Personal Pension Plan

A Personal Pension Plan is exactly what it sounds like. It’s 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:

• The flexibility within the plan allows you to increase or decrease your contribution level as you see fit.
• If you change employment you don’t have to move the plan.
• You decide how much you contribute towards your plan.
• All the pension providers we work with offer a vast range of funds out of which you can choose where your contributions are invested.
• You have the option to retire from 60.
• You do not have to give up work to encash your fund.

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 you can contribute and what’s affordable for you to contribute 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.

At DW Financial as part of your free consultation during we will talk you through all aspects of a personal pension plan and see if it is the right option for you.

At Retirement

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 25% of your fund as a tax free lumpsum (subject to a maximum of €200,000)

• Invest the balance of your fund in either:

   A. An Annuity
   B. An ARF (Approved Retirement Fund) / AMRF (Approved Minimum Retirement Fund)

• Take a taxable lump sum

At DW Financial we will help you in every aspect of planning for your retirement, when considering your options such as how much to contribute, what provider to use and which fund to select we find that examples can help you in your decision.

Pension Contributions:

When saving for retirement there is a very defined was of seeing how much revenue say you can contribute towards your retirement in order to avail of tax relief. Below is a chart to show how much you can contribute towards your retirement.

AGE Maximum Contribution
29 or under 15%*
30-39 20%*
40-49 25%*
50-54 30%*
55-59 35%*
60+ 40%*

* These are percentages of your net relevant earnings up to €115,000

Tax Relief:

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 affect

Gross Contribution €200 per month
Tax Relief @ 20% €40  per month
Net Cost of Contribution €160 per month

If, however you pay the higher rate of tax, which is currently 40%

Gross Contribution €200 per month
Tax Relief @ 20% €80  per month
Net Cost of Contribution €120 per month