Personal Pensions

Retirement planning is one of the most important aspects of personal finances. Everybody needs to ask the question how am I going to replace my income during my retirement or when I stop working?
Because of the complexity and the myriad of options, the input of a professional and independent adviser is essential.
Personal Pensions are for self-employed earners, or those who are not in a position to avail of an employer-sponsored pension scheme.

A Personal Pension plan can provide you with the financial security you need when you retire and it allows you to take control over your financial future now.

Contribution options
You have total control over the level of your own contributions and you may increase or decrease them as your financial commitments change. If it is more suitable to your outgoings you can contribute lump sums annually instead of regular premiums and you may even take a break in payments if you need to. Your contributions qualify for tax relief at your highest rate of tax, up to the maximum allowed by the Revenue Commissioners, as the following table indicates;

Tax Relief
Your contributions qualify for tax relief at your highest rate of tax, therefore if you invest €1,000 into a pension plan and you pay tax at 41% then the actual cost to you is reduced to €590.
In addition the growth on your pension fund is not subject to any Capital Gains, Income Tax or Dirt Tax.

Retirement Options
You can avail of your retirement benefits on or after your 50th birthday, wherein you will decide how to use the retirement fund that you have accumulated. You will have a range of different options available to you including taking 25% of your retirement fund as a Tax Free Lump Sum. The balance of the fund can be used to provide you with an income for the remainder of your lifetime.

In the unfortunate event of your death in retirement, the remaining balance of your fund will be returned to your next of kin.

As a result of recent changes in legislation, there is now far greater flexibility in the way that you can take your pension benefits i.e. you have total control over your pension fund.

Investment Options
Pension plans offer a wide range of world class investment options, because everyone has a different needs and views on how they would like to invest their pension payments. Your contributions purchase units in your selected pension funds. These funds are invested in assets such as shares, property, government bonds and cash in various combinations.
The investment performance will depend on the performance of these assets. Pension funds are also known as Exempt funds, as they grow tax free. It is vitally important to obtain independent advice in helping you to make an informed decision as to which Exempt Pension Fund to invest your premium in.
You can choose to invest in high-risk funds with the potential for higher returns, medium-risk funds or lower-risk funds with lower potential for returns.

For information, advice or a quotation please use the contact us form here or email info@ppsdelaney.ie.