Home / Local News / Cummins Financial: Maximize Savings And Minimize Taxes The Power Of Investing In A Pension
Local News
Cummins Financial: Maximize Savings And Minimize Taxes The Power Of Investing In A Pension
One of the most compelling reasons to invest in a pension is the generous tax relief on contributions. When you contribute to a pension scheme, you receive tax relief at your marginal rate. This means that for every €100 you contribute, it may only cost you €80 or even less, depending on your income tax rate. This immediate tax benefit can substantially reduce your overall tax bill.
The money you invest in a pension grows tax-free. This means
that any returns on your investments within the pension fund are not subject to
income tax, capital gains tax, or dividend tax. Over time, this tax-free growth
can significantly boost your retirement savings. This can be achieved by
personally making a lump sum Personal Pension, PRSA or PRSA AVC contribution by
31 October 2023 (or 15 November 2023 for ROS users) and electing to backdate
the tax relief to 2022.
