Pension Glossary

A financial product that converts your pension pot into a guaranteed regular income for life or a fixed term.

An investment fund you can move your pension into at retirement, giving you flexibility to draw down income while keeping your money invested.

A planned government scheme to automatically enrol employees into a workplace pension. Employees can opt out, but contributions are made unless they do.

Extra contributions you make to boost your pension savings, often with tax relief.

Also called a Personal Retirement Bond. It holds the value of a pension you’ve left behind with a previous employer.

A pension where the income you receive in retirement is based on your salary and how long you worked for your employer.

Your pension pot is based on what you and/or your employer contribute, plus any investment growth. The value may go up or down over time.

A pension you’re no longer paying into but will be available when you reach retirement age.

Taking income or lump sums from your pension fund after retirement, typically via an ARF.

The age set by your pension scheme at which you can access your benefits without penalty—commonly age 65.

A court order issued during separation or divorce that splits pension entitlements between parties.

Also called the tax-free lump sum. You can usually take up to 25% of your pension pot tax-free when you retire.

A retirement savings plan set up by an individual, often used by those who are self-employed or not in an employer scheme.

A flexible, personal pension account that anyone can contribute to, offering portability between employers and low fees.

An older type of personal pension for the self-employed, now largely replaced by PRSAs.

The Irish government’s pension based on your PRSI record. You need a set number of contributions to qualify.

If your pension pot is very small (typically under a certain threshold), you may be able to take it as a lump sum instead of a regular income.

Individuals or organisations who oversee an occupational pension scheme, ensuring it’s managed in members’ best interests.

The point at which you gain legal rights to your pension benefits, often after a minimum period of service.

A yearly update from your pension provider showing your current fund value, contributions, and projected retirement benefits.