To encourage you to save into a pension, the Government offers generous tax advantages:

• The payments you make benefit from tax relief at your highest rate as they are deducted from your salary before tax is calculated. PRSI and USC relief are not available.
  
• Your savings are allowed to grow in a tax-efficient way.
  
• If you die before you start taking your pension, it can be paid as a tax-free lump sum to your family or someone else you choose. There are limits on the amount that can be paid - speak to your scheme trustees to find out the limits that apply to you.

Age	Amount which qualifies for tax relief #
Under 30 years	15% of net relevant earnings
30 to 39 years	20% of net relevant earnings
40 to 49 years	25% of net relevant earnings
50 to 54 years	30% of net relevant earnings
55 to 59 years	35% of net relevant earnings
60 and over	40% of net relevant earnings

# For Personal Pensions, relevant earnings are earnings from trades, professions and non-pensionable offices and employments. For Executive Pensions and PRSA AVCs, relevant earnings are earnings from offices and employments. Net relevant earnings are relevant earnings less capital allowances, losses and charges. Subject to maximum earnings of €115,000 p.a. under current legislation.

The 30% limit applies, regardless of age, to Personal Pensions for certain categories of person that typically retire earlier than usual, such as athletes, jockeys, etc.