Pension Planning – FAQ’s

Find the answers to Private Pension Planning – frequently asked questions. Learn about the tax breaks, the importance of reviewing your existing pension and what to do if leaving your employers scheme.

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Pension Planning top-tips
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Pension Planning top-tips

  1. The average person retiring tomorrow aged 65 years has a life expectancy of between 20 – 23 years, that’s a significant amount of time to enjoy in retirement.
  2. It takes a long time to save for retirement and the earlier a person starts the better.
  3. Taking stock of your existing pension can reduce investment charges and allow greater control over your benefits come retirement.

 

Pension Planning – Frequently Asked Questions

How much is the State pension?

The current State Social Welfare Pension is only: €206.30 per week. The contributory pension starts at age 66 and the non-contributory not until age 67. Is this sufficient to meet your financial needs when you retire?

Why should I take out a private pension?

If you have not got a pension in place with adequate contributions being invested to support your income in retirement (and don’t have other significant income or saleable assets come retirement), then you should start a pension plan. How else will you have a sufficient income to enjoy a good retirement?

What are the tax breaks?

A pension plan provides full tax relief on your contributions, as well as tax free fund growth and a tax-free lump payment option come retirement.

I already have a pension plan; why should I review it?

One Quote’s qualified independent pension advisors have many years’ experience in the pensions industry and provide you with expert advice, whether staring out, changing job, reinvesting, or seeking to review your existing pension.

If you’re self-employed, or a company director you may be paying too high an annual management charge, or receiving a reduced investment allocation to support your brokers commission. It is also possible, that your investment funds are not properly aligned to your approach to risk. We can provide a free audit to make sure you’re secure in knowing that you’re getting best value and appropriate investment risk.

Our pension clients also benefit from daily on-line access, half yearly benefit statements and annual review meetings as part of our standard review service.

I am leaving my job, what should I do about my pension?

If you were in a final salary, or defined benefit pension scheme then it is most likely best to leave your fund value there for future access. If you were in a defined contribution scheme, then you should consider moving the fund to your new employers pension scheme, or to your own Retirement Bond were you can govern the investment choices.

I am retiring soon, what are my pension options?

What you can do with the proceeds of your pension plan depends on which employment category you fall into and the type of pension plans you currently hold. Depending on your circumstances there are different options for you to consider at retirement. You have the option to take a tax-free lump sum and may be able to use the balance to avail of:

  1. A pension income for life (an Annuity)
  2. An Approved Retirement Fund (ARF)
  3. A taxable lump sum

Should you wish to reinvest part or all of your accumulated fund in an ARF contact us for more information on: 1890 727111.

How do I ensure best advice and value for money?

We compare charges and investment performance of all leading insured and self-directed pension providers. We ensure that the recommended pension option, matches your appetite for investment risk and that any charges are fully transparent and kept to a minimum. We also offer full on-line access to your pension plan from inception, with regular investment performance reviews.

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