Unbelievable as it may seem, it is possible to claim tax back by starting a pension now, doing an AVC or topping up your existing pension, and right now is the time to do it.
As part of the government’s strategy to increase personal pension pots and relieve the burden on the State, any contribution into your pension fund by 31 October 2016 is eligible for tax back on the 2015 tax year.
So how does it work?
You decide to make a contribution of €1000 by 31 October 2016. Your income tax rate is 40%.
The €1000 is invested in your pension fund until you retire.
You are then eligible to claim back at your tax rate of 40%, meaning you get back €400 in cash.
Essentially, it only cost you €600 to top up your pension by €1000.
It is important to note that every individual’s situation will differ and you should seek advice to learn whether you are eligible to claim.
Why not give a Hennelly Finance advisor a call now on 091 670 123 to find out how your pension pot can benefit from a contribution? Remember, it must be made by 31 October 2016 so don’t delay!