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}

 

What is a Retirement Planning Review?

 In preparing a retirement planning review for you, our qualified experts will help you to take a look at where you are now,

and where you want to be when you retire.

It is not just about the money for your pension.

It helps you to think about the type of lifestyle you wish to lead when you retire.

Retirement involves change.

This process helps you prepare for that change in a positive way.

 What is your current position?

 We will help draw up an accurate summary of your current assets and liabilities.

What plans have you for eliminating those liabilities before you retire?

How can you best arrange your assets so as to maximise the return on your pension?

How can you make best use of tax allowances?

What will be your future position?

What will be a comfortable retirement income?

Any major works planned or due in the future?

Do you intend to travel?

What hobbies will you pursue?

How will you fund your future lifestyle?

How will you achieve your plans for the future?

Having examined where you are and where you want to be,

our experienced, qualified experts will outline for you the steps which

you need to take in order to achieve your goals.

That is one of the best ways to ensure that your future is bright.

Once you have a plan, you can then adjust your finances early,

in order to achieve the result you desire.

Without a plan, you may find yourself approaching retirement and having to set aside large amounts of income in order to build up your retirement fund.

The sooner you start, the less pressure you are under.

Saving a small amount regularly over a large number of years is always easier than saving a large amount over a small number of years.

How do I arrange a retirement planning review?

Just click on the button, fill in the details, hit the submit button and we will contact you at a convenient time to arrange the review.

Remember, the sooner you start, the more money you save, so start today.

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Section 72 Life Assurance

The term Section 72 is often used to describe a protection policy arranged for the specific purpose of providing funds on death to pay inheritance tax likely to arise from the death of the policyholder. Any type of protection policy can be used for this purpose usually non profit or unit linked whole of life policies.

The proceeds of policies arranged under Section 72, are exempt from Inheritance Tax, to the extent that the proceeds are used to pay Inheritance Tax, arising from an inheritance provided by the deceased policyholder.

Most Section 72 policies are effected by a married couple on a joint life last survivor basis, where the policy covers two lives assured and the sum assured becomes payable on the death of the last to die. As there is no Inheritance Tax between spouses, an Inheritance Tax liability would not arise in these cases until the death of the last of the two lives assured to die.{KomentoDisable}

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 An AVC is a short name for and Additional Voluntary Contribution, which is a means by which a member of an occupational pension scheme can increase of top up their employer’s occupational pension scheme benefits, within Revenue limits, at their own expense.

Who can take out an AVC?

An individual can pay an AVC if:

• They are an employee

• They are a member of their employer’s occupational pension scheme, and

• Their employer provides a facility for members of the scheme to pay AVC’s

Structure

AVCs will be either

• Defined Contribution: benefits provided by the AVC are those which can be secured by the accumulated vale of AVCs paid by the member.

• Defined Benefit: defined level of retirement benefit is promised for a particular level of AVC.

Different ways to pay AVCs

AVC’s may be structured in one of three ways:

• As an AVC to the employer’s occupational pension scheme itself. Or

• As an AVC to a separate associated AVC occupational pension scheme established by the employer: this will usually be a group AVC scheme

• As an AVC to a stand alone PRSA

Taking AVC benefits

AVC benefits must be taken at the same time as the individual takes benefits from the employer’s main occupational pension scheme. {KomentoDisable}

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 What is an annuity?

An annuity is a guaranteed lump sum for the rest of your life.

Many people use the proceeds of their pension to purchase an annuity.

This then provides their pension income.

If you are a member of a large defined benefit scheme, it is quite possible that an annuity will not be bought

You do not have to take the annuity offered by your existing pension company.

Annuity rates vary between companies so you need to check which one will give you the best deal.

This can be a valuable opportunity to increase the value of your retirement income.

When should I plan for an annuity?

You should plan for your retirement well in advance. Don't wait until you are about to retire. Look at your pension value and work out how much it would provide currently. Will this be enough to provide an income when you retire, taking into account the effects of inflation ? You may need to decide whether or not to set aside more funds for your retirement income. Try our pension gap calculator.

 How do I choose the best annuity?

 There is a wide choice of annuities available on the Irish market.

You should talk to one of our qualified advisers for advice on choosing the right one for you.

 What should I do next?

 It is important to get your pension provisions right.

 It is a good idea to get expert help,so talk to us today.

 Use the call me back button. {KomentoDisable} or telephone 1890 666 666

Or avail of the get a quote button to start the consultation process, and start making use of the tax saving opportunities today.