Pensions and Retirement

Pensions:

RetireUnfortunately, no matter what we may think, the day will finally arrive when all of us will cease working.  Therefore, it is essential to provide for this event and the means to do this is to put in place an appropriate Pension Plan.  Irrespective of which category (see below) you fall into, there are a number of common issues which need to be addressed in establishing an appropriate Pension Plan, namely:
  • Which type of Pension is best suited to your circumstances.
  • The level of contributions.
  • Availing of tax relief on premiums.
  • Options at retirement age.
  • Choosing a fund for your premiums.

As a Pension is a long-term plan, we believe that it is important to continually reassess your position, both in relation to premiums and investment strategy, every 5 years.  Too often, we encounter Pension Plans which have been in place many years ago, and have never been reviewed.

Each of us will fall into one of the following categories, depending on our employment status.

Personal Pension Plan/PRSA:

Utilized for those who are self-employed or employees where their employer does not have any Occupational Scheme in place.

Executive Pension Plan:

Utilized for company directors and other key executives.

Occupational Pension Scheme:

This is a group Scheme established by an employer to provide for their staff. Providing  an Occupational  Scheme creates considerable goodwill between employer and employee, along with assisting in staff retention.

Retirement:

Planning for Retirement:Retirement

It is essential to plan for your retirement at least 2-3 years prior to the event.  This process should involve conducting a comprehensive review of your financial structure, an integral part of which being: the benefits you will receive from your Pension.  For those in the self-employed/executive categories, it is essential to monitor closely the performance of your Pension up to actual retirement, with a particular focus on reducing the risk profile of the funds that you are invested in.

We find that too often this process is not undertaken, leaving the retiree sometimes with the unpleasant experience of seeing a considerable drop in the value of their funds at retirement date.

Post Retirement: 

Once you have retired, there are a considerable number of further issues which need to be addressed namely:

  • Deciding on the best retirement options for your circumstances.
  • How to best utilize the tax-free lump you receive.
  • Income requirement in retirement.
  • Options available for investing in an Approved Retirement Fund (ARF) or an Approved Minimum Retirement Fund (AMRF).

The entire area of Pension provision and retirement planning is a complex one, which requires ongoing planning and the need for professional advice.

We would also highlight the importance of reviewing any older Pension Plans that you may have in place 

Call us today on 091 566022 to make an appointment with our Financial Advisor to ensure you make the right decision.