Navigating the IORP II Pension Changes: Why You Need a Financial Advisor in Your Corner

22 April 2026 Deadline

If you hold a One Member Arrangement, such as an Executive Pension or a Small Self-Administered Scheme established before April 2021, the rules governing your retirement savings are undergoing a massive transformation. The European IORP II directive is bringing strict new regulations, and navigating these changes requires proactive, strategic decision-making.

IORP II is an EU directive designed to raise governance standards, but in practice, it places heavy compliance rules on trustees. The derogation that previously allowed small, single-member schemes to operate without strict oversight is officially ending on 22 April 2026. To keep your current scheme open, you would need to appoint independent trustees, implement risk management frameworks, and conduct detailed annual reporting. Achieving this compliance is prohibitively expensive for most single-member schemes.

Preventing the Accidental Default Transfer

If you do nothing, your provider will likely wind up your scheme automatically, resulting in your assets being moved into a Master Trust without your active decision. A financial advisor ensures your pension strategy remains deliberate. They will ask the crucial question: do you want control over your investments, or do you want less input?

Unlocking the PRSA Alternative

A financial advisor can facilitate a strategic move to a Personal Retirement Savings Account (PRSA) before the deadlines hit. Your employing company can contribute up to 100% of your total remuneration in a calendar year, with full Corporation Tax relief and no Benefit in Kind.

Beating the Operational Deadlines

While the ultimate regulatory line in the sand is April 2026, the operational deadlines to restructure your pension without financial penalties are much closer. A financial advisor can manage these strict timelines, ensuring your applications are submitted well in advance of key dates.

Notice: The above information does not constitute advice. SMP Financial Ltd is regulated by the Central Bank of Ireland.