Personal Pensions / PRSA

Personal Pensions are for the Self-Employed and those in Non-Pensionable Employment, whereby these individuals can save for their retirement whilst enjoying tax relief at your highest tax band (up to certain limits).

There are also substantial tax advantages upon retirement. Personal Pension/PRSA holders are entitled to take up to 25% of their accumulated fund Tax Free and then have a range of options in relation to the balance of 75%. Subject to Revenue Regulations there are the possibilities of annuity purchase, A(M)RF/ARF investment or taxable cash.

Company Pensions

For Company Directors or key employees of small Limited Companies, Company Pensions are arranged on an individual basis. Individual contributions are subject to the maximums shown under personal pensions, but Company Contributions are not subject to the same limit, therefore giving a potential saving on both Personal Tax and Corporation Tax Liabilities. Yes, there is an overall contribution limit but this varies from individual to individual and there is usually much scope for tax efficient funding and we will carefully examine this when discussing with you or your company.

In addition, for directors who control more than 5% of the voting rights of the company there are additional options on retirement to the traditional compulsory purchase annuity. They may elect to take their benefits in the same way as a Personal Pension Plan holder (i.e. take up to 25% Tax Free and the balance in an Approved Retirement Fund) or under the normal rules i.e. up to 150% of final salary and a reduced pension, based on 20 years service. Pension income in retirement is subject to income tax at your highest rate on withdrawal and will include any levies payable at that time.

Warning: The value of your investment may go down as well as up

Pension products are provided by Irish Life Assurance plc. Pension products are long term savings plans that can only be taken at retirement. Tax relief is not guaranteed. To claim tax relief, you can apply to your Inspector of Taxes to adjust your tax credits. Contributions deducted from salary will receive immediate tax relief. Any employer contributions will receive tax relief in the year the contribution is made. We advise that you seek professional tax advice as the information given is a guideline only and does not take into account your personal circumstances.