How much do I need in retirement?
Your pension may be your main income source once you retire so you should plan based on how you want to live once you have retired.
You can use our pension calculator to illustrate how much income you may get in retirement from your pension savings.
Having your own pension plan is important as the maximum single Contributory State Pension is currently €12,956.60 a year*.
You must also meet all the requirements to be eligible to receive the State pension. The State pension alone may not be enough to fund your lifestyle in retirement.
*As at March 2019.
What tax relief is available on my contributions?
There are no limits to contributions you can make to your KBC Lifestyle PRSA, however there is a cap on the amount of tax relief that can be claimed. These are prescribed in accordance with legislation.
You may claim tax relief on a percentage of your salary (up to an earnings cap of €115,000 per year), determined by your age at the end of the relevant tax year (see table below).
Age in tax year Tax Relief Limit of Net Relevant Earnings
||% of Earnings
|30 - 39
|60 and over
You can claim tax relief on your contributions at your marginal rate of income tax (either 20% or 40%). There is no PRSI or USC relief.
For example, a 42 year old earning €50,000 a year may claim income tax relief on contributions of up to 25% of their salary - €12,500. This individual may claim tax relief at 40% (their prevailing income tax rate) on this €12,500 contribution i.e. €5,000, reducing the cost of the contribution to €7,500.
You are entitled to tax relief on a PRSA contribution of up to €1,525 per annum even if exceeds the normal age-related and income based limits. These limits include any contributions you are making to other pension arrangements. Tax relief is not automatically granted and Revenue requirements must be met. Tax relief is not calculated at source, but may be claimed from Revenue.
What funds can I invest in?
The KBC Lifestyle PRSA invests your retirement savings in what we call 'MyAutoinvest'.
This is an investment strategy that automatically reduces your exposure to risk as you approach retirement. This is called de-risking, and is designed to cater for the needs of pension savers of all ages. When your retirement is far away, more of your money will be invested in equities, as equity funds have the potential to achieve greater growth over the long term. As you move closer to retirement, MyAutoinvest will gradually move more of your fund to lower risk assets like bonds and cash.
The MyAutoinvest strategy consists of a balance of equity, bond and cash funds. Each month, we do two things for you: 1. We automatically move some of your savings from equities to bonds. In the last 5 years before you retire, we will move money into our cash funds too. 2. We rebalance your investment allocation to ensure that your policy is in line with the target asset allocation for your term to retirement.