Pension Options for the Self Employed
If you are self employed, you need to start thinking about you're pension options. Legislation around pensions can be complex and the rules about how much you can pay and how much tax you might save can be baffling.
PRSA stands for ‘Personal Retirement Savings Account’. Essentially, a PRSA is a simple and more flexible pension. PRSAs make it easier to save for retirement because they offer value for money, flexibility and convenience. A PRSA pension helps you save for retirement. And if your employment status changes or you move to a new employer, you may be able to bring your PRSA with you.
Additional Voluntary Contributions
If you are in a pension scheme at work and wish to boost your benefits under that scheme, you may want to consider making an AVC. Additional Voluntary Contributions allow you to top up the pension benefits you receive through your normal occupational pension plan. You can either pay an AVC into your main scheme at work or a PRSA.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invested.
Warning: If you invest in this product you will not have access to your money until you chose to retire.
Warning: Income tax relief is not guaranteed. To be eligible to claim income tax relief, your income must be taxable under Schedule E. To claim income tax relief, you can apply to your Inspector of Taxes to adjust your tax credits. Contributions deducted from salary will receive immediate tax relief. Any regular contributions from your employer are deductible by them as a business expense for Corporation Tax purposes in the Company tax year in which contributions are made. Pension income in retirement is subject to income tax at your highest rate on withdrawal, Universal Social Charge (USC), PRSI (if applicable) and any other charges or levies (tax) applicable at the time.