Running your own business gives you a lot of freedom. One freedom that does not get talked about nearly enough is the ability to structure your pension contributions in a way that simply is not available to employees. For company directors in Kildare and across Ireland, that difference can add up to tens of thousands of euro over a working life.
This guide is for directors who want to understand their options clearly, without the jargon. We cover Executive Pensions, how company contributions work and how they compare to a PRSA so you can have a genuinely informed conversation with your adviser.
Why pension planning is different when you run the business
Employees follow a relatively straightforward path. Their employer might offer a workplace scheme, they contribute what they can and the company tops it up.
As a director, you get to set the rules. You decide how much the company contributes, when those contributions happen and how they are structured. That flexibility is genuinely powerful, but it also means the decisions sit with you. Getting them right early matters more than most directors realise.
There is also the tax angle. Contributions made by your company into an approved pension arrangement are treated as a business expense, which means they reduce your Corporation Tax liability. That is a very different picture to making personal contributions from income that has already been taxed.
If you are based in Naas, Newbridge, Celbridge or anywhere in Kildare, this is exactly the kind of conversation Gwen Clarke and the team at GCFS have been working through with business owners for nearly three decades. You can find out more on the GCFS pensions page or call 045 916080 for a no-obligation chat.
What is an Executive Pension and why directors choose it
An Executive Pension (sometimes called a 'Master Trust' arrangement) is a company pension scheme set up by a business for key personnel, including directors. The company makes the primary contributions, though the director can also contribute personally on top.
It is different from an ordinary personal pension in one important way. The contributions come from the company's profits before tax rather than the director's personal income. For a business owner who wants to keep both personal and corporate tax bills as low as possible, that distinction matters enormously.
Executive Pensions in Ireland are approved by Revenue, which means contributions, investment growth and retirement proceeds all benefit from significant tax treatment. The scheme can also include life cover and income protection as part of the overall package, which makes it useful well beyond just retirement funding.
One benefit that many directors are not aware of upfront is the retirement lump sum option. With an Executive Pension, you can take up to 1.5 times your final salary as a tax-free lump sum at retirement, compared to the standard 25% lump sum available through other pension types. For a director in Kildare town, Athy or Maynooth who has been building a salary over many years, that difference can be very substantial in cash terms.
If you want the full detail on how these schemes work and what they include, visit our Executive Pension service page at gcfs.ie for the retirement options and benefit structure in depth.
The tax and contribution advantages of an Executive Pension
This is the question most directors ask first and the answer is more nuanced than a single number.
Revenue sets personal contribution limits based on your age and the salary on which contributions are calculated. Personal contributions are capped as a percentage of your earnings up to €115,000 per year. That percentage rises with age, as set out by Revenue.ie:
| Age | Max personal contribution (% of earnings up to €115,000) |
|---|---|
| Under 30 | 15% |
| 30 to 39 | 20% |
| 40 to 49 | 25% |
| 50 to 54 | 30% |
| 55 to 59 | 35% |
| 60 or over | 40% |
Company contributions sit in a different category and can, in certain circumstances, go beyond those personal limits when Revenue's 'two thirds final salary' rules are applied. These rules calculate what the pension fund needs to deliver a target income at retirement and allow the company to contribute accordingly.
There is also a lifetime limit to be aware of. The 'Standard Fund Threshold' currently sits at €2.2 million in 2026, rising in stages to €2.8 million by 2029. This is the maximum value of pension benefits you can build without incurring additional tax on the excess. You can check the current threshold directly on the Revenue Standard Fund Threshold page.
The figures interact with your salary, your age, how long the pension has been running and what your retirement date is. Getting a proper calculation done early, ideally by someone who does this regularly, saves directors from both underfunding and from inadvertently triggering a tax charge further down the line.
If you are in Clane, Sallins, Naas or anywhere in the Kildare commuter belt and have not had this conversation with an adviser yet, it is almost certainly worth a call.
Is a PRSA the better option for some directors
For some directors, a 'Personal Retirement Savings Account' or PRSA is worth considering, particularly where flexibility is the priority.
A PRSA is a personal contract between you and an approved provider. Since 2023, the rule that previously restricted employer contributions into a PRSA was removed, which means employer contributions are now allowed on much more favourable terms than before. That change, confirmed by the
PRSAs can also suit directors who are earlier in their career, who move between roles or who want to consolidate pension savings from different employment periods into one place.
The difference compared to an Executive Pension is usually around contribution structure and investment flexibility. Executive Pensions tend to offer more scope for significant company contributions when the director's salary and term allow, while PRSAs work better in certain personal circumstances.
Executive Pension vs PRSA at a glance
Neither product is universally better. The right choice depends on your company structure, your salary, your age, how long you have been in the business and what you want retirement to look like.
| Executive Pension | PRSA | |
|---|---|---|
| Who contributes | Company (primary), director personally too | Director personally; employer now allowed |
| Contribution source | Company profits before tax | Personal income (post-PAYE in most cases) |
| Age-based relief cap | Up to 40% of earnings to €115,000 | Same Revenue limits apply |
| 1.5x salary lump sum | Yes, available at retirement | No, 25% lump sum only |
| Investment choice | Broad, including bespoke strategies | Broad but depends on provider |
| Portability | Tied to the company structure | Fully portable between employers |
| Best suited to | Established directors, higher salary | Earlier career or transitional phase |
Executive Pensions tend to suit directors who have an established salary, who want the company to carry the primary contribution burden and who are looking to build a substantial fund over a defined period. They are particularly well suited to directors in their 40s and 50s who want to accelerate pension funding after years of reinvesting in the business.
PRSAs can suit directors who are at an earlier stage, who are moving between companies or directorships, or who simply want a clean and portable arrangement. In practice, the same director might reach a different conclusion five years later depending on where the business is.
We often find that directors are not sure which option applies to them until they sit down and run through the numbers together. That is not a failure of research on their part. It is just that the right answer genuinely depends on individual circumstances and that is exactly what we are here for.
Getting the pension decision right from the start
The single most common thing Gwen hears from directors who come to GCFS later in their career is some version of 'I wish I had started sooner.' That is not a criticism, it is just the reality of running a business. Pension planning rarely feels urgent until it suddenly does.
The good news is that the Revenue rules are relatively generous for directors who start at 40 or even 50, because the age-based contribution percentages are higher for older age bands. A director aged 55 in Newbridge or Kilcullen can contribute up to 35% of earnings up to €115,000 personally, before you even factor in what the company can add. That is a meaningful amount of ground to cover in a relatively short window.
The less good news is that underfunding and over-funding can both cause problems and the difference between them is not something most directors want to work through alone. Getting a proper review done early, ideally before the business enters its growth phase, tends to produce the best outcomes.
GCFS is regulated by the Central Bank of Ireland and Gwen holds QFA and LIA qualifications. If you are based in Naas, Athy, Maynooth or anywhere across Co. Kildare and you are a director who has not yet had a proper pension review, give the team a call or see the full range of pension services.
Frequently asked questions about Executive Pensions and PRSAs for directors
What is the difference between an Executive Pension and a PRSA for a company director in Ireland?
An Executive Pension is a company scheme set up by the business, with the company making the primary contributions from its profits before tax. A PRSA is a personal contract between the director and an approved provider, funded mainly from personal income, though employer contributions are now permitted since 2023. Executive Pensions tend to suit established directors with a structured salary and a defined company, while PRSAs offer more portability and simplicity for those at an earlier career stage.
How much can my company contribute to an Executive Pension in Ireland?
Company contributions are calculated using Revenue's 'two thirds final salary' funding rules. These determine how much the fund needs to reach a target retirement income and allow the company to contribute accordingly. Personal contributions are capped at a percentage of earnings up to €115,000, ranging from 15% (under 30) to 40% (60 and over). Company contributions can go beyond these personal limits in some circumstances. See the Revenue pension contribution guide for the full rules.
What is the Standard Fund Threshold and does it affect Executive Pensions?
The Standard Fund Threshold is the lifetime cap on pension benefits you can build before a tax charge applies. In 2026 it is €2.2 million, rising to €2.8 million by 2029. It applies to all pension arrangements, including Executive Pensions. If your fund exceeds the threshold, a 40% tax charge applies to the excess. Directors with significant company contributions should track this carefully. The current figure is published on the Revenue Standard Fund Threshold page.
Can a company director in Kildare get an Executive Pension and a PRSA at the same time?
Yes, in principle. Whether it makes sense depends on your circumstances, the structure of your company and how your overall retirement planning sits. Some directors hold both arrangements at different stages of their career. The key is that contributions across all pension arrangements count toward the same Revenue limits, so getting proper advice before setting up multiple schemes is important.
What tax-free lump sum can I take from an Executive Pension at retirement?
An Executive Pension offers two main lump sum options at retirement. The first is the standard 25% tax-free lump sum. The second, which is specific to Executive Pensions, is a lump sum of up to 1.5 times your final salary, also taken tax-free. For directors who have been drawing a salary for a number of years, the 1.5x option can be significantly more valuable. Your overall tax-free lump sum across all pension arrangements is subject to a lifetime cap of €200,000, so getting the structure right matters.
Is GCFS regulated to advise on Executive Pensions in Ireland?
Yes. Gwen Clarke Financial Services is regulated by the Central Bank of Ireland and Gwen holds QFA and LIA qualifications. GCFS has been advising business owners and directors across Kildare and the wider Leinster area on pension planning since 2007. You can check GCFS authorisation on the Central Bank registers.
Executive Pension advice for directors across Co. Kildare
GCFS is based in Naas and works with company directors right across the county. Whether your business is in Newbridge, Celbridge or Leixlip, whether you are closer to Maynooth, Kilcock or Clane, or whether you are based further south in Athy, Monasterevin or Kildare town, the pension questions for directors are the same and the Revenue rules apply equally across every part of Co. Kildare.
Gwen and the team regularly sit down with directors from Sallins, Kilcullen and Rathangan as well as business owners from the many commercial and industrial estates that have grown around Naas and Newbridge over the past two decades. The GCFS office in Naas is straightforward to get to from anywhere in the county and plenty of initial conversations happen over the phone just as easily.
If you are a director anywhere in Co. Kildare who has not yet had a proper pension review, give the team a call on 045 916080. It is not a sales call.