We are blowing a hole in the government's budget
Ditch the earn-more, spend-more trap
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A new hole in the government's budget
Last week I shared a guide on how to get money back from the Irish government through pension tax relief.
The response? Over 700 requests in just one week.
I think we're about to blow a hole in the Revenue's budget this year.
But with that many downloads came a flood of questions. So this week, I'm answering the most common ones.
A Quick Reality Check
Before we dive in, here's what my tax adviser friend said about the guide:
"Hits the nail on the head. I'm still shocked at how few people know about this."
That tells you everything. If tax professionals are shocked by how little people know about this, imagine how much money you've been leaving on the table.
"Do I have to invest first to get the money back?"
Yes, but here's why that's brilliant news.
When you invest €10,000 as a lump sum AVC, you get 40% back from your taxes. That means your actual cost is only €6,000.
You've just got an instant 66% return on day one. Where else can you get that guaranteed?
"I'm already doing AVCs through payroll. Can I claim more?"
Well done. You're ahead of 95% of people I speak with.
But here's the thing: most people don't max out their full allowance through payroll. You probably have room for additional lump sum contributions.
Check your annual statement. If you're not hitting your maximum allowable contribution (40% of your salary), there's more money waiting for you.
"What if I don't plan to stay in Ireland?"
Invest anyway.
Your Irish pension can grow for decades, wherever you end up living. When you reach retirement age (age 50 in some plans), you can access it from anywhere in the world.
Just be aware of local tax rules when you eventually withdraw it.
"My accountant handles this stuff"
Are you claiming back thousands every year? If not, they're not handling it properly.
I used to have a tax adviser who told me how much I owed each year. He mentioned I could "offset it by investing in my pension" but never explained the long-term benefits.
I just paid the tax cause I didn't know any better. I will never see that money again.
Don't be me. Make sure your adviser is actually maximising this for you.
"I already filed my 2024 return. Can I change it?"
Yes, and you absolutely should.
Revenue allows you to amend returns. Don't leave money on the table because of timing.
This is a yearly opportunity. Use it every single year.
"I don't have cash to invest"
Here's what most tech workers miss: you probably have shares you could sell.
It's not about finding new money. It's about moving money around intelligently to claim back thousands.
Sell some shares, invest in your pension, get the tax relief, then use that relief to invest more. You end up ahead.
"Can someone just do this for me?"
You should be able to handle this yourself. It's not complicated.
Try this: paste this prompt into ChatGPT or Claude:
"How do I claim income tax relief on Revenue's MyAccount when I have done a pension lump sum AVC?"
But if you want hand-holding, yes, there are people who can help. Just don't use that as an excuse to delay.
"My pension isn't growing fast enough"
This is probably because you're stuck in a default investment fund that's designed to be "safe" rather than actually grow your wealth.
Most default funds are rubbish. Conservative, low-growth options that barely beat inflation.
That's a problem we'll solve in a future guide. But don't let the fear of poor fund performance stop you claiming the tax relief. We can fix the investment strategy later.
The bottom line
Look, this isn't complex financial wizardry. It's basic tax efficiency that every high earner should be using.
The fact that over 700 people downloaded this guide tells me one thing: there's a massive gap between what people think they know about tax and what they actually know.
Don't be the person who looks back in 10 years wishing they'd acted on this information.
The guide is still available if you need it:
And if you'd like to work with me 1:1 you can book a free strategy call to find out what is keeping you financially stuck and how we can fix it together.
All calls for July are gone but if you'd like to get started in August we can make that happen!
Do you have questions that I haven't answered? Please hit reply and I will help you if I can.
It might take a week though because I am about to get on a plane to the Netherlands.
I will be participating in 'de Strand6daagse'. It's a 140km beach walk from the south of the country to my home town in the North.
To your financial freedom,
Sjoerd
P.S. If you do claim those €1,000s back from your 2024 taxes, will you send me a quick note? I love hearing when people benefit from this content.
Quick reminder: I'm not just a coach - I'm someone who's walked this path myself. Left corporate after 11 years at Salesforce, built my own financial freedom, and now I help others do the same.
Real experience.
Real results.
Real transparency.
