Personal Pension Plan
A Personal Pension Plan is exactly what it sounds like. It is a pension owned by you and taken out in your name. It is a pension that only you can make contributions towards.
A Personal Pension Plan has many benefits such as:
• You decide how much you contribute towards your plan (subject to a minimum contribution).
• The flexibility within the plan allows you to increase or decrease your contribution level as you see fit.
• All the pension providers we work with offer a vast range of funds from which you can choose where your contributions are invested.
• You have the option to retire from age 60.
• You do not have to give up work to avail of your retirement options.
As with other pension products you are limited by Revenue rules as to how much you can contribute towards a Personal Pension Plan. As part of your free consultation with DW Financial, we will work out what is affordable for you and base your plan on these figures.
Is a Personal Pension Plan the correct pension for me?
A Personal Pension Plan is suitable for anyone who is saving for retirement if they meet the following criteria:
• You are self-employed and want to contribute to a pension plan.
• You are an employee and not currently contributing towards a company pension plan.
As part of your free consultation with DW Financial, we will talk you through all aspects of a Personal Pension Plan and see if it is the right option for you.
When saving for retirement it is important to know how you can access your Personal Pension Plan at your chosen retirement age. With a Personal Pension Plan you can do the following:
• Take up to 25% of your fund as a tax free lump sum (subject to a maximum of €200,000).
• Use the balance of your fund to:
A. Purchase an Annuity
B. Invest in an ARF (Approved Retirement Fund) / AMRF (Approved Minimum Retirement Fund)
• Take a taxable lump sum
Note: An Annuity is an income that is guaranteed for your life.
An ARF/AMRF is an investment that allows you to continue to invest in the markets and take a flexible income from the fund.
DW Financial will help you in every aspect of planning for your retirement. When considering your options we look at everything from how much to contribute, what provider to use and which fund to select. We endeavour to help you make the best possible decision to plan for your retirement.
When saving for retirement Revenue have determined how much you can contribute to avail of tax relief. Below is a chart to show how much you can contribute towards your retirement.
|AGE||Maximum Yearly Contribution|
|29 or under||15%*|
* The above are percentages of your net relevant earnings. Your net relevant earnings are subject to a maximum of €115,000.
Note: The above information is correct as at June 2020
As with all pension contributions you can avail of tax relief on your contributions based on the level of tax you currently pay.
i.e. if you contribute €200 per month towards your retirement and pay the lower rate of tax which is currently 20%, it has the following effect:
|Gross Contribution||€200 per month|
|Tax Relief @ 20%||€40 per month|
|Net Cost of Contribution||€160 per month|
However, if you pay the higher rate of tax, which is currently 40%, it has the following effect:
|Gross Contribution||€200 per month|
|Tax Relief @ 40%||€80 per month|
|Net Cost of Contribution||€120 per month|
Warning: Past performance is not a reliable guide to future performance.
Warning: Benefits may be affected by changes in currency exchange rates.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in these products you may lose some or all of the money you invest.