How a pension can reduce your tax bill

You may have a few days left to file and pay your tax and might be searching for ways to reduce your tax liability before the November deadline for your individual return, or the December deadline for you company.

One of the ways people reduce their tax liabilities and prepare for their future, is by investing in a pension.

If you invest in a revenue approved pension you can get tax relief of up to 40% on your contribution. The amount you or your company can can claim, depends on your salary, age, earnings and sometimes revenue approval (it can be required for larger contributions).

If you are unsure of the type of pension you want and what the fees could be or what all pension terms mean, a good place to start is with the Pension Authority website it gives you straightforward explanations of the types of pensions, what you could be charged for and what the terminology could imply for your investments.

Some companies can offer you a risk questionnaire, they can be useful as it could give you an idea of the amount of risk you are willing to take. It may be no harm asking your broker for a risk questionnaire before you part with your hard earned money.

Feel free to contact me if you need any help with your tax returns.