Personal Pension Plans are used by a broad range of people within the working community. They are for self-employed individuals such as sole traders, partnerships and farmers, so basically business people who are not company directors. They are also used by PAYE employees who are earning an income but are not part of an occupational pension scheme arranged by their employer.
Your age and your net relevant income for that particular year determine how much you can put into your pension and receive tax relief at your higher rate.
Under 30 years old: 15% of Relevant Earnings
30 – 39 years old: 20% of Relevant Earnings
40 – 49 years old: 25% of Relevant Earnings
50 – 54 years old: 30% of Relevant Earnings
55 – 59 years old: 35% of Relevant Earnings
60 years old & over: 40% of Relevant Earnings
There is an earnings cap of €115,000 per annum regardless of age.
As with all pensions, in addition to the tax relief on contributions as outlined above, the funds within the pension grow tax-free throughout it’s life, and on retirement a lump sum can be taken from the fund tax-free, with the balance in most cases distributed as income.
I would like to commend David Kinsella from Kinsella Financial for the outstanding customer service that my associate received from him in purchasing a house.
Ciaran Darcy on Behalf of Mortgage Client - May 2019