Self-employed people in Ireland should consider making a pension contribution before the tax deadline 31^st of October / 14^th of November for several reasons:

1. Tax Relief

• If you are Self-Employed, you must calculate your tax liability and make a payment by 31^st October 2024 (or 14^th November 2024 for ROS users) in respect of your:

– Final Tax Assessment for 2023

– Preliminary Tax for 2024

• You can reduce your 2023 Final Tax Liability and your 2024 Preliminary Tax Liability by making contributions to a Personal Pension Plan or PRSA and electing to back date the relief to 2023.

2. Compounding Growth

• Long-Term Savings: The earlier you start contributing to a pension, the more time your investments have to grow. Contributions made now benefit from compounding returns over the years, potentially leading to a more substantial pension fund upon retirement.
• Tax-Free Growth: Funds invested in a pension grow tax-free, meaning you won’t pay tax on any investment gains within the pension fund.

3. Flexibility in Retirement

• Financial Security: Building a pension ensures you have a source of income in retirement. Relying solely on the State Pension may not provide enough financial security, so personal contributions are essential for maintaining your standard of living in retirement. Depending on what class of PRSI you are taxed at you may not be entitled to the state pension so worth checking this with your accountant.
• Options at Retirement: With a personal pension / PRSA, you have flexibility in how you access your funds at retirement, including taking a tax-free lump sum of 25% and investing the balance in an ARF or purchasing an annuity.

4. Maximizing Contributions

• Age-Related Limits: As you get older, the percentage of your income that you can contribute to a pension and claim tax relief on increases. Making contributions before the deadline ensures you’re taking full advantage of this allowance. **Subject to an earnings cap of €115,000 per annum).

5. Planning for the Future

• Retirement Planning: Making regular pension contributions helps you stay on track with your retirement goals. By contributing before the tax deadline, you ensure that you’re making consistent progress towards your financial future.

In summary, making a pension contribution before the tax deadline in Ireland allows self-employed individuals to reduce their current tax liability, take advantage of compounding investment growth, and ensure they are financially prepared for retirement.

If you would like to make a Pension Contribution to reduce your Tax Bill, contact BARRY-JOHN RYAN FINANCIAL PLANNING Today or before the 31^st of October.

Phone – 022-42466

Email – gavin@bjrfinancial.ie , barryjohn@bjrfinancial.ie

Website – www.bjrfinancial.ie

Bells Cross Capital Limited trading as BARRY-JOHN RYAN FINANCIAL PLANNING is registered in the Republic of Ireland, registration number 656922 at 19,West End, Mallow, Co. Cork, P51 KX77.Director: Barry-John Ryan. Bells Cross Capital Limited trading as BARRY-JOHN RYAN FINANCIAL PLANNING is regulated by the Central Bank of Ireland.

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