Top up your pension savings and get up to 40% tax back
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It’s that time of year again, you might hear of people claiming tax back on their pension payments and think – but how? The way you do it is with a top up payment, or an Additional Voluntary Contribution (AVC) which needs to be made by 31 October 2020, if you want to claim tax back for the 2019 tax year. |
Example
Let’s look at an example, say you are in the marginal tax bracket (paying 40% income tax) and want to top up your pension with an AVC of €1,000:
- Pension pot topped up with €1,000
- Claim your tax back €400
- Actual cost to you €600
Entitlement to tax relief is not automatically guaranteed.
What does that mean for you?
In the example here, your pension savings get the full €1,000 top up, which is invested in your pension pot until you retire.
This year, 2020, you get to claim back at your marginal tax rate of 40%. That’s €400 back in your pocket.
Which means it only actually cost you €600 to top up your pension by €1,000.
What are the next steps?
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Complete the top up form and send the payment to us, by cheque or bank transfer. |
You can also submit payment details online. For more information please log in or register here. https://www.pensionplanetinteractive.ie/empower/login
Click in the image below to see all of the steps:
Click on the image below to find out what happens after you complete all the steps:
