Preparing for your retirement is not only financially prudent, but can also be very tax efficient. With sensible, jargon free advice, we’ll help you understand and avoid the Pension pitfalls.

 

Executive Pensions – As a business owner you can provide for your retirement by extracting funds from your business in a very tax efficient manner. Your pension fund is separate and “ring-fenced” from the fortunes of the business, thereby providing additional security

 

Self Administered Pensions (SSAP) – In essence just another type of Executive Pension, which is best suited to owner directors or senior employees. The individual has full control of their pension arrangement, in that it allows the owner/director to choose what assets the pension fund should hold (using an insurance company is no longer required)

 

Personal Pensions – If you’re self-employed, or employed but not part of a company pension scheme, a Personal Pension allows you to provide for your retirement, in a very tax efficient manner

 

Personal Retirement Savings Accounts (PRSA) – If you’re self employed, or employed but not part of a company pension scheme, or if your future employment status is likely to move between self-employed and employed, PRSAs are a good option

 

Additional Voluntary Contributions (AVC) – AVCs are tax efficient pension contributions that can be made where an individual’s pension fund is likely to fall short of Revenue’s maximum allowable benefits. Payments can be monthly or one off, typically paid in October each year, when the individual is finalising his previous year’s tax affairs

 

Personal Retirement Bonds (PRB) – When an individual leaves employment, he has the option to transfer his entire pension fund to a PRB in his own name. This ensures the individual has control of the fund, rather than the Trustees of his former company pension scheme

 

Approved Retirement Funds (ARF) – When an individual retires, he has the option to transfer his pension fund to an ARF. This is simply a post-retirement investment vehicle, into which his pre-retirement pension fund is transferred

 

Annuities – When an individual retires, he has the option to use his pre-retirement pension fund to purchase a lifetime Annuity (a guaranteed income for life)

 

Pension Term Assurance – This is simply a life assurance policy, but as it is governed by relevant Pension legislation, premiums are fully tax deductible. These policies cannot be assigned to a bank as security against a loan or mortgage, but are a very tax efficient way of putting in place “personal” life cover

 

Group Schemes – For larger organisations, Group Pension, Life, Critical Illness and Income Protection schemes can be put in place. These can be significantly less expensive than individual arrangements and are an excellent way of recruiting and retaining quality staff