Ireland Pension Planning 2025 — Revenue Limits & Tax Relief by Age
Ireland's Revenue rules allow age-based pension contributions with 40% tax relief—making pensions one of the most tax-efficient retirement vehicles.
Age-Based Contribution Limits
| Age | % of Income | Max Contribution |
|---|---|---|
| Under 30 | 15% | €60,000 |
| 30–39 | 20% | €60,000 |
| 40–49 | 25% | €60,000 |
| 50–54 | 30% | €60,000 |
| 55–59 | 35% | €60,000 |
| 60+ | 40% | €60,000 |
Note: Absolute maximum annual contribution is €60,000 regardless of percentage.
Tax Relief Mechanism
You receive 40% tax relief on pension contributions:
- Basic rate (20% earner): Contribution is deducted pre-tax; an additional 20% relief is claimed via annual tax return
- Higher rate (40% earner): Full 40% relief is available
Example: Contribute €2,000
- Basic rate worker: Costs €1,200 after tax relief (€200 immediate + €800 via return)
- Higher rate worker: Costs €1,200 (€400 relief immediate + €400 via return)
Pension Types
- Occupational Pension (DB/DC): Employer-provided
- Personal Retirement Savings Account (PRSA): Individual product with tax relief
- AVC (Additional Voluntary Contribution): Supplement to occupational pension
Strategic Planning
✓ Contribute to age limit (€2,000+ monthly for age 40+) ✓ Claim full 40% tax relief via tax return ✓ Plan catch-up contributions in high-income years ✓ Consider PRSA if self-employed
Conclusion
Irish pension rules are generous; 40% relief + high contribution limits allow substantial tax-advantaged retirement savings.