Pension contributions receive tax relief at your marginal rate, potentially saving you 40% on every euro contributed. But there are age-related limits on how much you can contribute.
Under 30: 15%, 30-39: 20%, 40-49: 25%, 50-54: 30%, 55-59: 35%, 60+: 40%. All percentages are of net relevant earnings, capped at EUR 115,000.
If you have unused relief from prior years (because you contributed less than the maximum), you can make additional voluntary contributions (AVCs). Employer contributions have no percentage limit and are not treated as BIK.
Emma is 42 and earns EUR 90,000. Her age-related limit is 25% of net relevant earnings. Maximum tax-relievable contribution: EUR 90,000 x 25% = EUR 22,500. At a marginal rate of 40%, the tax saving is EUR 22,500 x 40% = EUR 9,000.
If Emma earns EUR 130,000, the earnings cap of EUR 115,000 applies. Maximum contribution: EUR 115,000 x 25% = EUR 28,750. Tax saving: EUR 28,750 x 40% = EUR 11,500.
If you have unused relief (because you contributed less than the maximum in prior years), you can make AVCs to use it up. AVCs can be made up to the filing deadline for the relevant tax year. This is a powerful strategy for catching up on pension funding.
Self-employed individuals can contribute to a Personal Retirement Savings Account (PRSA) or a Retirement Annuity Contract (RAC). The same age-related limits apply. Contributions are deducted from self-employment income on your Form 11.
You can access your pension from age 60 (50 in certain circumstances). At retirement, you can typically take 25% of the fund as a tax-free lump sum (up to EUR 200,000, with the next EUR 300,000 taxed at 20%). The remainder goes into an Approved Retirement Fund (ARF) or used to buy an annuity.
Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.