Retirement Planning & Pensions
We are passionate about working with clients in their working years to build an individual Pension Fund to as close to €2.15m as possible. We are equally passionate about working with those who are already in retirement and are currently drawing down their pension benefits, either by Approved Retirement Fund (ARF) or Annuity.
We believe that the key to a successful (financial) Retirement is to achieve Financial Freedom, to give you the ability to enjoy your twilight years without concern
Funding Your Pension Fund
The most tax-efficient pension size per individual in Ireland is €2.15m. We believe that everybody in their working years should have a target retirement age and pension value
By starting your contributions early, maximising your contributions each year & optimising your investment strategy, everybody should be able to work towards their target pension fund value at a particular age.
For PAYE Employees and non-incorporate self-employed, the pension contribution scope is usually limited to their personal age-based contribution limits. Proprietary Directors however have far more scope by way of Employer contributions for back-service, as well as personal contributions.
Transitioning to Retirement
The 3 years leading up to your Target Retirement Age are extremely important in order to ascertain what your financial position will be in Retirement, so that you can make the most appropriate financial decisions.
The big financial change in moving from working to retirement is the fact that ‘earned income’ gets switched off and instead you become dependent on ‘passive’ income from pensions or personal capital assets.
Mapping out your Capital & Cashflow position is a very worthwhile exercise so that the transition to retirement is as smooth as possible and to ensure that you have sufficient assets & income to live the life you have planned.
Pension Asset Allocation Mix
The Asset Mix of your Pension Fund should never be looked at in isolation. You should always consider the ‘big picture’ at all times and consider non-Pension Assets also.
A Pension fund may actually have a higher or lower risk profile than a client’s stated risk appetite, if the client is happy to consider the investment profile of their pension fund holistically in the context of their non-Pension assets, which may be higher or lower.
For a couple, we believe that the risk level and asset allocation of both Pension funds should be considered jointly.
All of the above reinforces the need for holistic financial planning when it comes to Pensions & any other financial structure an individual or a family have.
Investment Strategy Analysis
We work with who we believe the some of the top Investment Providers & Funds globally in order to maximise our clients’ return while doing our absolute best to minimise their risk.
We believe that one should always have a long-term time horizon with their pension funds, unless of course the pension is due to be drawn down in the next 3 - 5 years. We favour a passive investment style with an active overlay.
The Investment Strategy within a Pension fund can be a lot simpler than personal investing from a tax point of view, as we don’t need to be concerned with the tax-implications of various investment securities, as pension funds do not pay Income Tax, CGT or Exit Tax on growth or income.
