Top Up Your Pension To Minimise Your Tax Bill

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Now is the time to review your pension and top up before 31st October 2023 to maximise tax relief. Income Tax relief is available against earnings from your employment for your pension contributions.

The benefits of maximising your pension are huge. Firstly, you are providing for adequate retirement income and secondly you are minimising your tax bills.

Income tax relief is available for pension contributions to any of the following pension plans:

• Occupational pension schemes
• Personal retirement saving accounts
• Retirement annuity contracts
• Qualifying overseas plans

Tax relief on contributions to personal pension schemes is available at your marginal (highest) rate of tax subject to an income cap of €115,000 and contribution rates ranging from 15% to 40% of earnings depending on age:

Table:

Age                             % Net Relevant earnings*

<30                             15%

30-39                          20%

40-49                          25%

50-54                          30%

55-59                          35%

60+                             40%

* Subject to earnings cap of €115,000

If you are coming or returning to Ireland, you can get tax relief for pension contributions made to pre-existing plans with a pension provider in another EU Member State.

Subject to the maximum limits, you may make a pension contribution before the personal tax return filing date for 2022 (i.e. 31st October 2023) and carry the contribution back for inclusion on your 2022 tax return and thereby claim tax relief for 2022. 

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