Pension Knowledgebase.

A review of Ireland’s pension funds makes for shocking reading. Only five years earlier funds were performing similarly, but suddenly there is a spread of -3.4% to 20% in returns.

One question that’s commonly asked is “what’s the best PRSA in Ireland?”. While the intention behind the question is understandable (i.e. to decipher which PRSA is going to yield the best results) the question itself is somewhat flawed.

If you’re serious about retirement planning and well versed in the benefits of pension investing then you’ve no doubt come across the advice to “maximise your pension contributions” and “make sure you’re in the right funds”.

Occupational pension schemes are the main way in which most Irish workers are currently engaging with private pensions in Ireland. According to the Central Statistics Office (CSO), nearly 70% of those with private pension coverage in Ireland have occupational pension coverage only.

A Defined Benefit pension scheme is set up by an employer to benefit an employee and represents a fixed payment each year that an employee will receive once they retirement – their payment is defined.

A Defined Contribution (DC) pension scheme is one of the most commonly used pension arrangements. It is based on both the employee and the employer investing in the future pension fund of the employee.

A PRSA is a flexible, individualised pension product that can be used in place of a company pension or sometimes alongside a contributory pension offered by your employer.

A Personal Retirement Bond is a policy that is set up by the trustees of a company pension scheme to allow a member to leave the scheme and take the value of their pension fund with them.

As companies move to reduce the number of members in their Defined Benefit Schemes, new opportunities emerge for individuals who have an interest in moving their company pension to another pension arrangement.

An Approved Retirement Fund (ARF) is a post-retirement financial product that offers the opportunity to reinvest your pension value after retirement and after you draw down the initial tax-free lump sum.

Being ready for retirement is a financial planning question as well as a psychological one. Are you mentally prepared for the shift that will happen in your life when your career ends?

Buying property with your pension is a stable and successful investment option for many people. As we enter retirement and begin to consider our options around how we will use our pension pot into the future, we are presented with several options.

We discuss the full context around why Additional Voluntary Contributions (AVCs) are fundamentally important to your financial security in retirement.