If its a PRSA or a Personal Pension Plan your after as a Self Employed person or maybe you’re a PAYE Employee who has been offered to join the company pension scheme. Perhaps you’re a company director and you’d like to pay less Corporation Tax, then we would definitely like to speak to you. To most people, pensions are a very complicated instrument to help plan for retirement.
At Christy McGee Insurances we believe in simplifying the process. After all, a pension is simply a long term savings plan that you get tax relief on… Simple….
Some other benefits of a pension can be found here with our 10 reasons to invest in a pension, like any growth on your pension fund is 100% tax free, unlike a savings account or deposit account.
There are many different pension providers in the market at the minute with many different pension contracts and trying to navigate around them can be daunting. At Christy McGee Insurances we understand this, that’s why we make the process as simple as possible. Our highly trained Advisors are eager to help you find the most suitable pension product for you. Christy McGee Insurances are a multi agency advisor and hold agencies with all the major pension providers in the country. It’s our job as Advisors to find you the most cost effective, best performing & suitable pension given your employment status.
Age-related earnings percentage limits
You can get tax relief up to the relevant age-related percentage limit of your earnings in any year.
You might have more than one source of income. If you do, this relief is only from the source of income in respect of which the contributions are made.
Age-related percentage limit for tax relief on pension contributions
60 or over
For example, an employee who is aged 42 and earns €40,000 can get tax relief on annual pension contributions up to €10,000.
Total earnings limit
The maximum amount of earnings taken into account for calculating tax relief is €115,000 per year.
There are many different uses for a Pension. You can use it for funding for a retirement ‘nest egg’ or you can use it as Wealth Extraction from your business. You can use it to fund for a retirement Tax Free Lump sum of 1.5 times your salary*
If you’re an Employee in a company, you can decide to have your pension payments taken directly from your salary. A company pension scheme allows you to get a Tax Free Lump Sum at retirement as well as regular income to join your state pension. Everything you pay into your pension, gets tax relief at whichever rate of tax you pay.
If you’re Self Employed or if you’re employer doesn’t operate a company pension scheme then a PRSA is suitable for you. A PRSA is a very portable means for saving for retirement. A PRSA follows you if leave your job to take up employment elsewhere. PRSA’s have a broad range of investment options available to them and anything your contribute into your PRSA, is tax deductible.
Personal Pension Plan
Personal Pension Plan’s are a very cost effective way of funding for Retirement. Like PRSA’s & Company pensions, you can claim tax relief on your monthly contributions. You can also offset any end of year tax bills you might have by placing a lump sum into your Personal Pension Plan. Like PRSA’s, self employed people and people not included in their company pension scheme can take out a Personal Pension Plan.
PRB's / Buy Out Bonds
BOB’s (Buy Out Bonds)/ PRB’s (Personal Retirement Bonds) are one of the same. Some providers have different names, but the equate to the same thing. When you leave your job and are no longer in your company pension scheme, you can take your pension with you when you leave. A BOB/PRB is basically a pension that you have transferred to your own name. Like other pension products, they’re very portable and can be added into your new company pension scheme. You can access the Tax Free Lump Sum from a BOB/PRB from 50 years old, so if you’ve changed jobs and left your pension behind, why not speak to us about how you can regain control of it.
Once you have taken your Tax Free Lump Sum from your Pension, you can opt to have an ARF (Approved Retirement Fund)/ AMRF (Approved Minimum Retirement Fund). This allows you to take variable income from your pension fund. Any balance that’s left when you pass away can be left to your estate or willed to someone in particular unlike a traditional annuity option.
Warning: The value of your investment may go down as well as up. Warning: Past performance is not a reliable guide to future performance. Warning: This product may be affected by changes in currency exchange rates. Warning: If you invest in this product you may lose some or all of your money.