The government really wants you to save for your retirement.  So they offer three great tax advantages with the money you put into your pension.

Moneycube thinks these are worth shouting about!

Tax relief on contributions

Firstly, you get income tax relief on the money you put in.  If you’re a 40% rate taxpayer, when you put in €60, the taxman adds €40.  (That’s the €40 you’d normally be paying in tax on €100 of earnings).

Your cash grows tax-free

Secondly, the money in your pension pot accumulates tax-free.  There’s no income tax, capital gains tax, deposit interest retention tax or capital gains tax on your money while it works away on your behalf.  That’s a lot of tax to avoid!

Tax-free lump sum belter

Lastly, most people can take a tax-free lump sum of up to 25% of their pension pot when they retire.  That lump sum can be as much as €200,000.  It’s probably the only time in your life you’ll collect anything close to that amount without the taxman having a piece.

By investing €400 a month you could save €27,900 in 5 years

Using our "Picture your money" tool, you can find out how your money could work for you.

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Note: This is an initial indication to help you picture your money. Remember that with investments it is not possible to know for certain what returns you will achieve. Please note the investment warnings at the bottom of the page. This is the approximate before-tax return on an investment which grew at 6% over 5 years.