MW — MoneyWhizz
Ireland Pension PlannerTax Relief & Growth Calculator
Estimate your pension tax relief and long-term fund growth — updated for 2025/2026.
Your details
Tax & relief summary
Your contribution
€5,500
per year
Tax relief value
€2,200
at 40% band
Net cost to you
€3,300
after tax relief
Your tax rate
40%
marginal rate
Gross annual contribution
€5,500
Tax relief saving
−€2,200
Net monthly cost
€275/mo
Max tax-relieved contribution
€11,000
Revenue income cap
€115,000
Standard rate threshold
€42,000
Projected fund at retirement (age 65)
Growth inside a pension is completely tax-free — no CGT, no DIRT, no dividend tax until drawdown.
Projected fund at 65
—
tax-free growth included
Your total contributions
—
over remaining years
Employer total contributions
—
over remaining years
Your contributions
Employer
Tax-free growth
Growth scenarios at age 65
Conservative (3%)—
Moderate (5%)—
Growth (7%)—
What is pension tax relief? ▼
When you contribute to a pension, the government refunds the income tax you paid on that money. At 40% tax, a €1,000 contribution only costs you €600 — the state effectively contributes €400.
Relief is given at your marginal (highest) rate — either 20% or 40% depending on your income.
The 20% vs 40% tax bands ▼
- 20% standard rate: Income up to ~€42,000 (single person, 2024/25)
- 40% higher rate: Income above €42,000
- At 40%: every €100 into pension costs you €60 net
- At 20%: every €100 into pension costs you €80 net
Higher earners get more valuable relief — but everyone benefits from pension contributions.
The €115,000 earnings cap ▼
Revenue limits tax relief to contributions based on a maximum income of €115,000. Even if you earn more, €115,000 is the ceiling.
Example: age 45 (25% limit), earning €150,000 — max relieved contribution is 25% × €115,000 = €28,750.
Example: age 45 (25% limit), earning €150,000 — max relieved contribution is 25% × €115,000 = €28,750.
Tax-free growth inside a pension ▼
Pension investments grow free of:
- Capital Gains Tax (CGT)
- DIRT on interest
- Tax on dividends
This “gross roll-up” dramatically accelerates long-term wealth building compared to savings outside a pension.
At retirement: 25% of your fund (up to €200,000) is tax-free. The rest is taxed as income on drawdown.
When can I access my pension? ▼
- Normal retirement: Age 65, or from 60 in some schemes
- Early access: From age 50 in some occupational schemes
- State pension: Currently from age 66
- Auto-enrolment (2025): Same broad rules apply
What happens at retirement? ▼
Options for your fund:
- Tax-free lump sum: 25%, up to €200,000 (next €300k at 20%)
- ARF: Invest remaining fund, draw down as needed
- Annuity: Guaranteed income for life
- Taxable cash: Full fund as cash, taxed as income
Drawdown income is taxed as regular income — USC may also apply depending on age and amount.
Revenue age-linked contribution limits
Revenue sets the maximum % of earnings qualifying for tax relief by age. Contributions above this get no relief (but can still be made to your pension).
| Age range | Max % | Max contrib (€115k cap) | Relief at 40% |
|---|---|---|---|
| Under 30 | 15% | €17,250 | €6,900 |
| 30 – 39 | 20% | €23,000 | €9,200 |
| 40 – 49 | 25% | €28,750 | €11,500 |
| 50 – 54 | 30% | €34,500 | €13,800 |
| 55 – 59 | 35% | €40,250 | €16,100 |
| 60 and over | 40% | €46,000 | €18,400 |
Your current age row is highlighted. These limits apply to personal contributions only. Employer contributions are treated separately.
Auto-enrolment rates (from 2025)
Most employees without a workplace pension are now enrolled automatically. Rates ramp up over 10 years:
Years 1–3 (employee + employer)1.5% + 1.5%
State top-up, years 1–30.5%
Years 4–6 (employee + employer)3% + 3%
State top-up, years 4–61%
Years 7–9 (employee + employer)4.5% + 4.5%
State top-up, years 7–91.5%
Year 10+ full rate6% + 6% + 2%
Auto-enrolment applies to employees aged 23–60 earning over €20,000. You can opt out after 6 months but are re-enrolled after 2 years.
This expanded calculator allows users to gain an idea of how pension drawdown and State Pensions are calculated. Due to the complexity of the variables, this calculator should be viewed from a laptop or tablet (not a mobile device).
MW — MoneyWhizz
Ireland Pension PlannerTax Relief & Growth Calculator
Estimate your pension tax relief and long-term fund growth — updated for 2025/2026.
Your details
Tax & relief summary
Your contribution
€5,500
per year
Tax relief value
€2,200
at 40% band
Net cost to you
€3,300
after tax relief
Your tax rate
40%
marginal rate
Gross annual contribution€5,500
Tax relief saving−€2,200
Net monthly cost€275/mo
Max tax-relieved contribution€11,000
Revenue income cap€115,000
Standard rate threshold€42,000
Projected fund at retirement (age 65)
Growth inside a pension is completely tax-free in Ireland — no CGT, no DIRT, no dividend tax until drawdown.
Projected fund at 65
—
tax-free growth included
Your total contributions
—
over remaining years
Employer contributions
—
over remaining years
Your contributions
Employer
Tax-free growth
Growth scenarios at age 65
Conservative (3%)—
Moderate (5%)—
Growth (7%)—
State pension (contributory) estimator
Based on the new Total Contributions Approach (TCA) in force from January 2025. You need 2,080 PRSI contributions (40 years) for the full pension.
Your projected PRSI contributions at retirement
0520 (min)1,0402,080 (max)
€0
Estimated weekly state pension
€0 per year • from age 66
Contributions to date520
Projected future contributions0
Home caring periods (capped at 1,040)0
Total TCA contributions520
Maximum required2,080
Max weekly pension (2026)€299.30
TCA phase-in: From 2025, the Yearly Average method is being phased out over 10 years. By 2034, all pensions will use TCA only. This estimator uses TCA. Home caring periods count up to a maximum of 1,040 weeks (20 years).
ARF drawdown modeller
An Approved Retirement Fund (ARF) lets you invest your pension and draw an income. See how long your fund lasts at different withdrawal rates, and how investment growth helps it last longer.
Age 95+
Estimated age fund is depleted
Monthly income
€1,500
from ARF
Withdrawal rate
6%
of fund per year
Fund balance
Total withdrawn
Imputed distribution: Revenue requires a minimum annual withdrawal from your ARF — 4% if under 70, 5% from age 70. Withdrawals are taxed as income. State pension income can supplement your ARF drawdown.
Tax-free lump sum: At retirement you can take 25% of your fund (up to €200,000) tax-free before transferring the balance to an ARF. The next €300,000 is taxed at 20%.
What is pension tax relief?▼
When you contribute to a pension, the government refunds the income tax you paid on that money. At 40% tax, a €1,000 contribution only costs you €600 — the state effectively contributes €400.
Relief is given at your marginal rate — either 20% or 40% depending on your income.
The 20% vs 40% tax bands▼
- 20% standard rate: Income up to ~€42,000 (single, 2024/25)
- 40% higher rate: Income above €42,000
- At 40%: every €100 into pension costs you €60 net
- At 20%: every €100 into pension costs you €80 net
Higher earners get more valuable relief — but everyone benefits from contributing.
The €115,000 earnings cap▼
Revenue limits tax relief to contributions based on a maximum income of €115,000. Even if you earn more, €115,000 is the ceiling.
Example: age 45 (25% limit), earning €150,000 — max relieved contribution is 25% × €115,000 = €28,750.
Example: age 45 (25% limit), earning €150,000 — max relieved contribution is 25% × €115,000 = €28,750.
Tax-free growth inside a pension▼
Pension investments grow free of CGT, DIRT on interest, and dividend tax.
This “gross roll-up” dramatically accelerates long-term wealth building compared to savings outside a pension.
At retirement: 25% of your fund (up to €200,000) is tax-free. The rest is taxed as income on drawdown.The State Pension & TCA explained▼
From January 2025, state pension rates are calculated using the Total Contributions Approach (TCA). You need 2,080 PRSI contributions (52 per year × 40 years) for the full pension of €299.30/week (2026).
- Minimum 520 contributions (10 years) to qualify at all
- Home caring periods count — up to 1,040 weeks (20 years)
- Pro-rata pension for those between 520 and 2,080 contributions
- The Yearly Average method is being phased out by 2034
You can defer claiming from age 66 up to age 70 for a higher weekly rate.
What is an ARF?▼
An Approved Retirement Fund (ARF) lets you keep your pension invested after retirement and draw an income as needed. Key rules:
- Revenue requires a minimum withdrawal of 4% per year (5% from age 70)
- Withdrawals are taxed as regular income
- You can pass unused ARF funds to your estate
- Growth within the ARF continues tax-free
An ARF gives flexibility but requires discipline — withdrawing too much too early can deplete the fund.
When can I access my pension?▼
- Normal retirement: Age 65, or from 60 in some schemes
- Early access: From age 50 in some occupational schemes
- State pension: From age 66 (deferrable to 70)
- Auto-enrolment (2025): Same broad rules apply
Revenue age-linked contribution limits
Revenue sets the maximum % of earnings qualifying for tax relief by age. Contributions above this get no relief.
| Age range | Max % | Max contrib (€115k cap) | Relief at 40% |
|---|---|---|---|
| Under 30 | 15% | €17,250 | €6,900 |
| 30 – 39 | 20% | €23,000 | €9,200 |
| 40 – 49 | 25% | €28,750 | €11,500 |
| 50 – 54 | 30% | €34,500 | €13,800 |
| 55 – 59 | 35% | €40,250 | €16,100 |
| 60 and over | 40% | €46,000 | €18,400 |
Your current age row is highlighted. Employer contributions are treated separately and do not count against your personal limit.
Auto-enrolment rates (from 2025)
Years 1–3 (employee + employer)1.5% + 1.5%
State top-up, years 1–30.5%
Years 4–6 (employee + employer)3% + 3%
State top-up, years 4–61%
Years 7–9 (employee + employer)4.5% + 4.5%
State top-up, years 7–91.5%
Year 10+ full rate6% + 6% + 2%
Auto-enrolment applies to employees aged 23–60 earning over €20,000. You can opt out after 6 months but are re-enrolled after 2 years.
