Pension Glossary

By Irish Life Assurance

Extra contributions you can pay into your pension on top of benefits already available from your company pension plan.

A guaranteed income (or Pension for Life) that can be bought with your pension plan after you retire. This income is paid on a regular basis for the rest of your life.

When you retire you can invest the money in your pension plan into a personal investment account called an ARF. You can withdraw money from your ARF when you need it.

The date you want to retire and take your pension benefits. Your chosen retirement age must be between age 60 and 75 for PRSAs or personal pensions or between 60 and 70 for company pensions.

A pension that your company makes available for its staff. Your employer must contribute to the pension, you may also pay employee contributions and / or AVCs.

The measurement of change in prices of household goods and services over time, i.e., transport, food, and medical care.

A company pension plan that usually has defined regular contributions, i.e. 10% of your salary goes into your pension plan each month. DC company pension plans have no guarantees; the benefits available at retirement will depend on several factors like contributions paid, fund performance, plan charges etc.

These are also known as single contributions, as they are not paid into your pension plan on a regular basis and can often be different amounts of money.

A way of saving for an income after retirement.

Convenient, flexible pension plans that you can take with you if you move jobs. PRSAs are available to everybody up to the age of 75, whether you are employed, self-employed, work at home or on a temporary career break.

Typically set amounts of money which you pay into your pension on a regular basis (for example, every month or every three months) for a set period of time.