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Retirement Planning for clients with multiple incomes

Advising clients about retirement planning when they have multiple incomes can be more complex. There are age-related limits on how much an individual can contribute to a pension, with additional restrictions based on the types of incomes they receive.

Revenue rules set an earnings limit of €115,000 for the purposes of income tax relief for a client that is making contributions to a pension arrangement. Therefore, for those clients with one income from an employment or self-employment, that is in excess of €115,000, they may pension the first €115,000 of that income but that is the overall limit. 

Example – Self Employed client with Net Relevant Earnings of €150,000 in their 40’s. Maximum allowable contribution is €115,000 x 25% = €28,750 

In today's TechTalk we look at various examples of clients with multiple incomes including: 

  • General Practitioner (GP)
  • HSE Consultant
  • Private Sector worker with second employment 

You can also read more from our Techtalk on Tax consequences on death of an ARF or Vested PRSA holder.