At Declan Maher Financial Services Ltd we specialise in Pre and Post Retirement planning for Business owners, Self Employed Individuals, Executives and Employees. Retirement planning is one of the most important aspects of Financial Planning. Because of the complexity and the myriad of options, the input of a professional and objective adviser is essential.
The key elements of retirement planning include:
- Retirement Goal Setting
- Ensure the Maximisation Tax- Relief
- Developing an appropriate investment strategy suitable to your risk profile & age.
- Post Retirement Options – Annuities or Approved Retirement Fund/ Approved Minimum Retirement Funds
Whether you’re looking for a simple PRSA, or want to be in control of your own self- administered pension, we will help you put together a retirement plan that will enable you to build the maximum fund possible and will reduce your tax liability. We will select the best retirement plan for you and monitor it to ensure it continues to meet your risk profile, needs and objectives. There are plenty of options for you to choose from and we are here to assist you in making the right decision.
Executive Pension Plan
There is now probably no better method of converting company monies into personal wealth than through a Director’s pension scheme. Executive pension plans are tax efficient retirement products for business owners and company directors. It is a Revenue requirement that your company invests in your executive pension and you can make additional voluntary contributions to it if you wish. Both you and your company benefit from generous tax reliefs on contributions to your pension and your money grows tax-free until you retire. As a holder of an executive pension at retirement you will have the option to take a lump sum of up to 25% of your retirement fund or you may take a lump sum of up to one and a half times your final salary at retirement. You can then decide to take your remaining benefits in a number of ways.
Personal Pension Plan
Personal Pension plans are available to the self-employed or to anyone who earns an income but is not a member of an employer sponsored pension plan. The amount which you can contribute into a personal pension plan and benefit from tax relief at your highest rate, relates to both your age and your net relevant income in the year in question.
Under 30 years = 15% of net relevant earnings
30 to 39 years = 20%
40 to 49 years = 25%
50 to 54 years = 30%
55 to 59 years = 35%
60 and over =40%
A limit of €115,000 applies in respect of net relevant earnings. Contributions can be made on a regular basis or by way of single payments.
The main benefits of contributing to a Personal Pension stem from the tax treatment of the funds both on entry and subsequently when drawing the benefits down in retirement. Firstly contributions made up to the limits shown above benefit from tax relief at your highest rate of income tax. It is also important to note that any investment growth achieved within the pension plan is exempt from tax.
Personal Retirement Savings Account (PRSA)
They are very similar to Personal Pension Plans, but have a number of features that make them more flexible: A PRSA (Personal Retirement Savings Account) is a flexible and transparent retirement product available to anyone, regardless of their employment status. If employed, both you and your employer can contribute to it and your contributions are not taxed (subject to limits). You can carry the PRSA from one employment to another, and can switch into (or from) a variety of other pension plans. If you cease an employment, you could take the benefits from a PRSA from age 50. Charges are low and are limited by law (Standard PRSA)
Small Self Administered Pension (SSAP)
These are occupational schemes for company directors and business owners with less than 12 members. One of the main reasons someone may use a SSAP is for the broad investment options it offers. You are allowed to invest in all types of assets, subject to Revenue rules. That includes most forms of investment funds, shares, property & cash deposits.
Under Revenue rules, all SSAPS must have a Revenue approved Pensioneer Trustee, who will act as a pension administrator and along with our firm will inform you of all the rules and regulations you need to comply with. The term “Self-Administered” means that you are not buying a pension from a life company, therefore there may be more parties to the contract who will be required to provide services such as record keeping and various legal and reporting functions, which would normally be offered by your pension provider. Declan Maher Financial Services Ltd can facilitate all of these areas for our customers through our relationships with various Trustees. In certain circumstances SSAP’s may be a suitable alternative to conventional pensions and offer the individual full control of their retirement funds without the requirement to use an insurance company.
Most people, during their career, accumulate a number of different pension plans. Yet maintaining separate plans can be laborious and complicated and may lead to lost investment opportunities, exposure to undue risk and higher costs. At Declan Maher Financial Services Ltd our aim is to make things easier for you. We can help you avoid these problems and give you greater control over your Investment strategy by working with you to consolidate your retirement funds into one pension plan.
The potential benefits of consolidating your pensions won’t apply to everyone, and there may be drawbacks to moving your pension plans – particularly so for certain types of pension. We will carefully consider all aspects of your existing pensions before making a decision as to whether or not to consolidate. As well as whether the total size of your pension funds make consolidation viable.
As part of our service, we will:
- Review your existing pension plans
- Identify and fill any funding gaps
- Define the Appropriate asset mix for your risk profile.
- Develop a retirement strategy that best suits your needs.
Some advantages of consolidation are as follows:
- It should make managing your pensions a lot easier and less time-consuming
- With only one pension plan to keep track of, monitoring the performance of your pension fund is simpler and quicker
- We can ensure that your new overall asset allocation is consistent with your goals and attitude to risk
- It becomes much clearer whether your current level of contributions and overall retirement funds are sufficient.
- It’s more cost-effective; you pay only one set of management charges, rather than separate charges for a multitude of plans