Someone in their 30s can contribute 20% of their salary each year.
The 40% tax band kicks in at €40,000 for a single person
That allows them to contribute €8,000
It is unlikely that they can afford €8,000 every year.
So say they contribute €5,000 - that will cost them €3,000.
But if they have spent their savings contributing when they were getting tax relief at 20%, they won't be able to afford the €5,000.
Do you think that someone can afford to pay 15% of their salary every year up to the age of 30 when they are earning under €40,000 and 20% every year up to the age of 39 and pay their mortgage and meet all their other expenses?
I don't think so. So when they are paying 20% tax, they should be paying down their mortgage so that they will have scope to increase their contributions and use up the maximum when they are paying 40% tax.
Brendan