A Personal Pension is a pension plan issued by a life insurance company to an individual. There are no employer contributions made to the pension plan and as the name suggests, the plan is owned by the person who contributes to it. This type of pension product is most suitable for the self employed or to employees whose employer does not offer a pension scheme. Personal pension plans may be suitable for employees who are not in pensionable employment (i.e. not included in an occupational pension scheme by their employer). However depending on a number of factors, a PRSA may be more suited to an employed individual. See the PRSA page for comparison to personal pensions. When you retire On retirement you can take a tax-free lump sum of 25% of your fund, up to a maximum of €200,000 (as at July 2015). The remainder of your fund can then be invested in an Annuity or Approved Retirement Fund.