Pension Planning
To build a nest egg for your future, you need to start early, nurture it, and watch it grow. It’s a long-term savings plan that ensures you have enough money to enjoy life after work. By understanding your retirement needs, choosing the right plan, and making regular contributions, you’re building a secure and stress-free future for yourself and your loved ones.
the process
We start by evaluating your current financial situation, retirement goals, and how much risk you’re willing to take.
We establish your pension and handle everything from start to finish, making the process simple and stress-free.
We explain the tax benefits of different pension options to help you optimise your tax savings.
We review your plan every year. This ensures we are keeping you on track and aligned with your goals.
As of the third quarter of 2024, approximately 67% of workers in Ireland had supplementary pension coverage beyond the State pension, according to the Central Statistics Office. [Source] This leaves about 33% of workers without additional pension arrangements.
Plan for the future
A pension is the smartest, most tax-efficient way to save for retirement. How much you’ll need depends on the lifestyle you want. The more you save now, the more freedom you’ll have later—it’s that simple! We have a range of pension solutions to suit your situation, at whatever stage of life.
A Personal Retirement Savings Account is like a flexible savings pot for your retirement. It lets you invest your money in different funds, giving you control over how you grow your pension. If your employer doesn’t offer a pension plan, they must give you access to a standard PRSA, which is regulated by the Pensions Authority.
A personal pension is like a savings jar for your future - where you put in money regularly or as a lump sum, and it grows over time. Your contributions are invested to build a fund that supports you in retirement. It’s a great option if you’re self-employed.
A Personal Retirement Bond, or ‘buy-out bond,’ is like a safe home for your old workplace pension. If you’ve changed jobs and want to bring your pension with you, a PRB gives you control over where and how your money is invested. It’s a flexible option that keeps your retirement savings in your hands. Let us help you understand the benefits and risks so you can make the best choice for your future.
As a busy self-employed person or senior executive, pension planning might not be top of your mind, but skipping it could leave you financially vulnerable in retirement. Relying solely on the State pension in Ireland isn't exactly ideal for a comfortable future. The good news? You have the power to take control of your retirement by setting up your own pension. It’s a simple step that can make a big difference down the road.
An Approved Retirement Fund is a post-retirement investment fund for individuals who have taken benefits from a pension. It allows retirees to keep their pension savings invested, rather than buying an annuity. Withdrawals can be made as needed, offering flexibility in accessing retirement income. ARFs are subject to income tax, USC, and PRSI (if applicable) on withdrawals. A minimum annual withdrawal is required, currently 4% once you turn 61, 5% once you turn 71 and 6% where your fund is over €2m.
Auto-enrolment is a new retirement savings system for Ireland, understanding how it works can help you make smart decisions for a secure future. If you don’t have a pension, you’ll be relying on the State pension, which may not be enough to maintain your lifestyle. Auto-enrolment is designed to help, but it’s important to know your options. Let’s chat about how you can prepare for a comfortable retirement!
AVCs (Additional Voluntary Contributions) are extra payments you can make to grow your pension savings beyond your main pension plan. They help you boost your retirement fund, increase your future income, and offer significant tax benefits. With AVCs, you have the flexibility to tailor your pension savings to match your financial goals and retirement plans. It’s a smart way to take control of your future.
A Self-Administered Pension gives you control both pre and post retirement. It allows “execution-only” trading so you can make your own investment decisions to buy stocks and shares, while also offering the flexibility to hold direct property and forestry within the pension. This combines investment freedom with powerful tax efficiency. Under the “news” section of our website we have some more detailed information in relation to this service.
Typically, most people would pay 1% or less per annum to cover all charges and fees associated with their pension. Generally, the fee reduces when the pension is larger in value. Some Self-Administered Pensions could have additional underlying fees like for example a rental agent cost or conveyance costs in purchasing a property which would need to be added in on a case-by-case basis with the clients.
No, your State Pension is based on PRSI stamps you have paid and has nothing to do with your Private Pension. Any income from your private pension will supplement your state income down the line.
It depends! For most people 65 is your retirement age however there is scope for those lucky enough to retire from 50 onwards in some pension structures. The magic number is 60 really in a pension context. Maybe drop us a line and depending on what you have currently we can advise specifically on your situation.
No! Just because you might access your private pension it doesn’t mean that you must stop working! You can make pension contributions into a PRSA up until the age of 75 currently. The modern worker in mainland Europe and Ireland could be happily in receipt of a private pension, state pension and income from a new employment. They can even make contributions to a private pension from their new employment with a view to triggering retirement for a second time.
Try to think of it as a long-term savings plan and it is just about the best long-term savings plan in Ireland in our view. You get tax relief on all contributions at your marginal rates, and you also get tax free growth in retirement! Why pay tax is the question we would ask? At least if you set up a pension and contribute this payment will come back to you and your family down the line when in retirement.
Yes, we have over 300 self-administered properties for clients here in Paul Ryan Financial Advisors and its easily the most efficient way to own an investment property because the rent Is tax free and no capital gains on the sale of the assets because the pension structure is tax exempt.
Yes, all loans are no recourse, the loans are only to the pension asset. The legislation looks at the pension legally as if it’s a separate entity. No CGT, tax free rental and growth. It’s an efficient way to save and we have a paper on this under our news section of the website.
Pre-Retirement this is dependent on the type of pension plan you have, for example if you are an active member of an occupational pension scheme 4 x salary is paid as a lump sum and balance is used to buy an ARF or Annuity for your spouse. For a PRSA or PRB the full value of your pension is paid to your estate.
Post-Retirement in most cases your partner will step into your shoes with no tax liability and take over your pension. On their death the children if any would inherit the pension after paying 30% tax assuming they are over 21. The tax is a composite tax, and the assets are then in their hands personally (No longer pension assets). If you purchase an Annuity or Income for Life from the Life Company, it’s likely that your partner would receive 50% of your pension and on their death the children would receive nothing. Annuities are however quite specialist now and we don’t advise on as many.
There is never CGT tax on an inheritance of a pension, but there maybe CAT (Capital Acquisition Tax) depending on who inherits it. There is no CAT between a married couple/civil partners. CAT on anyone other than these mentioned will depend on the type of pension, relationship, value of inheritance and the inheritance threshold.
Yes, if they are working in your company and you are paying them a salary. Once you have a “income” declared, then a pension can be established.
Ideally, you should aim to contribute to your pension both as an employee and through employer contributions. Having both streams working together is the most effective and tax-efficient way to build a strong foundation for your retirement. It maximises the benefits available to you and helps ensure you’re on track to meet your long-term financial goals.
The contributions are based on age up to a salary max of €115,000. The idea is that you have more relief and scope for pension contributions as you get closer to retirement (less time to build up your fund). The % of contributions range from 15% – 40% depending on age.
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