Maximum Pension Contribution Calculator.

A pension is a long term savings plan to provide an income when you retire. A pension contribution is money that you alone, or you and your employer, or your employer alone, contribute to a pension scheme to provide you with a pension. There are various kinds of pension contributions.

An occupational pension is provided by an employer in order to make pension provisions for employees. There are two types of occupational pension.

A defined contribution scheme is where your pension income is calculated based on the contributions you have made during your working life. You may pay a proportion of your salary and your employer may also contribute to your pension. 

A defined benefit scheme is based on your final or average salary while in employment and your years of service. Your employer may also contribute to the scheme.

If you wish to make increased contributions to your occupational pension scheme (private or public sector). You can do this by making additional voluntary contributions (AVC) if the pension scheme permits this.

A private pension is a type of pension savings plan that you contribute to in order to provide savings or a pension pot for your retirement. 

A personal retirement savings account (PRSA) is an investment account that you alone or you and your employer or your employer alone may contribute to in order to generate a retirement income. 

Standard PRSAs have capped charges and limited investment funds while non-standard PRSAs do not have capped charges and have a wider range of investment funds.

A personal pension plan (PPP), also known as a retirement annuity contract (RAC), is a type of insurance product taken out by those who are self employed or who do not have access to an occupational pension scheme. 

The insurance company will invest your contributions in order to provide you with an income on your retirement and will charge you for providing the pension.

A pan European personal pension product (PEPP) is a type of personal pension scheme which may be contributed to by you and your employer.

This type of pension arrangement is portable as you can accrue retirement benefits when residing in any EU member state. 

The maximum pension contributions are the maximum contributions that can benefit from tax relief at your marginal rate of income tax. 

There is both an age and income percentage related maximum and an overall total earnings limit.

The age related earnings percentage limit sets out the maximum pension contributions that you can make that are eligible for income tax relief.

Where you have more than one source of income, only the income from which the pension contributions are made is eligible for this relief.

You can avail of income tax relief on pension contributions on earnings below €115,000 per year.

This total does not include employer contributions to your pension.

Pensions can be complex and confusing and it is difficult to know how best to save for your retirement.

If you wish to maximise the tax relief you can avail of while saving for retirement, use our maximum pension contribution calculator.

Alternatively, you can contact us and discuss your pension today. Get expert advice and assistance from our experienced and independent pension advisors for your retirement planning.