Company Director Pension Westmeath | Ferris Financial Planning
If you are looking for a company director pension Westmeath adviser, Ferris Financial Planning can help you understand your options and build a tax-efficient retirement plan.
But here’s the thing: as a company director, you have access to one of the most powerful and tax-efficient pension structures available in Ireland — the Executive Pension (also known as a Company Director Pension or Occupational Pension Scheme). And most directors in Westmeath either don’t know about it, or aren’t making full use of it.
A company director pension Westmeath review can help you decide whether an Executive Pension, PRSA or another pension structure is most suitable for your business and retirement plans.
This guide is written specifically for limited company directors in Mullingar and Westmeath. We’ll explain how director pensions work, how much tax you can save, and the key difference between an Executive Pension and a PRSA — so you can make an informed decision about your retirement.
Why Company Directors Need a Different Approach to Pensions
As a PAYE employee, your pension options are fairly straightforward — join your employer’s scheme, or set up a PRSA. But as a company director, you sit in a different category. You’re both an employer and an employee, which means you can contribute to your pension from two separate streams:
- Personal contributions from your salary (with income tax relief up to 40%)
- Company contributions on your behalf (which are a business expense and not subject to BIK — Benefit in Kind)
That second point is crucial. Your company can make contributions into your pension as a legitimate business expense, reducing your corporation tax bill at the same time as building your retirement fund. No other investment or savings vehicle in Ireland allows you to do this.
The Tax Case for a Director’s Pension in Ireland
Let’s talk numbers, because this is where the picture really becomes clear for directors.
Personal Contributions — Up to 40% Tax Relief
If you’re drawing a salary from your company, you can make pension contributions as a percentage of that salary and claim income tax relief. The relief is 20% at the standard rate, or 40% if you’re paying the higher rate of tax. In simple terms:
A €1,000 contribution only costs a higher-rate taxpayer €600 out of pocket. Revenue tops it up to €1,000 automatically. This is one of the few guaranteed, immediate returns available on any investment.
Company Contributions — Tax-Efficient and Uncapped by Age
This is where an Executive Pension really stands out from a standard PRSA. When your company makes contributions on your behalf, those contributions are treated as a company expense — they reduce your corporation tax bill (currently 12.5% for trading income) and do not count as a salary in your hands.
That means:
- No income tax on the contribution
- No PRSI or USC on the contribution
- Corporation tax deduction for the company
For many directors in Mullingar and Westmeath, this is significantly more tax-efficient than taking the money as salary and then contributing personally.
A Practical Example
Take a Mullingar-based company director with a profitable business. Rather than taking an additional €20,000 as salary — which would be taxed at 40% income tax, plus PRSI and USC — the company contributes that €20,000 directly into an Executive Pension.
The full €20,000 goes into the pension pot. The company gets a corporation tax deduction. The director pays no income tax, PRSI, or USC on it. That is potentially €10,000+ in tax savings on a single contribution — savings that compound in value over the years the fund is growing.
For many business owners, the key question is not simply whether to start a pension, but which company director pension Westmeath option gives the best balance of tax efficiency, flexibility and long-term retirement value.
Company Director Pension Westmeath: Executive Pension or PRSA?
Many directors across Westmeath set up a PRSA because it’s simple and familiar. And while a PRSA is a solid option, it’s worth understanding exactly what you might be giving up.
Since 2023, the rules around employer contributions to PRSAs were updated — your company can now contribute to your PRSA without being subject to the old BIK rules. This was a significant improvement and made PRSAs more attractive for directors.
However, an Executive Pension (Occupational Pension Scheme) still has some important advantages for directors, particularly those who:
- Want greater control over the investment strategy
- Are making large company contributions and want to maximise the tax efficiency of every euro
- Have employees and want to run a company-wide scheme
- Are approaching retirement and want to plan the draw-down of their fund in the most tax-efficient way possible
The right answer depends on your specific circumstances — the structure of your company, your salary, your age, and your retirement goals. This is exactly the kind of question we help directors in Mullingar and Westmeath work through at Ferris.
How Much Can a Company Director Contribute to a Pension?
This is one of the most common questions we get from directors, and the answer has a few layers to it.
Personal Contributions — Age-Related Limits
Revenue sets annual limits on personal contributions as a percentage of your salary, depending on your age:
- Under 30: up to 15% of net relevant earnings
- Age 30–39: up to 20%
- Age 40–49: up to 25%
- Age 50–54: up to 30%
- Age 55–59: up to 35%
- Age 60 and over: up to 40%
There is also an earnings cap of €115,000 per year, meaning the maximum you can get personal tax relief on is a percentage of €115,000.
Company Contributions — The Actuarial Approach
Company contributions are governed by Revenue’s funding rules, which are broadly aimed at building a pension pot that will provide you with a reasonable income in retirement. The maximum approvable fund at retirement is currently €2,000,000.
In practical terms, this means the amount your company can contribute each year depends on your age, current fund value, salary, and how many years you have to retirement. A financial adviser will carry out funding calculations to determine the maximum allowable contribution for your situation.
Why Westmeath Directors Should Act Sooner Rather Than Later
There’s a real cost to waiting. Not just in compound growth lost, but in tax savings foregone. Every year you run a profitable business without maximising your pension contributions is a year you’re paying more corporation tax than you need to.
Here’s a common scenario we see among directors in the Mullingar area:
A business owner in their late 40s comes to us having built a successful company over 15 years. They’ve been paying themselves a modest salary to minimise their personal tax bill, but leaving significant retained profits sitting in the company. They haven’t set up a pension because they assumed the business itself was their retirement plan — they’d sell it when the time came.
The reality is that selling a business isn’t always straightforward, and the proceeds are taxable. A well-structured pension, built up over the same period, could have provided a much larger and more tax-efficient retirement income — while also saving substantial corporation tax along the way.
What Happens When You Retire? Drawing Down Your Director’s Pension
Understanding the pension build-up phase is important, but so is knowing what happens when you actually retire. Here’s what the draw-down looks like for directors:
Tax-Free Lump Sum
At retirement, directors can typically take a tax-free lump sum. This can be structured in different ways depending on the pension structure in place, but under Revenue rules, the maximum tax-free lump sum from all pension sources is €200,000.
ARF or Annuity
After taking the lump sum, the balance of your pension fund can be moved into an Approved Retirement Fund (ARF) — where you stay invested and draw an income on your own schedule — or used to purchase an annuity, which provides a guaranteed income for life.
Most directors opt for an ARF for the flexibility it provides. An ARF lets your money stay invested, continues to grow tax-free, and allows you to pass remaining funds on to your family when you die — something an annuity doesn’t allow.
Pension Advice for Company Directors in Mullingar — Talk to Ferris
At Ferris Financial Planning, we work with company directors across Mullingar, Athlone, and the wider Westmeath area to help them build structured, tax-efficient pension plans that actually fit the reality of running a business.
We take the time to understand your business structure, your salary, your existing savings, and what you want retirement to actually look like — and we build a plan around that. No jargon, no generic advice, no pressure.
If you would like to review your company director pension Westmeath options, Ferris Financial Planning can help you compare the available structures and make an informed decision.
Whether you’re just starting out as a director, have been trading for years without a pension, or want to review what you already have in place, we’d love to have that conversation.
You may also enjoy this post ‘when to start a pension’ → https://ferris.ie/insight/2026/when-should-i-start-a-pension-mullingar/
