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’s
PRSA stands for ‘Personal Retirement Savings Account’. Essentially, a PRSA is a simple and more flexible pension. A PRSA makes it easier to save for retirement because it offers 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.
Personal Pension
In the event that either of the above are not available or are not suitable for you, you may invest in a Personal Pension Plan wherein you still gain the tax benefits directly and also maintain more personal control over the manner in which your contributions are invested.
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: The value of your investment may go down as well as up.