We specialise in providing up to date tax relief advice on all pension plans for business owners and individuals.
To encourage people to save for retirement, the Government provides significant income tax relief on many pension plans. If you qualify for relief it can make saving for retirement through a pension plan great value for money, however Income Tax relief is not guaranteed.
There are various rules that pension schemes must meet to get the tax relief and there is a limit to the amount of the relief.
There is a limit to the amount of pension contributions you can get tax relief on in any one year.
There is also a limit to the total value of your pension fund that gets tax relief.
Age | Limit |
|---|---|
Under 30 | 15% |
30–39 | 20% |
40–49 | 25% |
50–54 | 30% |
55–59 | 35% |
60 or over | 40% |
The annual limit is a percentage of your income. The percentage depends on your age.
€115,000 is the maximum income that can be used to calculate the percentage.
For employees, income means gross pay (pay before deductions). If you are self-employed, income means earnings less allowable expenses, also known as net relevant earnings.
If you are a professional sportsperson or in a profession that usually retires at an earlier age than the norm, you can get tax relief on 30% of your net relevant earnings regardless of your age.
If you have more than one source of income, the relief is only on the source of income that contributions are made from.
There is a limit on the overall value of your pension fund that you can get tax relief on. This is called the Standard Fund Threshold. The Standard Fund Threshold is €2 million. (A higher limit may apply if the fund was over €2 million on 1 January 2014, this is called a Personal Fund Threshold (pdf)).
If the fund is greater than the limit, tax at 40% will be charged on the excess when you become entitled to receive it.
Amount of lump sum | Income tax rate |
|---|---|
Up to €200,000 | 0% |
€200,000–€500,000 | 20% |
Over €500,000 | Marginal rate |
When you retire, you can usually take part of your pension fund as a tax-free lump sum. The amount you can take depends on the type of pension plan you have and how much you have taken in tax-free lump sums from other pension plans.
There is a limit of €200,000 on the total amount of tax-free retirement lump sums you can get. Lump sum payments are taxed as follows:
Remember: There may be a limit to how much you can take out of your pension, depending on the type of pension. It is crucial to get advice from a registered broker like ourselves as each case will be different for tax calculations.
See How We’ve Helped Other Solicitors
After so many years working and building up my Pension it was quite daunting when the time came to access my Pension. There were lots of different options available to me and I wanted to make sure I was fully informed. Michael in Guardian Wealth helped me to understand the immediate and long-term implication of the options available to me and guided me through the process. I would have no hesitation recommending Guardian Wealth.
Trying to make a decision between keeping my existing Defined Benefit Scheme or taking a transfer value was not a clear decision for me. I needed to take advice from somebody with experience so was very happy when I reached out to Michael in Guardian Wealth. Once we weighed up the advantages and disadvantages of each option it became clear to me what I needed to do. I would recommend Guardian Wealth to anybody trying to make a similar decision.
I have been receiving advice from Jim Doyle in Guardian Wealth for 3 years. I was advised by a friend to use Guardian Wealth and so I contacted them when the time came to access my pension. Jim has been very good to me and has given me great advice over the years. He keeps in touch to give me updates on my pension and he is always available by phone if I have any questions. I am delighted that I am dealing with Guardian Wealth. They are a professional outfit and very straightforward to deal with.
I contacted Guardian Wealth as I was looking to get advice on how best to transfer my UK Pension back to Ireland. I met with Michael a few days later and he explained the process to me, and we got the documentation completed to enact the transfer. I don’t think it was something that I could have completed myself, so I am more than happy to recommend Guardian Wealth to anybody looking to transfer their UK Pension back to Ireland.
Trying to get my UK Pension transferred to Ireland was a confusing process. I was getting different advice and opinions from different sources. Michael reviewed my circumstances and was able to explain exactly what my options were. He also contacted the UK pension provider to make sure the process went smoothly. I would have no hesitation recommending Guardian Wealth.
Many thanks for all your help in making the transfer so seamless. I have to say I thought you did an excellent job and I am lucky to have landed on your website when I first started looking for someone to help me on this.
I had been researching the possibility of transferring my UK Pension back to Ireland for quite some time. However, it wasn’t clear to me what steps I had to take to get it done. Once I contacted Guardian Wealth Jim was able to explain the process to me, organise the paperwork and deal with my UK Pension provider. I am happy to recommend Guardian Wealth to anybody who needs help with their UK Pension transfer.
Drawing down my Pension was a big financial decision and I was very happy I chose Guardian Wealth. Michael clearly explained my options to me and dealt with my insurance company to make sure it went smoothly. I now meet with Michael every year to make sure my retirement plans are on track. I have no hesitation in recommending Guardian Wealth’
I have experienced the ups and downs of Pension funds over many years. As I got closer to retirement, I needed to get advice regarding the risk profile of my pension funds as I didn’t want to see it fall in value at this stage of my life. Michael was able to provide practical steps to make sure this risk was reduced for me and I am happy that I am on the right road. They are always at the end of a phone & very accommodating to meet at short notice to discuss any queries that we may have. I do recommend Guardian Wealth to anybody worried about their pension.
Like most business owners I put most of my energy into making sure my business is successful. Very often that leaves little time to stop and look at my bigger picture financial position, and plan for the future. I have been working with Michael in Guardian Wealth for a number of years now and it’s great to know that he has a financial plan in place for me, and meets with me regularly to make sure I am on track. I am happy to recommend Guardian Wealth.
Usually, your first contact with us will be a short telephone call or an email with Joanne in client services. This allows us to understand your situation and let you know how we can help you. A quick phone call or email can often be the easiest way to take the stress out of these decisions.
For most of our clients that initial phone call or email is where they start to get clarity on the right steps to get the most from their Pension.
Joanne will quickly get a handle on your situation and you can decide together what tax relief questions you have. She will set up a quick call with Jim or Michael to give you some advice over the phone or on a video call. You can contact Joanne on 01 5267770.
