Frequently Asked Questions
The process of starting a pension is relatively straightforward. Assessing your overall financial situation will be the first step. From here yourself and your financial adviser can discuss contributions and a plan going forward.
Having a pension will give additional income in retirement. The State pension is currently a modest €248 a week. If the thought of surviving on €35 a day isn’t enough, the tax benefits of starting a pension are also attractive.
Your pension can be invested in a wide range of fund choices. Often, people will choose to invest in a multi-asset style to diversify risk. This means it may be invested in a mixture of bonds, cash, equities and property for example.
A personal pension or private pension are pensions organised individually by self-employed people or those who do not have access to an occupational pension scheme. These personal pensions are managed by a life assurance or investment company.
A Personal Retirement Savings Account is similar to a personal pension. It can be taken out with an authorised PRSA provider. It’s purpose is to help you save for retirement. You have the ability to make regular contributions which are tax deductible within certain limits.
Yes. This will vary depending on your age and occupation.
|Age||% net relevant earnings|
|60 or over||40%|
(Up to a limit of €115,000 per year)
If you have a private pension from working in the UK, it is likely you will be able to transfer your benefits. There are certain benefits of transferring your UK pension back to Ireland. However, as with most aspects of pensions, there are several factors to consider. Ensure you enlist the help of a qualified professional to assist you.
Having the ability to cash in your pension early will depend on a number of factors. Your age and the type of pension scheme will be the main considerations. As a rule of thumb, you normally cannot access your pension until age 60. However, in certain circumstances, you will have the ability to access from 50.
Again, this will be dependent on a number of factors along with the scheme type. As a general note, you will likely be able to access a lump sum from most pension arrangements. If you are unsure, it is never a bad idea to review your pension.
25% of the value of your policy. You are entitled to take 25% of your pension benefit tax-free up to a lifetime limit of €200,000. The next €300,000 will be taxed at 20%. Any remaining balance will be taxed at your marginal rate and liable to USC.
Most pension benefits will be inheritable. However, it will depend on the scheme type and the relationship of the beneficiary when it comes to tax liabilities.