Under a pension scheme for a Company Director, all the usual pension tax advantages would apply:

  • Director can make personal contributions and receive income tax relief at their usual rate
  • All investment growth is applied tax-free
  • At retirement entitled to a tax-free lump sum of at least 25% of the total fund value


Company Directors have a unique advantage when it comes to funding for retirement. In addition to the tax benefits above, the following benefits also apply:

  • Not restricted to age-related contribution limits like employees and the self-employed
  • Pension contributions can be paid for by the company
  • Pension contributions are tax-deductible expenses
  • No benefit-in-kind implication for director
  • No impact on director’s personal contribution tax relief
  • Most tax-efficient way of moving company profits to personal wealth



John, company director age 45 on a salary of €60,000.

He hopes to retire at age 68 and he’s married and has no pension in place.

He considered starting a Personal Pension but his Financial Advisor recommended an Executive Pension instead, with contributions paid for by the company.


Company Funding

Not allowable

Max allowable €45,888 p/a

Personal Funding

Max allowable €15,000 p/a

Max allowable €15,000 p/a


By proceeding with a company pension, John can invest over €45,000 per year in his pension without using his salary, with zero benefit-in-kind or tax implications.

This €45,000 contribution is a tax-deductible expense for the company.

If you would like more information please contact INNOVU Insurance Financial Services team today on 0818 222 700.