Self Employeed Retirement Plan by qqs20207


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 Pensions - Personal
 Have you thought about what you're going to do when you've finished working?.......of course you have
 But have you thought about what income you'll need to do all the things that you want to do wh en you retire and
 no longer have a regular salary?
 Think about it this way …you're working now and have the money fro m your salary to pay for your:
       Mortgage
       Rent
       Bills
       Mobile Phone
       Shopping
       Car loan
       Holidays
       Clothes
 …the list is endless
 Of course, by the time you retire some of these items will no longer be relevant – your mortgage may be paid o ff
 and your car loan fin ished but what about your holiday, clothes, entertainment and all the other things that make
 life worthwhile?
 How will you pay for them when you no longer have a salary coming in?
 So whether you are self-emp loyed, in a job that has no occupational pension scheme or event if you are in a
 pension scheme in your workplace you should take a look at the products on offer to help ensure you enjoy a
 better retirement.

 Please contact Decl an for more details on Pension Pl ans on 087 2316 123 or 01 4908777

                                      FREQUENTLY A SKED QUESTIONS

When shoul d I start contri buti ng to a pension?
As soon as possible! The argu ments for starting your pension as early as possible are overwhelming. The size of
your pension income when you retire is affected by the length of time your money is invested for. Depending on the
return earned by your pension fund, a euro put aside in your mid -twenties can be worth between two and a half and
four and a half t imes a euro put aside in your mid-fift ies.
What type of pension shoul d I take out?
There are a nu mber o f different types of pensions available. A personal pension plan is for self-emp loyed
individuals, workers whose employer does not offer a pension scheme, or fo r workers who do not wish to join their
emp loyer’s scheme, and is entirely funded by the individual. A group pension plan is one that is provided by your
emp loyer. If you are working fo r a co mpany and no pension scheme is in place, your employer may agree to set up
an individual pension for you.
What happens to my pension contri butions shoul d I die before retirement?
If you die before you retire, the current value of your Personal Pension fund will be paid to your estate. Under a
Co mpany Pension, the scheme will normally provide two benefits if you die in service before normal retirement age.
A tax free lu mp su m of up to four t imes your remuneration at the date of death and the scheme may also provide a
spouse's pension of two thirds of the maximu m pension which you would have received if you had retired on
grounds of ill health at the date of your death.
Am I enti tled to the State Ol d Age Pension when I retire even if I take out my own pension?
If you have made the required number of PRSI contributions during your working life then you are entitled to the
State Contributory Old Age Pension. As not all occupations pay full PRSI, you need to check whether or not you
pay full PRSI.
How do I make payments to a pension?
Payments can be made on a monthly, quarterly, half-yearly or annual basis by cheque or direct debit.
I'm a temporary/contract-based worker - should I take out a pension?
This depends on how regular your income is. If your income is regular, we would reco mmend a regular premiu m
plan. You do have the option of a 'premiu m holiday' for periods when you maybe unable to contribute to the plan.
However if you have a very irregular income we would not suggest a regular plan.
How do I clai m tax relief?
If you are in a group pension scheme your pension contribution is taken directly fro m your gross salary (salary
before tax) so it is never taxed. When you take out a Personal Pension you receive a tax cert ificate a fter you start.
You send this to your tax inspector. If you are self-emp loyed, your tax bill will be reduced when you send in your
tax certificate with your annual returns.
If I change empl oyment can I take my pension with me?
If you have been employed by a company, which included you in a pension scheme, and you change employment,
you can transfer the value of this fund to the new scheme with your new employer. Ho wever, if you were prev iously
self employed with a personal pension and moved to a company w ith a pension scheme you can no longer keep
contributing to your personal pension plan.

Your personal pension fund will continue to grow until retirement when you can claim your pension benefits. If you
join a co mpany without a pension scheme in place, you can continue making contributions to a personal pension.
How much can I / should I contribute to my pension?
One of the major benefits of contributing to a pension plan is the tax relief you receive but there are limits to the
level of tax relief you can avail of.
Age Pension contribution
Up to age 30                 15%
Age 30-39                    20%
Age 40-49                    25%
Age 50-54                    30%
Age 55-60                    35%
Age 60+                      40%
These are ext remely generous limits, so you are encouraged to make the maximu m contributions or as close to it as
you can, to avail of the generous tax relief.

Even if you are a member o f an emp loyers' pensions scheme it makes sense to make additional voluntary
contributions (AVC's) to top up your pension. You can make contributions to an AVC of up to 30% of your gross
income (depending on your age) and claim tax relief on this contribution.
Useful sources of information
Revenue Co mmissioners -
Dept. of Social & Family Affaris -
Pensions Board -

Call Declan on 087 2316 123 or 01 4908 777


Email your enquiry to us at

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