- Wednesday 20 August 2025
A recently onboarded client had been diligently saving into a Personal Retirement Savings Account (PRSA) for over 15 years. Set up directly with Irish Life, he contributed monthly without fail, and had built a pension pot just shy of €100,000 - an excellent achievement. But in reviewing his plan, we uncovered a costly oversight: he had never been told he was required to manually claim the tax relief on his contributions. Over the years, that meant he had missed out on relief at his marginal rate - nearly €60,000 worth of contributions had gone in without the corresponding benefit.
The Solution
Our immediate step was to contact Revenue, explain the circumstances, and see if relief could be applied retrospectively. Normally, Revenue will only allow claims for the previous four years. In parallel, we engaged with Irish Life to request meeting notes and documentation to determine whether the necessary disclosures had been made when the policy was set up. These details will help us in negotiations to ensure the client gets fair treatment.
The Benefit
While discussions are ongoing, what’s already clear is the scale of what could have been lost if this had gone unnoticed. Even under the strict four-year limit, the client stands to reclaim at least €30,000 in relief. Left unaddressed, this oversight would have meant walking away from a life-changing sum.
Lessons Learned
- Check your tax relief: PRSA contributions don’t automatically trigger relief - you may need to claim it manually.
- Review older plans: Rules, processes, and disclosures may have changed since you set up your pension.
- Don’t assume the provider handles everything: Responsibility often rests with the individual.
- Seek advice early: Regular reviews can prevent costly mistakes and uncover valuable opportunities.
A simple pension review could uncover missed opportunities - just like it did for this client. If you’d like us to take a closer look at yours, let us know.
