Take Advantage of Income Tax Relief
To encourage people to save for retirement, the Government provides significant income tax relief on many pension plans. If you qualify for relief it can make saving for retirement through a pension plan great value for money.
Income Tax relief is not guaranteed. You can get tax relief if your income is taxed under Schedule E or Schedule D (case I or II).
Maximum income tax relief as a % of your earnings
Income tax relief in Ireland is given at an individual’s marginal rate. This will either be 40% for a top rate tax payer or 20% for a standard rate.
For example, putting €100 into a regular savings plan would cost you €100 but putting the same amount into a pension plan could only cost you €80 if you are a standard rate tax payer or €60 if you are a top rate tax payer.
There are income tax relief limits, which mean there is a cap on the amount of income that can be contributed to a pension each year. The maximum pension contributions, in any one year, for which you are entitled to tax relief (if eligible), is related to your age and is expressed as a percentage of your gross income. The maximum gross income figure for relief purposes is €115,000.
Pension income tax in retirement is subject to tax.
| Age | Percentage of earnings you can contribute |
|---|---|
Under age 30 | 15% |
30 to 39 | 20% |
40 to 49 | 25% |
50 to 54 | 30% |
55 to 59 | 35% |
60 and above | 40% |
Resources
Download our helpful age related pension guides
3 Easy Steps To Get Started
Try our pensions calculator tool, or contact a Financial Broker or Advisor.
Our pensions calculator will help you to estimate what your monthly pension savings should be in order to help you secure the future you want.
Try our pensions calculator tool, or contact a Financial Broker or Advisor.
Our pensions calculator will help you to estimate what your monthly pension savings should be in order to help you secure the future you want.
Calculate your pension
You will need the following to use our pensions calculator:
- Annual salary
- Current pension value
- Employer’s monthly pension payment amount
Get financial advice
To arrange a pension with us, we always recommend you talk to your Financial Broker or Advisor.
Need an advisor?
If you don't have an advisor, you can talk to our tied intermediary Irish Life Financial Services Ltd using the callback form below.