Pension contribution limits are set by age in order to reflect the number of years left in a person’s working life and to give them the best opportunity to reach a healthy pension pot amount.
At the age of 30, for example, there is a limit of 15% of total pay that can be put into a pension. This then rises by groups of years until you reach the age of 60+ when the percentage value of salary that you can put into your pension is at its peak, this is currently 40%.
The chart below outlines each of the age limits and their corresponding salary percentage limits.
Note: These are personal contribution limits, your employer contributions separate. So if you are 35 and you earn €50,000 per year, you can contribute 20% personally, i.e. €10,000. Your employer may match a certain % of your contribution on top of this.
The amount your employer can contribute is based on your age and which pension product you are using. For example, business owners using PRSAs typically have no company contribution limit. Making them highly tax-efficient ways of withdrawing cash from your business.