In a nutshell a pension is an investment product just like any other, with a tax efficient pension wrapping. While pensions are necessary to ensure a comfortable retirement their usefulness over and above alternative investment options is because of their tax benefits. Tax relief is available on pension contributions and may also be obtained when drawing down lump sums but it must be noted that often the tax is just deferred, income from pensions in retirement may be taxed.
As pensions by their nature can be considered a tax incentive it makes sense that any pension strategy is undertaken in conjunction with tax advice. There are many different forms a pension may take and as this is such a regulated area – and one the government is closing in on as it seeks to increase returns to the Exchequer – getting up-to-date expert tax advice is very important.
The options available to a PAYE worker with rental income from a second property, or a company director, or a sole trader running a family business, are all very different. As you approach retirement you also need to analyse what your options are in terms of accessing your funds and how to structure extra top-up payments.
We advise on structuring:
- Personal pensions
- Self-administered pensions
- Group pension schemes
- Pensions for company executives
- Personal Retirement Savings Account (PRSA)
- Buy out bonds
- Retirement annuity
- Approved Retirement Fund (ARF)/Approved Minimum Retirement Fund (AMRF)