Pensions

PENSIONS

Pensions are an integral part of your long term financial planning strategy.  In planning for your retirement, it is important to put in place a strategy that will enable you to replace earned income in your retirement. Pensions are a tax efficient way of saving for the future where your fund can also grow tax free.

Your pension options will vary depending on your employment status and your retirement expectations. Life expectancy continues to increase and this creates a need for income for a longer time in retirement than ever before.

We manage a broad range of services in the pensions area. This ranges from company sponsored schemes to individual planning for owner directors and the self-employed. Whatever your employment status we provide comprehensive advice on all pension products available. As an Authorised Advisor, we will provide you with best independent advice for the following areas:

  •     Personal Pensions
  •     Executive Pensions
  •     Corporate Group Schemes
  •     Additional Voluntary Contributions (AVCs)
  •     Self Administered Schemes
  •     Self Invested Personal Pensions
  •     Approved Retirement Funds (ARFs)
  •     Approved Minimum Retirement Funds (AMRFs)
  •     Personal Retirement Savings Accounts (PRSAs)
  •     Annuities

Personal Pensions

If you are self-employed or employed but not part of an employer’s pension scheme, then a personal pension plan lets you plan for your retirement and enjoy the tax benefits.

Executive Pensions

As a director or business owner you can provide for your retirement in a way that is separate from the fortunes of your business and takes full advantage of the generous tax benefits.

Corporate Group Schemes

Every employer must allow employees access to some form of a pension plan in order to meet their legal obligations to its employees. There are numerous pension options that allow companies to meet their responsibility and provide a mutually rewarding benefit for their staff.

Additional Voluntary Contributions (AVCs)

Additional Voluntary Contributions are a way for individuals to make extra contribution to their group or executive pension plan while availing of tax relief.

Self Administered Schemes

These are well worth considering if you are an owner-director or senior employee of a business and you can make substantial pension contributions. You get to choose from the full range of investment options on the market including equities, property, bonds and cash.

Approved Retirement Funds

Approved Retirement Funds (ARFs) are a very effective way of managing your income in retirement and can form a part of your overall financial and inheritance planning. With AMRFs and ARFs you can re-invest your pension fund and take the money out when you need it. In order to take out an Approved Retirement Fund you must have a guaranteed pension income for life of €18,000 per year (from other sources than your ARF investment). If you do not fulfill this requirement, you must invest €119,800 of your pension fund into an Approved Minimum Retirement Fund or buy an Annuity with that amount. Once you have put this money in an AMRF or an Annuity you can put any remainder into an ARF.

Approved Minimum Retirement Funds

Approved Minimum Retirement Funds (AMRFs) are similar to ARFs, however subject to certain requirements you must place a minimum of €119,800 into AMRF. You have control over the investment of the funds, which can grow DIRT free within the fund. However, you only have access to investment growth before age 75.

Personal Retirement Savings Accounts (PRSA’s)

Personal Retirement Savings Accounts are a low cost form of pension for those who are self employed, or do not have access to a pension scheme through their employer. And if your employment status changes or you move to a new employer, you may be able to bring your PRSA with you.

Annuities

An annuity is what many people commonly refer to as a pension. The most common option at retirement is to use your accumulated pension fund to buy an annuity from an insurance company. This is a guaranteed income for the rest of your life. The amount of income you receive will be based on, among other things, your life expectancy at retirement – so will vary by retirement age and gender – and the size of your retirement fund! Unlike a tax-free lump sum, you pay income tax on income from an annuity.

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BDO is a firm of registered auditors and is registered to carry on audit work in Ireland and the UK by the Institute of Chartered Accountants in Ireland. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number 223876. BDO is also authorised to carry on investment business in the Republic of Ireland by the Institute of Chartered Accountants in Ireland.