It’s never to start a pension.
Pensions can seem complicated
It’s important to invest in yourself, so that when you reach retirement you can maintain the lifestyle you want.
We’ll make pensions easy for you and we’ll make sure you understand the benefit you get from your pension.
We can help you find the right pension for you based on your personal circumstances. The manner in which you earn money can determine the type of pension you can take out. Personal Pensions are ideal for those who are self employed.
Over the last number of years Personal Pension Plans have introduced lower fees and greater fund options. Pax Financial Planning can help you find the pension to best suit your needs.
PRSAs are a perfect fit for PAYE workers that would like to have their pension contributions deducted through payroll. PRSAs are transferable, meaning that if you leave your current employment you can bring your PRSA with you to your new employer.
The main advantage of a PRSA is to avoid you having multiple pension plans from different employments when you reach retirement age.
A Company Pension is perfect for Company Directors and/or employees of a company. Other benefits such as Death in Service (Life Cover) and Income Protection can also be catered for when setting up a Company Pension.
The company needs to contribute a minimum of 10% of the employee contribution. A Company Pension contribution reduces tax for both the employer and the employees.
Approved Retirement Funds
An Approved Retirement Fund (ARF) is a fund used to control a pension fund after retirement. You must take a minimum withdrawal of your fund value annually. However, there is no cap on withdrawals.
Withdrawals are subject to income tax and levies. Therefore, advice from a member of our team in Pax Financial Planning is extremely important when considering retirement options.
In order to satisfy revenue pension rules, in order to hold an ARF, you are required to have a minimum guaranteed income of €12,700 per annum. Guaranteed income does not include rental income.
If you do not have this guaranteed income, then a figure of €63,500 must be set aside in an Approved Minimum Retirement Fund (AMRF) until age 75. Only one withdrawal can be taken from an AMRF each year capped at certain %. Therefore, a good investment strategy is paramount.
For those clients seeking assurance in retirement age, and who no longer want the worry of fund performance, annuities are the perfect fit. However, annuity rates (like deposit rates) are linked to interest rates which are currently extremely low.
The older the individual the higher the annuity rate. Therefore some clients prefer to first use the ARF/AMRF structure and then use the annuity option later in life.
Personal Retirement Bonds
AA Personal Retirement Bond (PRB) is a personal policy in the name of the PRB holder. PRBs are typically used when an individual leaves a company pension scheme. The value of their fund on exiting the scheme is transferred to the bond until retirement age.
At retirement age, the proceeds of the PRB can then be used to provide retirement benefits. If you were a member of a company pension scheme in the past and would like our Financial Planner to see if you can use a PRB structure, please contact us to arrange a meeting.
We offer a financial planning service that is built around you.
Our team of highly qualified consultants will provide you with honest and unbiased financial advice that you can trust.