Self-Employed Pension Plan
Protecting your tomorrow – your way
How it Works
If you are self-employed – or if you don’t have a pension scheme through work – this is the route to take for smart retirement planning. You invest in your pension by making regular contributions – either monthly, or whenever you feel you are able to. This money is invested into funds – which you are able to choose based on your retirement goals.
The big drawcard is that you can benefit from a very generous TAX-RELIEF on our contributions – up to as much as 40%. When you retire your Personal Pension Plan pays out your accumulated funds and a portion of this is also TAX-FREE.
- Substantial tax-savings on your contributions – the money you put into your plan is TAX-DEDUCTIBLE. The tax relief you receive depends on your age, and the older you get, the greater your tax relief. This applies to earnings up to a maximum of €115,000
Your Age The amount of your income qualifying for tax relief Under 30 15% 30-39 20% 40-49 25% 50-54 30% 55-59 35% 60 and over 40%
- Cash plus income for life – when you retire (normally between the ages of 60 and 70), the FULL ACCUMULATED VALUE OF YOUR PENSION is paid out to you as retirement benefits: a CASH LUMP SUM plus a monthly income for the rest of your life.
- Boost your investment when you want to – you are free to make extra contributions (Additional Voluntary Contributions) into your plan whenever you want to.
- Tax-free growth – any growth your investment achieves is TAX-FREE, yours to enjoy in retirement
Quick Q and AQ. What happens when I retire? A. In terms of drawing on your funds, you have a number of choices. If you wish to, you can choose to take some of the capital as a cash lump sum – which is TAX-FREE up to the value of €200,000. The rest of the funds can then be used to:
- buy a pension (or annuity) for life – an income paid each month in place of a salary.
- invest in a fund called an Approved Retirement Fund (ARF) or an Approved Minimum Retirement Fund (AMRF). Money can then be withdrawn from this Fund whenever your employee chooses (certain limits apply).
- draw a taxable cash sum.