Pension Calculator

This calculator allows you to estimate the contributions you should be paying to your pension to provide your Target Pension help in retirement.

 
  1. You may be entitled to a state social welfare pension in retirement. The current state social welfare pension is €11,976 per year (or €230.30 per week) as of January 2012.

    Your age today will determine what age you are eligible to receive the statesocial welfare pension.

    The state social welfare pension is payable from the following ages:
    Age 66 from 2014
    Age 67 from 2021
    Age 68 from 2028

    18 70
  2. 50 70
  3. 0% 66%
    € per annum
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The calculator assumes that your retirement fund pays an annual management charge of 1% per annum. In addition, a 5% contribution charge is assumed to be paid on each regular contribution (based on Standard PRSA fees and charges maximum limits). You should contact your pension provider to confirm what charges you are actually paying as these can have a significant effect on your retirement fund which determines your retirement income. Please refer to the fees and charges section of our website for further detail.

Your annual gross salary is your current annual salary before any tax or other deductions.

Revenue allows individuals to retire from age 50. There are exceptions to this rule for certain professions and individuals which you may wish to discuss with your pension provider or employer.

Your age today will determine by what age you are eligible to receive the State Pension.

The State Pension is payable from the following ages:

  • Age 66 from 2014
  • Age 67 from 2021
  • Age 68 from 2028

Revenue currently allows individuals to take a lump sum from their pension on retirement subject to Revenue limits. This lump sum will be funded by reducing your annual pension in retirement.

This is the percentage of pre-retirement salary you are targeting as a pension in retirement

Your Target Pension is the pension in current day money terms which you would like to receive in retirement. This calculator includes the State Pension as part of the Target Pension payable from the state retirement age. The current State Pension is €12,131.60 per year (or €233.30 per week) as of January 2016.

Are you currently making regular contributions to a pension fund, either privately or through an occupational pension plan? If so, please input your current fund value and monthly contributions which can be found in your benefit statement.

The percentage of your gross salary which you are currently paying into your pension fund

Tax relief calculations take account of age related limits on tax relief in any given year as prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. The maximum tax relief as a % of earnings are as follows:

  • Under 30: 15%
  • 30 to 39: 20%
  • 40 to 49: 25%
  • 50 to 54: 30%
  • 55 to 59: 35%
  • 60 and over: 40%

Revenue have set a limit for determining maximum net relevant earnings for pension purposes at €115,000 for 2016. Contributions made in excess of these limits may not receive tax relief.

If you currently have a pension fund, please enter the value of that pension fund in the field shown

This is the percentage of your gross salary (if any) which your employer is currently paying into your pension fund.

Projected value of existing fund at age

Projected accumulated employer contributions

Projected accumulated employee contributions

Projected accumulated government tax relief savings

Total Projected Pension Fund Value

This projected pension fund could be used to provide an estimated annual pension of

 
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About the Pension’s Calculator

  • This pension’s calculator is designed to give a broad indication of the level of contributions required to give your desired pension at your retirement age. This calculator only provides a sample indication of the funding contributions for your pension and no reliance should be placed on it.
  • This calculator does not take into account any contributions an employer might make to your pension.
  • Do you know that contributions paid to a pension scheme will benefit from income tax relief at your highest rate of income tax? This calculator takes into account current income tax relief benefits.
  • For a full and accurate assessment of your personal finances and any tax relief you may be entitled to on your pension contributions always consult with a professional financial adviser

The next step is to talk to your employer, trade union, bank, insurance company, building society or financial advisor about starting your pension today.

Pension Calculator Notes:
  1. Assumptions used: Investment return will be 5% per year before retirement and 4% per year after retirement. Salary will increase at 3% per year. Pension will increase at 2% per year in retirement. The State Pension will increase in line with salary increases. Spouse's annuity assumes a 3 year age gap between the Main Life and Spouse. Your personal illustration above makes an approximate allowance for the recently introduced Pensions Levy (i.e. 0.6% of your Fund Value) until 2014 or your intended retirement year if earlier.
  2. Contribution amounts shown will increase each year as salary increases.
  3. The actual pension at retirement will depend on actual investment return and salary inflation up to retirement and on the cost of purchasing annuities at retirement.
  4. Tax relief calculations take account of age related limits on tax relief in any given year as prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. The maximum tax relief as a % of earnings are as follows:
         Under 30: 15%
         30 to 39: 20%
         40 to 49: 25%
         50 to 54: 30%
         55 to 59: 35%
         60 and over: 40%
  5. Contributions or benefits may exceed limits prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. Budget 2011, introduced a Standard Fund Threshold (SFT) of €2.3 million. Individuals with pension funds in excess of this value as at 7 December 2010 may apply for a Personal Fund Threshold(PFT). When the capital value of pension benefits drawn down by an individual exceed his or her SFT or PFT as appropriate, a tax charge of 41% is applied to the excess fund.
  6. In these net contribution calculations, PAYE & single persons tax reliefs and single persons tax bands are assumed. It is also assumed that no other tax reliefs apply.
  7. The annuity rate used to convert your pension fund at retirement age is a long term average annuity rate, which makes no allowance for the recent gender equalisation ruling. The annuity rate used in your personal illustration above will be shown when you run the calculator.
  8. This calculator takes account of the fact that the State Pension (Transition) will no longer be paid from 1 January 2014. This means that there will then be a standard State Pension age of 66 years for everyone. If you have qualified for the State Pension Transition before 1 January 2014 you remain entitled to it for the duration of your claim (1 year). State pension age will increase to 67 in 2021 and to 68 in 2028