A Pension scheme or as often referred to as a retirement plan, is a way of saving money specifically for your retirement. What makes it different from an ordinary savings plan is that Revenue will assist in the form of tax relief, for which in turn, access to your savings will be restricted.
This restriction takes the form of access to your money, which becomes available when you reach the minimum retirement age.
The maximum pension contributions, in any one year, for which you are entitled to tax relief, is related to your age and is expressed as a percentage of your gross income. The percentage relief limits are:
|Up to 30||15|
|30 to 39||20|
|40 to 49||25|
|50 to 54||30|
|55 to 59||35|
|60 and over||40|
This 40% limit also applies to a sportsman or sportswoman. The overall annual earnings limit for pension contributions is €115,000.
Standard fund threshold (SFT)
The SFT is the generally applicable maximum tax-relieved pension fund for an individual and is set at €2m from 1 January 2014 (the “specified date”).
From 7 December 2010 to 31 December 2013 the SFT was €2.3m
The Standard Fund threshold (SFT) has been €2m since 1 January 2014. Individuals with pension rights whose capital
value as at 1 January 2014 exceeds €2m can claim a Personal Fund Threshold (PFT), up to an amount not
exceeding the previous SFT of €2.3m, from Revenue.
For more on Pensions see Revenue website
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