As the rules around single-member schemes change, Davy’s Fergal Roche argues that compliance should be seen as an opportunity to build a better plan

In a year already marked by financial uncertainty, from trade tensions and fiscal policy drift to broader questions about Europe’s economic direction, the need for clarity in long-term planning has rarely felt more urgent.

For business owners and professionals, whose financial lives often sit outside the simplicity of PAYE models, the stakes are particularly acute.

Pensions have long played a central role in the financial strategies of this group, but rarely through conventional means.

Single or one-member arrangements like Executive Pension Portfolios (EPPs) and Small SelfAdministered Schemes (SSASs) offered what standard products could not — control over investment decisions, access to advice, and the ability to align retirement savings with broader business, tax and estate planning.

But the framework that enabled that autonomy is coming to an end.

The IORP II Directive, originally transposed into Irish law in 2021, was designed to enhance governance, transparency and risk management across European occupational pensions.

The Irish Pensions Authority has since made it clear that singlemember arrangements, even if well-run, do not meet the directive’s standards.

A five-year derogation was put in place, allowing existing schemes to continue temporarily. But that window closes next April.

The question facing pension holders is not whether change is required, but what form that change should take.

A number of alternative structures are available: Personal Retirement Savings Accounts (PRSAs), Personal Retirement Bonds (PRBs), Approved Retirement Funds (ARFs), and, in certain cases, overseas arrangements.

Each has its own particular pros and cons. But for those seeking continuity in terms of funding flexible investments and advice, one structure takes precedence: the master trust. Self-directed master trusts are likely to be the option of choice for those seeking a pension structure that is most closely aligned with the benefits provided by one-member arrangements.

This model is gaining traction for good reason.

It preserves much of the autonomy that made single-member schemes appealing, while introducing the scale, compliance and oversight demanded by the new regulatory framework.

For professionals and owner-directors used to tailoring their financial strategies closely to their goals, it offers a familiar degree of flexibility within a more robust institutional wrapper.

This call to action also presents a chance for individuals to bring their pension strategy into alignment with wider financial objectives.

The increased Standard Fund Threshold (SFT), announced in Budget 2025, allows high earners to build retirement benefits of up to €2.8m by 2029, significantly more than the previous €2m cap.

This creates renewed opportunity for those with the means to contribute, provided their chosen structure supports it.

New limits introduced in January on employer contributions to PRSAs have altered their attractiveness as a funding vehicle for company directors and owner-managers.

What was previously a flexible catch-all pension structure may now fall short for those seeking to maximise retirement funding through their businesses.

For many, pensions have been an area of passive planning, set up once, reviewed infrequently and often siloed from broader financial strategy.

That approach is no longer fit for purpose.

Regulation has forced a decision, but the more strategic view is to treat this moment as a reset. A chance to take control.

Time is now a factor. Significant financial transitions shouldn’t be carried out last-minute. Choosing the appropriate structure, aligning it with your goals and ensuring a smooth migration of assets and strategy all require careful consideration.

Those who act early will have the space to make deliberate, well-supported decisions.

Those who delay may find themselves reacting under pressure, with fewer opportunities and greater risk of being funnelled into default options that prioritise compliance over fit.

The real opportunity lies in treating this not as a compliance burden, but as a chance to build a better plan for the future.

Photo: Davy’s Fergal Roche