A Small Self-Administered Scheme is also known as Self-Administered Pension Scheme (SAPS) or Self-Directed Trust. It is useful for both directors and employees. It has greater flexibility and gives you more control over the investments and costs of your pension wealth planning. It is approved by the Revenue Commissioners and is an excellent vehicle for maximising the tax efficiency of your pension planning.

What are the benefits of setting up a small self administered pension scheme?

There are a number of benefits associated with SAPS.

Tax efficient.

Employer contributions (within Revenue limits) are allowable as a deduction against Corporation Tax. They are also not treated as a benefit in kind for the scheme member. This is in contrast to a wage increase in a similar amount, which would attract an income tax liability for the employee.

The employee's contributions to the scheme also attracts income tax relief.

The growth of a SAPS is tax free. Currently a SAPS is exempt from, Income Tax, DIRT, Capital Gains Tax in Ireland.

Control

You can control the choice of assets your SAPS invests in, subject to revenue requirements.

You also have control over the level of risk you are willing to take. This gives you great flexibility when it comes to taking advantage of any investment opportunity which may arise.

The above areas of control mean that you can also know the level of costs associated with the SAPS. These costs are also tax deductible for the company.

You can control the amount of contributions into your scheme.

It is a great way to move assets into a pension vehicle.

It is a great estate planning tool.

What happens if I die before retirement?

The value of your SAPS at the time of your death is used to provide benefits for your next of kin. A lump sum of up to four times your salary can be paid to your estate tax free. If there are funds remaining after this payout, then an annual income for dependants can be purchased with the surplus.

What is the difference between a SAPS and an ordinary pension?

The main difference is that instead of giving your contributions to an insurance company to invest on your behalf, you invest the money yourself, with the help of a pensioneer trustee, who must be Revenue Approved. We can help with all the details of setting up the scheme so that it meets these requirements. We work with a number of such trustees, who would be available for your self administered pension scheme. The revenue have placed some restrictions on how you can invest the pension funds. 

Where can I get independent qualified advice on SAPS in Ireland?

Our qualified experienced experts can help you to decide if a Self-Administered Pension Scheme is suitable for you. We will advise on how to set it up and how best to maximise the growth potential of the scheme. We offer a complete Pension Service to employers in Ireland. Contact us today for a Free, no obligation, consultation. Telephone 1890 666 666 or use the blue call me back button. {KomentoDisable}

 

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Unit Linked Savings

A Unit linked savings plan is a life assurance policy to which the policyholder pays a regular premium usually monthly, which notionally buys units in one or more unit funds operated by the life company. The policyholder may encash these units at some stage in the future, to provide a capital sum to meet some financial need.

Purchasing units

As each regular premium is paid into the plan, it purchases units of the life company’s unit fund at the Offer price. As the number of units attaching to he plan increases so does the encashment vale of the pan therefore building up a capital sum.

Savings term

Most unit linked plans do not have a fixed savings term. Most plans are open ended- can encash the plan at any time. However, Life assurance savings plans are not suitable for short term savings and the normal recommended minimum savings term is usually 10 years. This is because of the charges deducted from the plan at the outset and the fact that the premiums are usually invested, through the unit fund, in stocks and shares which can fluctuate in value.

Encashment Value

The encashment value at any time is usually calculated as:

No of Units * Bid price

Life Cover

 A unit linked savings plan issued by a life assurance company is a life assurance policy; it must provide some death benefit. I.e.

• A specified level of cover or

• The encashment value of the plan at the date of death {KomentoDisable}

Guaranteed Bonds

This is a single premium whole of life policy which provides:

• A guaranteed return of the capital invested at the end of a specified term, usually 5 years+ and

• A guaranteed level of capital growth at the end of the term, to which exit tax will be applied.

So if you want to maximise capital growth and wish to defer the return until the end of the policy term you should consider a Guaranteed Growth Bond.

 Early encashment

 Guaranteed Bonds are designed to provide a guaranteed return over a fixed term, usually 3 or 5 years, either in the form of a regular payment or as capital growth. No guarantee is given on encashment prior to the maturity date of the policy, and as such early encashment is usually subject to a penalty.

 Returns

 The returns offered by Guaranteed Bonds at any time will be strongly influenced by the level of interest rates ruling on short dated Government Bonds.

The investment must be maintained for the full term, in order to obtain the full guaranteed return promised.Access to the investment during the term of the bond is on unguaranteed terms and could involve a loss for the investor.{KomentoDisable}

What should I do in order to find out what is the best way to maximise the return on my investment?

As there is such a wide range of investment products available, you should talk to one of our qualified, experienced experts.

They will review all of your options and help you choose the one that best suits your requirements.

Many investment funds are only available for a short period, so you should act now to avail of the best opportunities.

Use the quote button (above)

or telephone 1890 666 666

With Profit Bonds

A with profit whole of life policy is a form of traditional with profit which provides a guaranteed sum assured payable on death whenever that occurs, in return for a fixed premium. The premium may be payable throughout life or may cease at a specified age i.e. 65.

The life company actuary works out the profits of the life company’s with profit fund each year and then decides on the bonus to be added to it with profit policies for that year. There may also be a terminal bonus added on maturity of the policy.

Encashment Value

A with profit whole of life policy acquires a surrender/ encashment value i.e. a cash sum which the life company pays if the policyholder decides to stop paying premiums and terminates the plan. The encashment value gradually builds up over the years.

 At mypremium.ie we can choose from a huge range of Product Providers to tailor the best plan to meet your specific needs. {KomentoDisable}

Financial Review

A Financial Review is a full check up of all your financial outgoings the purpose of which is to ensure that you are spending no more than necessary and getting the best value for your money. Your life protection, serious illness, income protection, retirement provision, savings both short and long term will be accessed and you will be provided with a full report of the findings.

What documents do I need in order to avail of a Financial Review?

Any existing financial documents such as bank statements, mortgage statements, life protection policies, car and home insurance policy documents together with any insurance documents.

How much will it cost me?

Not having a Financial Review could cost you thousands. Most reviews lead to substantial savings. Your first appointment is FREE and a detailed account will be provided to you at this meeting.

How long will it take?

Your first meeting will take approximately 1 hour and your second should take approximately 45 minutes. Don’t delay –call 1890 666 666 and make your FREE appointment today.{KomentoDisable}

• Stocks and Shares

• Investors you may wish to invest in shares on a quoted company on the Stock Exchange which you hope will yield a good return.

• Assessing Share Values

• The return can come from one or both of the following:

• Dividend Income- if the company pays regular dividends

• Capital Growth- if shares are sold at a higher price than you originally paid

• It should be pointed out that shares are risky investments as in general there is no guaranteed value payable for the shares at any time. Shares are open ended investments whereby they do not have a fixed maturity date.

• Stock Market Prices

• A share quoted on the Stock Exchange will usually have two prices at any time:

• The Bid price- the price at which investors are ‘’bidding’’ to buy the shares

• The Ask price- the price at which holders of the shares are ‘’asking’’ in order to sell the shares

• Information on shares, prices, dividend yields, stockbrokers can be obtained on the Irish Stock Exchange website: www.ise.ie .

• Investing in stocks and shares through mypremium.ie will be on an Execution only basis.{KomentoDisable}