Does the Tax Deadline still matter for Pensions?
With Liam O’Riordan of Investwise Financial Planning
For many people in Ireland, the 31st of October looms each year as the critical self-assessment tax deadline. Whether you’re a PAYE worker with additional income or self-employed, it’s the date by which you must file your tax return and pay any balance owed. But while most associate this date purely with taxes, it’s also very relevant for pensions, and understanding why can make a real difference to both your retirement savings and your tax bill.
In this article, we’ll explore how the 31st October tax deadline interacts with pensions, what opportunities it provides, and why acting before the deadline could leave you in a better financial position.
There is an extension if you pay and file on the Revenue Online Service (ROS). This year, the online deadline is Wednesday, November 19 2025.
Why Pensions and Tax Relief are Linked
The Irish pension system is designed not only to help you prepare for retirement but also to encourage you to save by providing generous tax relief on contributions. When you contribute to a pension, the government effectively gives you back some of the money through income tax relief at your marginal rate (20% or 40%).
This is one of the most powerful savings incentives available in Ireland. But to take full advantage, timing matters – and that’s where the 31st of October deadline comes in.
The Link between Pension Contributions and the Tax Deadline
Revenue allows you to make pension contributions and backdate them against your prior tax year, provided you act before the self-assessment deadline. So, if you make a pension contribution before that deadline, you can elect to have it treated as if it were paid in 2024. This reduces your taxable income for 2024 and therefore lowers the tax due on your 2024 return.
Effectively, you get a “second chance” to reduce your prior year’s tax bill — something no other tax-saving mechanism really allows.
Who can Benefit?
For sole traders and professionals filing under self-assessment, this is a particularly valuable planning tool. You can see your preliminary tax liability for the prior year and then decide whether to make a pension contribution to cut that liability before finalising your return.
However, also if you are a proprietary director or an employee within an occupational pension scheme, you may also be able to make additional contributions before the deadline and backdate them.
Contribution Limits to bear in Mind
Tax relief isn’t unlimited — there are rules around how much you can contribute and claim relief on. The two main limits are:
- Age-related percentage limits: You can contribute up to a set percentage of your net relevant earnings, depending on your age. For example:
o Under 30: 15%
o Age 30–39: 20%
o Age 40–49: 25%
o Age 50–54: 30%
o Age 55–59: 35%
o Age 60 and over: 40%
- Earnings cap: Relief is only available on earnings up to €115,000 per annum. So, for instance, a 45-year-old earning €100,000 can contribute up to €25,000 and claim full tax relief.
Why the Deadline matters for Financial Planning
The 31st October deadline (or 19th November for those using ROS to file and pay) isn’t just a compliance date; it’s also a planning opportunity. Because first of all, you don’t have to guess your future income. By October, you know exactly what you earned in the prior tax year, and you can tailor your contribution accordingly.
Your contribution is also really tax efficient, as you can offset your contribution against your highest tax rate, reducing the amount owed or increasing your refund. And of course, each contribution builds your long-term financial independence while also delivering short-term tax savings.
Common Mistakes to Avoid
Now that we are quite close to the deadline date, it’s important not to make any last-minute slips. The ones most frequently encountered include:
- Leaving it too late
Pension contributions must be received by the provider before the deadline. Waiting until the final day risks missing out if there are administrative delays.
- Exceeding contribution limits
Always check your age-related and income-related caps to ensure you’re eligible for full relief.
- Forgetting to elect backdating
Simply making the contribution isn’t enough – you must notify Revenue on your tax return that you want it treated as a prior-year contribution.
So yes, the 31st October (or 19th November) tax deadline is highly relevant for pensions in Ireland. It’s not just about paying tax; it’s about reducing tax. By making smart contributions before the deadline, you can both lower your tax bill for the prior year and strengthen your retirement fund for the future.
As always, the best approach is to plan ahead. Speak with us well in advance of the deadline to ensure contributions are made on time, within limits, and properly recorded with Revenue. That way, you’ll not only meet your obligations but also give yourself the best chance of retiring with a stronger pension pot.
To get started on your financial planning journey, contact Liam on 087 635 6777 or at liam@investwise.ie
