How?
A pension plan comes with generous tax relief, and 18th November 2026 is the deadline to maximise the tax relief available on pension contributions for 2025 income tax year.
Income taxpayers can claim full tax relief at their marginal rate on the contributions they make to their pension plan. For a 40% taxpayer this means that every €1,000 you contribute to your pension actually costs just €600 after taking tax relief into account - for a 20% taxpayer the real cost is just €800.
For the purposes of income tax relief, contributions made to a pension plan are subject to the following limits.
Age |
% of Annual Income |
| Under 30 | 15% |
| 30 - 39 | 20% |
| 40 – 49 | 25% |
| 50 – 54 | 30% |
| 55 – 59 | 35% |
| Over 60 | 40% |
Tax relief on contributions are subject to maximum contributions based on earnings of €115k.
If however, you have not reached your maximum threshold for allowable pension contributions in a year, you can make a top up contribution to cover the difference for the current and the previous tax year. For example, if you have unused relief available in respect of your 2024 tax year, you can make a pension contribution before 18th November 2025 (if you file your return on-line) and you will receive tax relief in the current tax year.
So, if you haven't made the most of the pension tax reliefs open to you, Wednesday 18th November 2026 is the date to remember. In addition to income tax relief on your pension contributions your pension plan grows tax-free and at retirement you can elect to take part of your fund as a tax-free lump sum.
Finally, if you have stopped contributing to your pension plan, it is important that you review the investment strategy regularly.
- By Conor Murray of CMCC Financial Solution Ltd
