Mercer Oneview Ireland

Private Pensions

If you are a self-employed individual, pensions can make compelling financial sense, both as a way of reducing your tax bill and as a way of saving for retirement.

Types of private pension

Depending on your circumstances, 3 private pension options may be available to you. These are:

  • A Personal Pension
  • A Personal Retirement Savings Account (PRSA)
  • An Executive Pension, which may make sense if you can easily take your self-employed trade or profession and incorporate it as a small company

The table below illustrates the characteristics, advantages and disadvantages of the 3 pension options.

 

PERSONAL PENSIONS

PRSAs

EXECUTIVE PENSION

Incorporation required

No

No

Yes

Fund range

Broad

Can be restricted to PRSA rules

Broad

Charges

Complex

Simple

Complex

Retirement lump sum

25% of fund

25% of fund

May be larger than 25% of fund if service is long. 25% option should always be available.

Flexibility

Cannot be transferred to an executive pension

Can be transferred to an executive pension

Can be transferred to a PRSA if you have under 15 years of pensionable service in your company

Contribution limits

Limited by age and salary

Limited by age and salary

May be increased beyond personal age and salary limits through company contributions

Characteristics, Advantages and Disadvantages of the 3 pension options

Depending on your precise circumstances and preferences, any of the above 3 pension structures may be most suitable for you.Characteristics, Advantages and Disadvantages of the 3 pension options

Personal Pensions (create page and add link)

PRSAs (create page and add link)

Executive Pensions (create page and add link)

For advice either on taking out a private pension, or on your existing private pensions, call Mercer now on 1890 375 375

  • The information contained in this website is for information purposes only. It should not be taken in any way as advice. It should not be relied upon as an offer to purchase or sell any of the products that are discussed.
  • The value of investments can go down as well as up.
  • Investments or products mentioned on this site may or may not be suitable for you.
  • Before investing or purchasing any product you should always seek independent financial advice. Mercer can provide independent financial advice if required.

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