Pension Tax Relief Ireland | Retirement Planning

Make sure you avail of your pension tax reliefs

Retirement Planning is something every business owner and professional needs to get right. There are generous pension tax reliefs available to encourage pension planning. These are:

Income Tax Relief – Personal payments made to your pension qualify for income tax relief depending on your age:

For example, a 42 year old who earns €40,000 per annum can get tax relief on annual pension contributions up to €10,000 at their marginal rate of income tax (41%). This means they can get a pension tax relief of (€40,000 x 25%) x 41% = €4,100.

Age	% of income allowed for tax relief
The maximum amount of earnings taken into account for calculating tax relief is €115,000 per year.
under 30	15%
30-39	20%
40-49	25%
50-54	30%
55-59	35%
60 or over	40%

Corporation Tax Relief – A Company Pension is designed for Company Directors and allows your company to contribute money directly to a pension for your benefit. Your business can also claim corporation tax relief on the payments. It’s a great way to transfer company profits to personal private ownership in a very tax efficient manner. Speak to our experts today about setting up a company pension scheme for Directors.

For example, John, a 50 year old male, with projected profits in his business of €100,000 decides to make a payment from his company to a company pension for his own benefit . This reduces the profit in the business by €100,000, thus reducing the corporation tax bill by €12,500 (12.5% x €100,000). In addition, he has now managed to transfer €100,000 of company wealth to his own private ownership.

If you are looking to make the most of the tax reliefs available for pension & retirement planning, Guardian Wealth can help. We have the skills and the team to provide expert retirement and pension planning advice. We can formulate a financial plan for you that achieves your personal and financial goals, and most importantly we can explain it to you in a clear and easy to understand manner.

We want to take the mystery out of retirement planning and give you a very clear understanding of what you need to do to make sure you achieve financial freedom in retirement.

How can we help you?

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Pension Tax Reliefs