Planning for retirement can be complex and confusing. Southeast Financial Services provide advice, planning and can guide you through the process and help you every step of the way. We will help you answer questions like:
How much do I need to save?
Are pensions even worth it?
How do I get my tax back?
When can I retire?
Personal Pension Plan policies are designed for those who are self-employed or who work in non-pensionable employment, and who wish to save towards a more rewarding retirement. There are no employer contributions made to the pension plan and as the name suggests, the plan is owned by the person who contributes to it. This type of pension product is most suitable for the self employed. Contributions are tax deductible for the individual against net relevant earnings. Retirement can be taken from between 60 to 75 years of age. A PRSA or “personal retirement savings account,” is a pension plan issued to an individual. Contributions can be made to the PRSA by the employer, by the employee or by both. You don’t need to be in employment to have a PRSA, however tax relief will only apply to contributions made from relevant earnings. PRSA’s are most suitable for employees who are not members of an occupational scheme and may also suit the self employed. PRSA’s were designed to be flexible, portable and low cost pension products. An individual can take their PRSA with them when moving jobs. SSAP’s are geared towards the owner director of a limited company. It would be expected that pension contributions would be towards the higher end of the scale. A self administered pension scheme allows the beneficiary of the pension to take complete control of his/her pension investment decisions. The difference with a self-administered scheme is that a pension provider, such as an insurance company, is not used for the provision of the pension structure. Instead, a pension trust is set up and administered by the appointed trustees. Investment flexibility is a key characteristic of SSAP’s. Direct property acquisition is possible. Direct share dealing and bank deposits are common. Typically the share dealing costs through the self-directed arrangements are more efficient, as the life company secures lower trading costs due to a larger volume of business. Currently not available to New Business Members of occupational pension schemes have the ability to make AVCs (additional voluntary contributions) either to their occupational schemes or to an AVC PRSA. As occupational schemes make investment decisions for all of its members, the investment choices (if any) on offer, will be reasonably conservative. If you are a younger member of the scheme, you may wish to look at making your AVC contribution to an AVC PRSA in order to access pension investment funds that you may not be able to access through your occupational scheme. An executive pension is a defined contribution occupational pension plan, issued by a pension provider to an employer, with an employee/director of the company named as the beneficiary of the pension plan. The plan is held by the trustees on behalf of the employee/director. This type of pension can be set up for any employee or director of a limited company but is typically set up for owner directors of small businesses. They can also be set up for senior company employees. Group pension schemes are set up by an employer for the benefit of the employees of a company. Schemes can range in size from two members to thousands of members. The scheme assets are held in trust for the benefit of scheme members. The scheme trustees decide on how the scheme invests accumulated funds. Each scheme is unique as it may have different membership rules and scheme member benefits. Scheme members may have some level of choice of how his / her pension account is invested within the scheme, but the choice is usually limited to funds chosen by the scheme trustees on behalf of the scheme members. If you moved jobs, or left employment and were a member of an occupational pension scheme, you need to think about your options for the pension fund you have built up. A Personal Retirement Bond (PRB), sometimes called a Buy-Out Bond is an option if you want to arrange a transfer of benefits to a personally owned pension plan. When you reach retirement, you can then use your fund to provide retirement benefits. The retirement options available correspond to the rules of the occupational scheme the fund was previously held in. If you die before retirement, we will pay the value of your fund to your estate. A Personal Retirement Bond is personally owned by you. It means you are in the driving seat, allowing you to choose the funds you are invested in.