Imperius Wealth

Imperius Wealth
Imperius Wealth
01 524 1040
hello@imperiuswealth.com
Facebook Youtube Linkedin
LET'S TALK

Retirement Planning When
You've Got Multiple Incomes

Retirement Planning When You’ve Got Multiple Incomes

Retirement Planning When You've Got Multiple Incomes

Having more than one income sounds like a win, and it usually is. But when it comes to retirement planning, things can get… well, messy. Different income streams can trigger pension contribution limits and tax rules most people aren’t even aware of. Here’s how to make sense of it, and make it work for you.

First up: The €115,000 Limit

The Revenue caps how much income can be used for tax-relievable pension contributions. That cap? €115,000 per year.

But there’s more:

 

  • You can only pension income up to that €115,000 limit
  • There are age-related percentages that apply too
    (e.g. if you’re in your 40s, you can contribute 25% of that €115,000)
 
  • Example

If you earn €150,000 and you’re 45:

 

  • Only the first €115,000 counts
  • 25% of that = €28,750

That’s your max pension contribution for tax relief that year.

Multiple Income Streams = Extra Rules

It gets more complicated when you have more than one income source.

Let’s say you:

  • Work in the public sector and have private clients
  • Are a GP with both capitation income and private work
  • Have a main job plus freelance side gigs

In these cases, Revenue says you need to look at the income linked to an occupational pension scheme first. If that income uses up your €115,000 allowance, the other income can’t be pensioned at all that year.

What That Looks Like

  • If your primary pension-linked job earns €115,000 or more, any secondary income (like freelance work) is outside the pension scope
  • If the combined income is under €115,000, then both streams can be pensioned — but still within the total cap

Real Life Scenarios

Mary, GP (Age 56)

  • GMS income: €100,000
  • Private practice: €80,000
  • Already pays 5% (€3,750) into her GMS pension

She can:

  • Make an AVC of up to €31,250 (35% of €100k – existing contribution)
  • Only pension €15,000 of her private income (remaining slice under the €115k cap), so max of €5,250
 

John, Consultant (Age 49)

  • HSE income: €150,000
  • Private work: €100,000
  • Already contributes €9,750 to his public scheme

He can:

  • Make an AVC of up to €19,000
  • Cannot pension his private work income at all – the HSE salary already hits the cap
 

Paul, Pharma Employee (Age 54)

  • Job income: €80,000
  • Self-employment: €30,000
  • Employer and employee both pay 8% into his scheme

He can:

  • Pension both incomes because combined = €110,000
  • Add up to €17,600 to his job pension (after subtracting his 8% contributions)
  • Contribute €9,000 into a personal pension or PRSA for the freelance income

     

    The rules around multiple incomes and pensions are tight, and easy to get wrong. But with the right structure, you can stay tax-efficient and keep growing your retirement pot. If your income mix is getting tricky, give us a shout. We’ll help you build a pension strategy that actually fits your real life.

If you would find above information relevant and would like to discuss further, please contact one of our financial advisers at hello@imperiuswealth.com to arrange a callback.

Subscribe to our quarterly newsletter.

By submitting this form, you agree to receive emails from Imperius Wealth. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.