Pensions

I am in my early 30s and have not made any pension contributions to date. I currently have a salary of €80,000. What is the maximum amount in can contribute and what tax relief can I get on this?

5th December 2012

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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