How are you preparing to fund your retirement years? Pensions and retirement planning is one of the most important financial decisions you will make. With people spending up to a quarter of their lives in retirement, ensuring that you have the means to fund this period is essential.

At Barry Walsh Financial Services, we specialise in Pensions and Retirement planning, helping you navigate your options to secure your future. With the State Pension (Contributory) currently set at just €230.30 per week (€11,976 per year), many individuals find it insufficient to maintain their desired lifestyle. In fact, a survey by the Pensions Board found that 80% of the Irish population believe the State Pension will not meet their retirement needs.

We offer a comprehensive range of retirement plans, from large group pension schemes to individual personal pension plans and PRSAs. Whether you are self-employed, an employee, or a business owner, we can help tailor a pension plan that suits your circumstances.

A pension is one of the most tax-efficient ways to save for your retirement. No matter the type of pension you choose, you can benefit from three key tax advantages:

1. Tax Relief on Contributions

Contributions made to your pension benefit from tax relief at your highest rate of tax, subject to certain limits. If you are a PAYE employee, your pension contributions are also relieved from PRSI and the health levy.

2. Tax-Free Growth on Investments

Any growth in your pension fund is exempt from Irish income tax and capital gains tax, ensuring that your savings can accumulate more effectively over time.

3. Tax-Free Lump Sum at Retirement

Many pension plans allow you to withdraw a portion of your savings as a tax-free lump sum upon retirement, helping you access funds when you need them most.

Personal Pension Plan

A Personal Pension is a private pension managed by a life insurance or investment company. It is ideal for individuals who are self-employed or not eligible for an employer-sponsored pension scheme. With a Personal Pension Plan, you can decide how much to contribute and where your funds are invested.

Key Benefits:

• Tax relief on the contributions you make.
• Tax-free growth on your investment.
• A tax-free lump sum available upon retirement.

Executive Pension Plan

An Executive Pension Plan is designed for Company Directors and Business Owners who have a minimum 5% shareholding in their company. This plan allows businesses to contribute to the pension on behalf of the director.

Key Benefits:

• Contributions made by the company are fully offset against corporation tax.
• Employer contributions do not attract Benefit-in-Kind (BIK) tax.
• Employees can make additional voluntary contributions to enhance their pension fund.

Personal Retirement Savings Accounts (PRSAs)

A PRSA is another flexible pension option for individuals who are self-employed or not eligible for an employer-sponsored pension. PRSAs offer similar benefits to Personal Pensions but come with additional flexibility, such as the ability to continue contributions even if you switch employers.

Key Benefits:

• Tax relief on contributions at your highest rate.
• Investment growth is tax-free.
• Can be used to make Additional Voluntary Contributions (AVCs) alongside a company pension.

Pension Transfer Bond (Buy Out Bond)

If you change jobs, keeping track of multiple pensions can be difficult. A Pension Transfer Bond allows you to transfer your pension from a former employer into a single, easily managed bond, ensuring that your retirement savings stay on track.

Key Benefits:

• Retain control over your pension fund.
• Choose where and how your pension is invested.
• Access retirement benefits from the age of 50.

Group Pensions (Occupational Pension Schemes)

A Group Pension is a workplace pension scheme where both employees and employers contribute towards a retirement fund. Employers are legally required to provide access to some form of pension provision, making Group Pensions an effective solution.

Key Benefits:

• Employer contributions boost retirement savings.
• Employees can make Additional Voluntary Contributions (AVCs).
• Tailored investment strategies and lifestyle options for members.

With increasing life expectancy, many individuals will spend 20+ years in retirement. Careful financial planning is essential to ensure your retirement savings last.

Approved Retirement Funds (ARF)

An Approved Retirement Fund (ARF) allows you to invest your retirement savings while maintaining flexibility over how and when you withdraw funds. You can select investments that match your risk profile while keeping access to your capital.

Key Benefits:

• Continued investment growth potential.
• Control over withdrawals to suit your income needs.
• Ability to pass the fund on to your estate.

Approved Retirement Fund with Lifelong Income Benefit

This option provides the security of a guaranteed income for life while retaining access to your investment. It is the first ARF in Ireland that offers a balance between income security and investment control.

Key Benefits:

• Guaranteed income for life in retirement.
• Access to capital when required.
• Potential for income increases through ‘lock-ins’.

You should note that if you do make a discretionary withdrawal, your guaranteed income will reduce.
The minimum payment on death is equal to the higher of the current fund value and the premium paid less all withdrawals made (including any surrender penalties, administration charges and tax).

Annuities (Secure Retirement Income)

An annuity provides a guaranteed income for life in exchange for a lump sum from your pension fund. This option offers security and predictability, ensuring a stable financial future.

Key Benefits:

• Guaranteed fixed income.
• Protection from market fluctuations.
• Options to include benefits for a surviving spouse.

At Barry Walsh Financial Services, we understand that planning for Pensions and Retirement can seem complex. Our expert advisors are committed to providing clear, practical guidance tailored to your personal and financial goals.

Our Approach:

• Personalised Pension Advice: We assess your financial situation and help you choose the most suitable pension plan.
• Tax-Efficient Solutions: We ensure you maximise tax relief benefits and grow your pension fund effectively.
• Long-Term Financial Security: We help you plan for both pre-retirement and post-retirement, ensuring your income needs are met.

Whether you’re starting your pension journey, looking to consolidate existing pensions, or exploring retirement options, we are here to help.

Get Started Today

Take control of your financial future. Contact Barry Walsh Financial Services today for expert advice on Pensions and Retirement planning.