Self Employment Pension

Take advantage of paying lower tax

If you are like me and don’t particularly enjoy paying tax you will like this!!

If you put €6,000 into a pension this year, under the current taxation system you can reduce your tax bill by 33% of the €6,000, so at the end of the year you will not only have saved the €6,000 into a retirement account but you will have also saved €1,980 in tax. If the fund has done well, you will hopefully have seen your €6,000 increase also!

You have the option to either pay money into a pension monthly or you can make lump sum payments at year end if that suits you better, or you can do both.

Depending on your business, if you think you can manage to make a monthly commitment to a Pension this will smooth out the cost, or if you prefer to wait until year end to see how your business has done, you can pay a lump sum, it really depends on you.

You are limited in the amount you can put into a pension, by your age see below.

Age at your birthday	Limit
Up to 29	15% of net relevant earnings*
30 to 39	20% of net relevant earnings*
40 to 49	25% of net relevant earnings*
50 to 54	30% of net relevant earnings*
55 to 59	35% of net relevant earnings*
60 and over	40% of net relevant earnings*

The older you get, the higher the limit!

Risk levels

If you ask 10 clients to grade themselves on a 1-5, 1 being lowest risk and 5 being highest, the majority will choose a risk level of 2. For this reason it is well worth while talking to us, we can show you how you can manipulate risk to get even higher returns. A pension fund sitting in a very low risk for a 30 year old client, may not be a good idea. Likewise a Pension fund sitting in a high risk fund for someone retiring within a year, may not be a good idea also, however it really depends on the individuals circumstances, again we can help you to make the best decision for you.

Remember that return and risk are related; normally, the higher the potential
return, the higher the potential risk. We can advise you on the options, as you are the expert in what you want, we will simply listen to your views and offer advise.

People are living longer

The Normal Retirement Age (NRA) was 65 years, however the Irish Government extended this to 68 years in 2010, so more than likely you will be working longer and living longer. It is very likely that you will live to retirement age, will be in reasonably good physical shape and will have another 25 to 30 years to live. If this is the case, you will need more money to keep you going and the pension will need to be bigger to enable this to happen.

Who can take out a Personal Pension Plan?

Those in self-employment.
Those in non-pensionable employment.

So if you are a self employed Accountant, a Proprietary (Owner) Company Director or are a self employed tradesman, this is for you.

If you want to be free to do what you want later in life, you need to
make the most of the cash and investments you have now.

Financial Architects will help you to choose the Pension that works for you, we will simplify the process and stay in touch with you, as much as you want. Make an Appointment today.