pension Plans (or Retirement Annuity Contracts) are the main options available. PRSAs offer a standard option with capped fees to ensure cost efficiency, though they provide fewer investment choices compared to Personal Pension Plans and Non-Standard PRSAs. The latter options may have varying charges but offer more flexibility in investment selections. Tax relief on pension contributions is provided at your highest income tax rate – either 20pc or 40pc, depending on your age and earnings. You can claim tax relief against the previous years’ earnings on any pension contributions you make before filing your tax return.

Cohabiting couples who are not married should consider nominating each other as beneficiaries to ensure pension benefits transfer across should they pass away; many schemes typically only recognise spouses or civil partners automatically. Unfortunately, Auto-enrolment will not apply to you as you are self-employed, however this might change in the future. It is advisable to discuss your options with a Financial Broker to tailor a retirement plan that aligns with your specific needs.

ENDS

This article was published in The Irish Independent on 10 May 2025.