If you’re a company director or business owner in Ireland, chances are you’re used to thinking long-term – building a team, growing your revenue, managing risk. But when it comes to your own financial future, many directors admit they’ve been too busy running the business to think much about pensions.
That’s where a director’s pension comes in. It’s not just about retirement – it’s a smart, strategic way to move company profits into personal wealth, reduce your tax bill, and create long-term financial security.
And in 2025, the landscape around director pensions is shifting again – so it’s worth taking a moment to make sure you’re on top of the latest rules and opportunities.
New Rules for 2025: What’s Changed?
From 1st January 2025, employer contributions to PRSAs has been capped at 100% of your salary. In other words:
- If your salary is €80,000, the company can contribute up to €80,000 to your PRSA tax-free.
- Any amount above this is now treated as a Benefit-in-Kind (BIK), and taxed accordingly.
While some see this as a step back from the rules that were in place in 2023 and 2024, we see it as an important reminder: the pension planning space is always evolving, and directors, as business leaders and job creators, need proactive, future-focused advice to match their contribution and long-term vision.
Still Plenty of Opportunity
Even with the new PRSA cap, a director’s pension remains one of the most effective ways to extract value from your company. A PRSA can still offer simplicity and flexibility. Executive Pensions may suit those with longer service or more complex needs. Occupational pension schemes can be ideal for directors in multi-person firms or where larger funding is needed. The key is choosing the right structure for your salary, age, and stage of business.
Real-Life Example: Strategic Planning in Action
A couple in their late 40s, both company directors, wanted to continue building their retirement fund while keeping things tax-efficient. With their salaries at €90,000 each, they were approaching the new PRSA cap.
We worked with them to split contributions: each maxed out their PRSA within the salary threshold, while also layering in Executive Pension structures to maintain their momentum. The outcome? A sustainable, tax-smart plan that supports both their business and personal goals.
Why This Matters
Too often, directors focus on looking after everyone else — the team, the business, the bottom line — and put off planning for their own future. But good financial planning is part of good business. Reviewing your director’s pension now helps you stay ahead of upcoming changes and make the most of what’s available to you.
Talk to Us
At Chartered Capital, we work with directors who want to think strategically — not just about this tax year, but the next 20 years and beyond. We’ll help you make informed, confident decisions that match your business journey and personal priorities.
📩 Let’s talk pensions — and make sure your future is part of the plan.
In Their Own Words
