Contributing to a Pension – how does it work?

A Pension is a long-term savings plan which aims to provide you with an income in retirement. Pensions can be seen as complex but, the benefits of contributing to a pension are simple, you get tax relief on contributions you make from your salary. (20% / 40% depending on your income)

A Single person with a salary of over €35,501 per annum, can get tax relief of 40% on all contributions they make. This means if you put €100 into your Pension, it only costs you a net amount of €60, as €40 is given back to you through tax relief.

So, how much can you contribute?

Your age determines how much of your salary you can contribute to your pension every year. The below table shows how much of your salary (To a maximum salary of €115,000) that you can put into your pension and receive tax relief.

 

Are you looking to start contributing to a pension?
Give us a call today to arrange a free 15-minute consultation
to discuss the best options for you.

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