What are contributions to pension plans?

Pension plan unit holders can make two types of contributions: regular contributions throughout the year, or one-off contributions.

Regular contributions are made at specific intervals during the year. You would usually make them on a monthly or quarterly basis, but you can choose a different frequency if it suits you better. There is no minimum amount to make a contribution.

One-off contributions are made sporadically, whenever it suits you to pay a certain amount or at certain times of the year, up to the maximum limit.

One last aspect to bear in mind is that contributions to individual pension plans have a maximum annual limit of €1,500 and €8,500 in the case of group or company pension plans. The joint maximum contribution is therefore €10,000 per year.

The maximum contribution of €1,500 to individual pension plans should not be confused with the annual tax deduction limit, which is set at the lower of the following amounts: €1,500 annually or 30% of net income from employment and economic activities received individually during the financial year.