Personal Pensions are organised individually by self employed people or employed people who are not part of an occupational pension scheme. A personal pension allows you to take control of and prepare for your retirement. Having a personal pension plan has tax advantages. The Revenue Commissioners will allow you to claim income tax relief against every euro you invest for your retirement.
Tax relief on contributions
The tax relief on contributions is more generous as you get older, as demonstrated in table below:
| Age | Amount which qualifies for tax relief |
|---|---|
| Under 30 years | 15 % of net relevant earnings |
| 30 to 39 years | 20 % |
| 40 to 49 years | 25 % |
| 50 to 54 | 30 % |
| 55 to 59 | 35 % |
| 60 and over | 40 % |
SIPPS (Self Invested Personal Pension Schemes)
SIPPS offers an individual control of their pension plan, thus providing an alternative to conventional personal pensions