Pensions bring security and financial independence, offering significant opportunity for tax-efficient investing throughout your working life.
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Improvements in life expectancy and greater work flexibility mean people today have a much broader suite of retirement options. Irrespective of when or how you decide to retire, having enough income to maintain the lifestyle you’ve planned for is fundamental.
There’s no rule book that dictates when to start saving for retirement, but one thing’s for certain, the earlier you start, the better the outcome.
A pension is a long-term saving plan that you build up across your working life to create enough income for your retirement. Pensions are one of the most tax-efficient ways to save for retirement, as you can avail of tax relief on your contributions. Your pension can bring security and financial independence, however the options and the rules can be complex. Our team has the knowledge and expertise to help you structure your pension optimally, maximising its potential value.
At Davy, we begin every pension conversation with the basics, such as when and how you would like to retire. This isn't always a straightforward conversation, particularly for business owners where there are succession considerations. We evaluate where you’re at now in relation to your pension savings, taking into account existing pension funds and other assets like business wealth and property. We build your plan from that point forward.
Pre-retirement advice
For those starting out, there are choices around pension structure, contribution levels and preferred investments. Your structural options include Personal Retirement Saving Accounts (PRSA), company pension schemes and retirement bonds. Where you have multiple pensions, including those from overseas, you may want to consider consolidation into a single fund to optimise returns.
For clients who are at retirement, there are multiple decisions around the optimal structure of your retirement fund. There are important tax and inheritance considerations here, with choices depending on factors such as the size of your pension fund, your appetite for risk and related ambition to provide for the next generation.
Managing a retirement fund
There are many tax considerations around pensions, including inheritance, with the Standard Fund Threshold (SFT) among the most important. The SFT is a limit on the total value of pension benefits that a person can accrue tax efficiently. It is currently set at €2m. We work with clients to ensure tax benefits are maximised, while enabling effective retirement investments beyond the threshold value.
Head of Business Performance
Director, Davy Private Clients
Financial Planning Manager
Warning: The value of your investment may go down as well as up. If you invest in this product you may lose some or all of the money you invest. This product may be affected by changes in currency exchange rates. Past performance is not a reliable guide to future performance.
Warning: Please note that Davy does not provide individual tax advice. You should consult your own tax advisor about the rules that apply to you.
