Although Budget 2013 did reduce the tax relief that can be claimed on pensions the good news is that this does not take affect until 1st January 2014.
Currently a person in their 30's can make a pension contribution of up to 20% of their income and claim tax relief on this payment. This means you can make a pension contribution of €16,000 in both 2012 and 2013 and claim a tax refund of up to €6,560 on each payment.
From the 1st January 2014 the maximum amount you can contribute will be reduced to €12,000. This will result in a tax refund of €4,920 – a reduction of €1,640.
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