The Pensions Authority would like to place cookies on your computer to help us make this website better. To find out more about the cookies, see our Cookie Policy.

I accept cookies from this site You must tick the 'I accept cookies from this site' box to accept.

In order to personalise your content you must select all three options


Tax

One of the significant advantages of pensions when compared with other forms of saving is the tax relief you can get on contributions, investment build-up and some benefits.

You receive income tax relief on your own contributions to a pension arrangement within certain limits and you are generally not taxable on your employer's contributions, if any (effectively this is tax free pay).

Investment returns earned by pension schemes are also exempt from capital gains and dividend income tax and the lump sum you can take at retirement is tax free up to certain limits.

Tax relief on contributions

The amount of tax relief you can get on your own contributions to a pension depends on your age...

Tax relief on employer contributions

Employers get tax relief on any contributions they make to a pension arrangement...

Tax on pension assets

Tax is generally not charged on the investment income or capital gains earned by pension funds...

Tax on pensions and annuities

All pensions (annuities) are taxable as income under the PAYE...

Tax on lump sums at retirement

The first €200,000 of pension lump sums payable is currently (2016) tax free...

Tax on AMRF/ARFs

Any amounts drawn down from an Approved Minimum Retirement Fund (AMRF) or Approved Retirement Fund (ARF) are taxed as income and are also subject to the Universal Social Charge...

Tax on benefits on death

Benefits emerging from a pension fund on the death of a member are assessable on the recipients for the purpose of Capital Acquisitions Tax (CAT) and/or income tax...

Lifetime limit on pension fund

Individuals have a maximum lifetime limit on the amount of their retirement benefits from all sources (except State pensions)...

Personalise now and find out more...

There is more information that you could learn about planning for retirement in relation to your specific situation.

But first you'll have to tell us more about yourself.