Retirement Planning

Personal Pension

We can assist you in finding the right pension for you based on your current circumstances. The manner in which you earn money can determine the types of pensions you can take out. Personal Pensions are ideal for those that are Self Employed. Over the last number of years Personal Pensions Plans have introduced lower fees and greater fund options. Pax Financial Planning can help you find the pension to best suit your needs.

PRSA’s

PRSA’s are a perfect fit for PAYE workers that would like to have their pension contributions deducted via payroll. PRSA’s are transferable meaning should you leave your employment you can bring your PRSA with you to your new employer. The main advantage of a PRSA is to stop individuals having multiple pension plans from different employments when they reach retirement age.

Company Pension

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 be also tailored 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 the employer and employees.

Approved Retirement Funds

An Approved Retirement Fund (ARF) is a fund used to control ones pension after they have retired their pension fund. You must take a minimum withdrawal of 5% 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 rules those that retire a pension scheme are required to have a minimum earned income of €12,700 per annum. Earned income does not included rental income. If one does not have this minimum income then a figure of €63,500 must be set aside in an Approved Minimum Retirement Fund (AMRF) until age 75. Only the growth on the fund in an AMRF can be withdrawn prior to age 75, therefore a good investment strategy is paramount.

Annuities

For those clients seeking assurance in retirement age, and 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 then use the annuity option later in life.

Personal Retirement Bonds

A Personal Retirement Bond (PRB) is a personal policy in the name of the PRB holder. PRBs are typically use when an individual leave a company pension scheme. The value of their fund when they leave is transfer to the bond until retirement age. At retirement age one can then use the proceeds of the PRB to provide retirement benefits. If you were a member of a company pension plan in the past and would like our Financial Planner to see if you can use a PRB structure please contact the office to arrange a meeting.