The maximum depends on your age: Under 30 = 15%, 30–39 = 20%, 40–49 = 25%, 50–54 = 30%, 55–59 = 35%, 60+ = 40% of your earnings. The earnings cap is €115,000 per year, so the absolute maximum annual contribution is €46,000 (for those aged 60+ earning €115,000+).

Contributions are made from your gross pay, giving you immediate tax relief at your marginal rate (20% or 40%). The pension fund grows tax-free, and you pay income tax on withdrawals in retirement. This means you save tax now and pay tax later, potentially at a lower rate.

The earnings cap is €115,000 per year for pension contribution purposes. Even if you earn more than €115,000, your contribution limit is calculated only on the first €115,000 of your earnings. This limits the maximum annual contribution for anyone under 30 to €17,250.

No, pension contribution limits are annual and cannot be carried forward to future years. However, if you don't use your full allowance in one year, you can increase contributions in subsequent years within that year's limits.

Excess contributions over your age-related limit will not receive tax relief. You would effectively be contributing from your post-tax income. Revenue may also impose penalties on excess contributions that exceed the Standard Fund Threshold.

If you're a higher-rate (40%) taxpayer, every €1,000 you contribute to your pension saves you €400 in income tax. At the standard rate (20%), you save €200 per €1,000 contributed. The contribution is made before tax is deducted.

The Standard Fund Threshold is €2 million (2025). If your total pension fund at retirement exceeds this threshold, you may face a significant tax charge on the excess. High earners should monitor their cumulative fund value.

Yes, you can contribute to both, but the total combined contributions cannot exceed your age-related percentage limit of your earnings (capped at €115,000). The limits apply across all pension arrangements.

Additional Voluntary Contributions (AVCs) allow you to top up your occupational pension scheme contributions beyond the standard employee rate. AVCs receive the same tax relief as regular contributions and are subject to the same overall age-related limits.

Pension contributions are deducted from your gross pay before tax is calculated, so they reduce your taxable income. This doesn't directly affect your tax credits, but it may reduce the amount of tax you pay at the higher 40% rate.

If you're not working, you can contribute to a personal pension or PRSA up to €1,525 per year (or 100% of your relevant earnings if higher) and still receive tax relief. The minimum contribution threshold for non-earners is quite limited.

A Personal Retirement Savings Account (PRSA) is a flexible pension plan available to anyone, including employees whose employer doesn't offer an occupational pension scheme. PRSAs offer the same tax relief as occupational pensions and can move with you between jobs.