An approved pension plan is a tax-efficient way to try and provide a good income in old age and financial security for your dependants in the event of your death. 

  

Any contributions by your company (subject to certain limits) into your pension plan are also allowable as a trading expense, thus generating a Corporation Tax saving. Perhaps more importantly, any such contributions invested by your company for your benefit are not subject to Benefit In Kind tax. 

  

A pension plan is also ring-fenced from company assets and is generally protected from the company's creditors.  

  

Another major tax advantage of investing through a pension fund is that approved pension funds generally pay no tax on investment income or capital gains. Dividends are re-invested gross of tax, and the fund grows free of Dividend Withholding Tax and Capital Gains Tax obligations - though pension benefits paid in retirement are subject to income tax & other levies.

By following these steps, you can create a comprehensive retirement plan that supports your financial goals and desired lifestyle:

  

1. Where are you now?

List all of your assets and liabilities. Review your income sources whether than is from employment, property, investments, or anything else. 

  

2. Define your retirement goals & calculate your retirement needs

What age would you like to retire? What sort of lifestyle do you want in retirement - do you want to travel or engage in expensive hobbies?

  

What will your retirement cost? What expenses and liabilities do you need to clear before retirement? Have you planned for long-term care or unforeseen costs?

  

3. Develop a savings & investment plan

Are you maximising your pension? Have you collated details of older pensions from previous employments? Are you aware how and when they can be drawn? What other assets can you build up for retirement?

  

Is your existing  portfolio suitably invested for your retirement age goal? Are you familiar with tax reliefs and structures that can help you withdraw money from your business?

  

4. Contingency planning

Are you prepared if something goes wrong? Do you have a plan in place if you suffer a serious illness, and are your dependants protected if you die? Make sure you have an up-to-date will and legacy plan. 

  

5. Regularly review and adjust

Make sure you are reviewing and adjusting your retirement plan as needed, and at least annually. Keep informed about changes in retirement laws and economic conditions, and be sure to work with professionals to ensure your plan remains effective.

The best way to prepare for auto-enrolment is to engage with a financial advisor now and understand what is expected of you as an employer. Auto enrolment is a progressing initiative and the best way to stay on top of it is by getting frequent updates from your financial advisor. 

  

The timelines for auto-enrolment have frequently changed in the past and may do so again. It's vital to stay up to date with your pension advisor and understand what your obligations will be to your employees.

Yes, absolutely. If your business is generating excess funds there are many reasons to consider investing through your company: 

  

Investment choice: through one of Irish Life's investment products, you will have access to a wide range of funds, from cash-and-bond style funds to a more balanced multi-asset fund, offering exposure to equities, property, and other alternative asset classes. 

  

Tax on income: company investments have lower taxes on growth. Profit of any withdrawals is subject to exit tax at 25%, considerably lower than the 41% tax paid by individuals when investing in managed funds. A 1% government levy applies to any amount invested.

The very first step is to ensure you have a Will (and Enduring Power of Attorney) in place and that it is updated regularly. It is extremely important that you set out your intentions for your estate, so that it can then be structured in the most tax-efficient way.

  

Our team can advise you on all aspects of business protection as a business owner/director. These plans will ensure security for your company and peace of mind for your dependents in the most tax-efficient way. 

  

We can also advise on planning strategies for Inheritance Tax. Current Irish  inheritance laws can feel restrictive, but there are many tax-efficient opportunities for passing on wealth.  

  

Trusts are an ideal means of providing clarity and control as to who benefits from your wealth:

  

1. There are no delays in waiting for a Grant of Probate or Letters of Administration.
2. The proceeds of a plan written under trust are protected from the individual's creditors. 
3. In the case of business protection arrangements and Inheritance Tax planning, it ensures the correct tax treatment of the plan proceeds.