Private Pensions
Private Pensions
There are several ways to best arrange your Personal Pension Plan dependent on your individual circumstances.
Our job is to provide the best pension advice, offering the broadest range of investment choices at minimum cost, aligned to your investment risk profile and sustainability preferences.
Private Pensions
We compare the market for the best pension products and offer the broadest range of investment fund options, which can include ESG investing.
Our advice includes multi-asset diversification to manage risk, but also allows a choice of passive and active management, with a mix fund manager strategies by way of a bespoke portfolio design.
Private Pensions
Come retirement, when you’re ready to take your benefits, your options are to take a tax-free lump sum and buy an Annuity which is a pay cheque for life, or having taken your lump sum to reinvest the balance in an ARF and make income withdrawals from that.
You can draw a tax-free lump sum based on your salary and service to a maximum of 1.5 times final remuneration where you have completed 20 years of service, or you can take 25% of the value of the pension pot.
A limit of €500,000 applies to the tax-free lump, where the first €200,000 is tax-free and the balance is taxed at 20%.
An annuity pays a retirement income for the rest of your life in exchange for the balance of your pension pot at retirement, after taking your tax-free lump sum.
An ARF allows you to retain your residual pension pot at retirement, subject to minimum withdrawals, and can be passed on to your family on death.
Private Pensions
Pension contribution tax-relief is more generous as you get older, however, you still pay PRSI and the Universal Social Charge.
It rises from 15% under age to 30, to as high as 40% over age 60.
There is an upper limit on the annual earnings, which currently stands at €115,000. Jointly assessed couples can however each avail of their own separate thresholds.
Relief is only from the source of income in respect of which the contributions are made.
For example, an employee who is aged 42 and earns €40,000 can get tax relief on annual pension contributions up to €10,000.
Questions & Answers
All you need to know in regards to your personal pension plan.
A Personal Pension Plan is the most cost-effective retirement savings solution for the long-term self-employed.
Yes, all private pension holders are still entitled to the State Pension in addition. The current State Social Welfare Pension is only: €248.30 per week. Currently, contributory pension starts at age 66 and the non-contributory not until age 67. Personal pension plan benefits can be taken from age 60 onwards and will not reduce your State pension benefits.
A Personal Pension provides full tax relief on contributions, as well as tax-free fund growth and a tax-free lump payment option come retirement.
AGE – MAXIMUM PENSION CONTRIBUTION AS % OF NET RELEVANT EARNINGS
You make regular monthly contributions via direct debit from your personal bank account. You can also make ad-hoc lump sum payments at the end of each via online transfer to reduce your previous year’s balancing tax bill.
We compare charges and investment performance of all leading insured and self-directed pension providers. We ensure that the recommended pension plan option, matches your appetite for investment risk and that any charges are fully transparent and kept to a minimum. We also offer you full online access to your pension plan from inception, with free annual investment performance reviews.
If you are signed up to a personal pension plan, you can expect the full gross value of your plan to go to your estate.
You can now retire from age 60 and take 25% of your fund tax-free, under a Personal Pension.
If you have to stop working due to serious ill-health, you can take your pension benefits earlier than these stated ages!
Once you have taken your 25% tax-free, you can choose to reinvest the balance in an ARF (investing in funds for tax-free growth as before) and make regular and ad hoc withdrawals to provide an income.
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OneQuote Financial Brokers,
11 James’s Terrace, Malahide,
Co. Dublin, K36 CV08
One Quote Financial Brokers is regulated by the Central Bank of Ireland no: 459006.
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