With just a couple of months to go until the 2024 income tax filing deadline, now is the time to be thinking about an AVC (Additional Voluntary Contribution) to your pension. I know ‘pension’ is a word that gives people anxiety, but think of it as simply a savings pot for later in life.
You can make a pension contribution in 2025 that reduces your 2024 tax bill while boosting your retirement savings (yes, you can claim it against your 2024 taxes, even though it’s paid in 2025). That means less taxes paid, more money refunded, and a bigger pension pot for your future.
The key dates for 2025 are:
31 October – standard income tax filing deadline
19 November – extended deadline if you file and pay online through Revenue Online Service (ROS)
By now, you could already have your income tax return with your accountant, know your liability, and know your maximum pension contribution for relief. The next question is how to reduce that liability. One option is to pay it into your pension so instead of money going out the door never to be seen again, it’s working for your future.
Why think about it now?
Many people only start thinking about AVCs in November. Planning ahead now means no last-minute stress, more time to calculate how much you can contribute, easier cash flow management, and peace of mind that you are making the most of available tax relief.
Save tax in action
If you paid tax at the 40% rate in 2024, a €1,000 AVC paid in 2025 could cost you only €600. Revenue will credit you up to €400, while your full €1,000 goes straight into your pension pot to grow tax free.
How much can you contribute?
Revenue sets age related limits on the percentage of your earnings you can contribute to a pension and still claim tax relief. These limits apply to the total of all your contributions, including both your regular pension payments and AVCs.
Revenue pension contribution limits by age
The earnings cap for pension contributions eligible for tax relief is €115,000. This cap applies to the aggregate of all earnings (e.g., employment income and self-employed income) and is used to calculate the maximum allowable contribution for tax relief purposes.
| Age | Maximum % of Earnings Eligible for Tax Relief |
|---|---|
| Under 30 | 15% |
| 30 – 39 | 20% |
| 40 – 49 | 25% |
| 50 – 54 | 30% |
| 55 – 59 | 35% |
| 60 and over | 40% |
Final thought
With the income tax deadlines approaching, now is the time to plan it. By making an AVC contribution in 2025 you can save tax on your 2024 income tax, secure a refund from Revenue, and grow your pension pot for the future all at the same time.
If you want to chat through your tax return or pension options, just reach out, whether by contact form or a consult request, I’ll get back to you.
-Lisa
Lisa Lokasto 
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