The amount of tax you can save by contributing to a pension depends on your age and the maximum allowable contribution. Here’s a breakdown of the potential tax relief:
Age | Maximum Contribution | Tax Relief at 40% | Tax Relief at 20% |
Up to 30 | €17,250 | €6,900 | €3,450 |
30 – 39 | €23,000 | €9,200 | €4,600 |
40 – 49 | €28,750 | €11,500 | €5,750 |
50 – 54 | €34,500 | €13,800 | €6,900 |
55 – 59 | €40,250 | €16,100 | €8,050 |
60 and over | €46,000 | €18,400 | €9,200 |
The tax relief depends on your contribution and tax rate. For example, if you’re under 30 and contribute the maximum amount of €17,250, you could save up to €6,900 in tax at the 40% tax rate.
