One of the most complex areas of financial planning is pension provision. Due to the variety of schemes available and to ensure that tax relief is maximised we would recommend that you speak to one of our Qualified Financial Advisors (QFA’s) to clarify the most appropriate option for you.
Personal Pensions/ Personal Retirement Savings Accounts (PRSA)
Generally suitable for the self employed and employees, these are funds held in an individual’s own name. Both regular and once-off premiums can be paid to these plans and contributions qualify for tax relief which is claimed through an individual’s tax return at the end of each financial year. Employers can contribute to PRSAs but cannot pay into personal pensions.
Executive/ Company/ Directors Pension Plans
Generally arranged for company directors and employees, these schemes are paid by employers with employee contributions made by salary deduction. As contributions are made by the employer, the tax relief is deducted at source.
Self-Directed/ Self Administered Pensions
These schemes allow you to manage your pension funds personally. They allow you to invest in a broad range of assets including specific shares, bonds, individual properties and commodities.
Group Pension Schemes
These schemes are arranged by employers on behalf of their employees with any contributions from employees made by salary deduction and contributions qualify for tax relief for both employee and employer.
Normally, either the employer acts as trustee on the scheme or an independent professional trustee is appointed to ensure that the scheme is run in line with the regulations and guidelines set down by the Pensions Board.
Personal Retirement Bonds/ Buy-Out Bonds
This is a pension plan into which you can transfer your pension benefits from a former employer’s company scheme, therefore removing the former employer’s connection with the pension. You would then have the freedom to choose the types of funds you wish to invest in and the provider that you would like to manage your funds.
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