The Personal Retirement Bond

The Personal Retirement Bond

What is the Personal Retirement Bond?

A Personal Retirement Bond (PRB) is a single premium pension contract set up by a former member of an employer-sponsored occupational pension scheme for their benefit on leaving the scheme. The value of their fund on leaving the company pension scheme is invested in the PRB in their own name. It is then an individual / personal contract between the holder and the pension provider. On retirement, the holder of the bond can use the proceeds of the PRB to provide their retirement benefits.

You should consult with a Qualified Financial Advisor before considering transferring your former employer’s pension benefits to a PRB. In some instances, you may be better off leaving your benefits as part of your former employer’s pension scheme. If you were a former member of a defined benefit(DB) pension it may be in your interests to leave your benefits in the former pension scheme. It is very important to get independent advice when you leave employment and the options available for your pension benefits.

How Does a Self-invested PRB Work?

As one of only a small number of self-invested Personal Retirement Bond providers in the Irish market, the distinct advantage of our PRB contract is the flexibility of investment options. The holder of an NRFM Self-Invested PRB is not tied to an age/risk-related ‘lifestyle’ investment strategy or a strategy defined by trustees and previous employers. The PRB holder makes his or her own investment decisions and retains control of their retirement fund.

The Newcourt Retirement Fund Managers Limited (NRFM) Self Invested Personal Retirement Bond (PRB) is a contract designed to accept a transfer payment from an Occupational Pension Scheme, including a transfer from a Small Self Administered Pension Scheme (SSAPS).

The NRFM Self Invested PRB is effected in your own name and has the same tax-exempt status as an approved Occupational Pension Scheme. The PRB belongs to you and your previous employer/pension trustees have no further involvement in your pension investment.

Who Can Invest in a PRB?

The Personal Retirement Bond is a great investment in the future. This can be availed by people who fall under the following categories:

  • Clients who have left service with their former employers and who wish to transfer their pension benefits under their occupational pension scheme to this new product
  • Clients looking for the opportunity to manage their own pension funds, without the involvement of an insurance company and also without the involvement of their former employers
  • Clients who already hold an external PRB contract
  • Clients who wish to save for retirement
  • Client who wants to avail of retirement tax wrapper benefits

The Personal Retirement Bond is suitable for clients who are prepared to invest for the long term. If you are one  of those people who can invest in a Personal Retirement Bond, it is an investment that you will make use of effectively in the future.

What are the Advantages of PRB?

  1. You personally own the contract.

Once you have left employment you can transfer your former pension to a PRB in your personal name.  Your former employer is no longer connected to your pension. 

     2. You have early access.

On retirement, the bondholder is entitled to the same options with their fund as they had under their previous employer’s pension scheme. It is usually permissible to retire from a PRB at the age of 50 years and onwards subject to revenue rules

     3. You have a greater investment choice.

As you now personally own the personal retirement bond you can decide where to invest. The personal retirement bond offers a variety of investment options, so you can find an investment that meets your needs. You can choose to invest in stocks, bonds, mutual funds, and more.

     .4. Death Benefit

In the event of your premature death, the full value of your fund is paid tax-free to your spouse or your estate. 

There is a limit (Standard Fund Threshold)  on the maximum fund that can be built upon retirement. This is currently €2,000,000. This figure includes all of your pension funds, including the capital value of any retirement benefits drawn down since 7 December 2005. Where the relevant limit is exceeded, the excess of your pension fund at retirement will be liable to a once-off Income Tax charge at a higher rate of tax.

Why Choose an NRFM Self-Invested Personal Retirement Bond?

There are many reasons to choose the Newcourt Pensioneer Trustees Limited (NRFM) Self-Invested Personal Retirement Bond as your retirement savings plan.

  • The NRFM Self-Invested PRB offers you the opportunity to manage your funds without the involvement of an insurance company.
  • Your funds can be spread across a wide range of allowable investments including:
    1. Deposit Accounts
    2. Direct Property investment (residential or commercial)
    3. Choice of International Investment Managers
    4. Stockbroking firms
    5. Our clients use multiple platforms
    6. Full suite of Insurers investments funds
    7. Private equity
  • The NRFM Self-Invested PRB is designated in your name and provides you with greater flexibility and control in managing your retirement fund.
  • Individual Bank Accounts and Individual Investments Accounts are all set up with Dual Signatories. The Dual Signatories will be the PRB holder and one signature from NRFM.
  • You can transfer assets from an SSAPS in specie to an NRFM Self-Invested PRB.
  • As investment returns are free of both capital gains tax and income tax within certain tax jurisdictions, these investments are extremely tax efficient.
  • You can transfer to another occupational pension scheme later if required.

If you are interested to start with your Personal Retirement Bond (PRB), you need to choose the best PRB provider. NRFM is one of the best PRB providers in the market today. 

NRFM is among the only a handful of providers which offer a complete selection of self-invested pension options. NRFM makes sure that its clients are current with the most current pension laws and provides clients with a broad range of investment options.

Newcourt Retirement Fund Managers Limited (NRFM), with its associated business Newcourt Pensioneer Trustees Limited, specializes in providing self-invested pensions.

Our products offer flexibility and options when it comes to your pension investments. Our dedicated team of administrators makes sure that you’re kept up to date and informed about your retirement funds, and they are always on hand to answer your queries.

When deciding which pension plan is right for you, it is important to seek professional financial advice from a Qualified Financial Advisor to ensure that you are making the best decision for your individual needs

 

Pension Retirement in Ireland

Pension Retirement in Ireland: How to Ease Your Fears of Getting Old

As you age, you may start to worry about retirement. Will you have enough money saved up? How will you live once you stop working? These are valid concerns, but they don’t need to cause anxiety.

In this blog post, we will discuss the benefits of pension retirement in Ireland and how it can help ease your fears of getting old. We will also provide tips on how to save for pension retirement in Ireland and make the most of your golden years!

Why Do People Fear Getting Old?

Gerontophobia, or the fear of aging, is a real phenomenon. It can be caused by many things, including the loss of loved ones, changes in our physical appearance, and the fear of declining health. Whatever the reason, getting old can be scary for some people.

One evident reason why people fear old age because of their inability to work and earn a living. This can be a major source of anxiety for many people. As people grow old, they become more vulnerable to illnesses and diseases that need more financial and emotional support.

For some people, growing old also means losing their independence. They may no longer be able to drive or take care of themselves. This can be a very difficult adjustment for many seniors.

However, there are many benefits to getting older that can help ease your fears.

One of the biggest benefits is that you will have more time to do the things you enjoy. Seniors are often eligible for discounts on travel, entertainment, and other activities. So, even though your income may be reduced, you can still enjoy your life to the fullest.

Another benefit of getting older is that you will have more wisdom and life experience. You can use this knowledge to help others who are going through similar challenges. 

Finally, getting older can give you a sense of peace and contentment especially if you have saved enough money for retirement. After years of working hard, you can finally relax and enjoy the benefits of pension retirement. You’ve earned it!

Why Are Pension Retirement Plans Important as You Grow Old?

You are retired from your job but not from living. There is a chance that you have a fresh set of goals for your life post-retirement. However, you might also wish to continue living your life without having to worry about the cost of living.

By planning for your personal retirement, you can determine the steps to reach your goals in life without financial commitment. A Pension Plan is important because it provides a regular income in retirement. This can help to cover your basic living expenses and allow you to enjoy the benefits of pension retirement.

There are many pension plans available, and it’s important to choose what suits your needs. You should consider how much money you need to live on and how long you want to receive payments. You should also think about how you want to receive your pension payments.

What Are the Available Options for Pension Retirement in Ireland?

If you’re a tax resident and working in Ireland, you’re probably wondering about the benefits of pension retirement and how pension retirement works in Ireland. The good news is that the process is relatively straightforward. The first thing you need to do is speak to a Qualified Financial Advisor who will identify your retirement goals…

Irish State Pension

The Irish government also provides a state pension from age 66. . If you’re eligible, you can receive up to €253  per week. The amount you receive will depend on your age and how much PRSI (Pay-Related Social Insurance) you have paid over the years.

You can apply for the state pension by contacting the Department of Social Protection.

Starting a Pension

You can start saving for your retirement as early as age 18. The sooner you start, the better. This is because your money will have more time to grow. 

You can make contributions to your pension through your employer or personally if you are self-employed.  The government also offers tax relief on these contributions, so it’s worth considering if you’re looking for ways to reduce your tax bill.

Once you reach retirement age, you can start drawing down on your pension. You can choose to take a lump sum and/or an annual pension. The amount you receive will depend on how much money you have saved up.

Why Start a Self-Invested PRSA (SIPRSA)?

With a Self-Invested Pension Security (SIPRSA), you have more control over the way your pension funds are invested. You can pick from a greater variety of investment options which includes bonds, shares, and direct property. It is also possible to make changes to your investment portfolio as your financial circumstances change.

Here are more reasons why SIPRSA is a must-have pension plan  in Ireland:

  • Flexibility: Self-invested PRSA contracts offer clients the broadest range of investments available.
  • Transparency: Fees and charges are clear and there are no entry or exit penalties with PRSA contracts.
  • Control: Clients retain investment control of their PRSA investments and are a signatory on all of their PRSA transactions.
  • Investment Choice: Allowable investments include deposit accounts, foreign currency, stockbroking accounts, property, government bonds, and private equity. You are also not restricted to any provider, so you have one pension contract but can have a number of different investments and providers/structures.
  • Taxation: Investment growth and capital appreciation generated in PRSA contracts are exempt from income tax and capital gains tax.

Your fear of getting old can be greatly reduced by preparing for your pension retirement now. It is important to have that peace of mind that you have a plan and are ready for your future. Your financial advisor and NFRM can help you with that by providing the best pension plan for you and giving you all the information you need to make an informed decision.

Why Choose NRFM in Securing a Pension Retirement in Ireland?

There are many reasons to choose NFRM for your pension retirement needs. We have over 30 years of experience helping people plan for their retirement. We offer a wide range of pension plans and can help you find the one that best suits your needs.

Newcourt Retirement Fund Managers Ltd (NRFM) provides a range of Self Invested products including Approved Retirement Funds (ARFs), Personal Retirement Bonds (PRBs), and Personal Retirement Savings Accounts (PRSAs). It is our goal to provide an opportunity for individuals to manage their own pension funds, without the involvement of an insurance company.

To find out more about the benefits of pension retirement and our services, contact us today. We would be happy to answer any of your questions.

Will Your Retirement Be Enough? How to Make Sure You're Set for the Future with NRFM

Will Your Retirement Be Enough? How to Make Sure You’re Set for the Future with NRFM

Will your retirement be enough to support you in old age? If you’re thinking about this, you’re not alone. Many people are worried that they won’t have enough money saved up to live comfortably in their golden years.

In this blog post, we will discuss some tips for making sure that your retirement savings are on track. We’ll also offer some advice on how to save more money for the future.

How Much Do I Need to Secure Before I Can Retire?

Various formulas can be used to calculate retirement costs, but they’re all rough estimates. A well-known rule is that you’ll require about 80% of the money you’ll need in retirement.
That percentage is based on the fact that some major expenses will decrease in retirement-commuting costs and retirement plan contributions. However, other costs could increase (vacation trips, for instance, and invariably healthcare).

Many retirees say that their expenses during the first few years do not equate to, but often surpass what they paid during their working years. The reason could be that retirees enjoy more leisure activities and spend more money.

Future expenses aren’t easy to estimate. However, the closer to retirement, the more accurate your estimate will probably be about the amount of money you’ll require to support your current level of living or to support a new one. If you take that figure as a starting point, subtract any costs you think will be eliminated at retirement and add new ones. It will give you an estimate of how much you would need to retire.

How Can I Prepare for a Comfortable Retirement?

  1. Start saving early.

If you’re in your early 20s, the idea of retirement appears far away that it doesn’t feel real. It’s one of the most popular reasons people use for not saving enough for retirement.

You won’t make an enormous amount of money when you begin your career, but you have more time than the richer, older people. With time at your disposal, savings for retirement is an exciting and enjoyable prospect.

  1. Invest wisely.

Many people choose to invest in stocks, which can offer the potential for high returns. However, stocks are also risky and can lose value. If you’re not comfortable investing in stocks, other options include bonds and mutual funds. These options tend to be less risky than stocks, but they also have the potential to provide lower returns.

If you’re worried about having enough money saved for retirement, there are steps to ease your fears. Start saving early and invest wisely to ensure a comfortable retirement. With planning and effort, you can rest assured knowing that you’re prepared for the future.

  1. Secure a Pension Retirement Plan

A pension is a retirement savings plan that provides you with a regular income after you retire. If you have a pension, you (and your employer, if it’s a workplace pension) make regular payments into the plan. When you retire, you start to receive payments from the pension fund.

If you’re worried about having enough money saved for retirement, a pension can give you peace of mind. Pensions provide a guaranteed income for life, so you’ll know exactly how much money you’ll have each month. Be sure to understand how your pension works before you retire so you can make the most of this retirement savings option.

In Ireland, Personal Retirement Savings Account (PRSA) is one of the pension retirement plans that is preferred by the majority.

What is a PRSA?

The Personal Retirement Savings Account (PRSA) is a savings contract for the long term with tax-free tax reliefs that are available to anyone who is under the age of 75. It was created to serve as a tool for pre-retirement allowing people to save their retirement funds flexibly.

PRSA Pension is retirement savings account that you can use when you retire anytime between 60 to 75. You’re entitled to the lump sum of 25% (with your first €200,000 being tax-free, and the following €300,000 taxed according to the standard tax rate currently at 20%).

If you’re not satisfied, you have the option of selecting any of the following:

  1.  ARF (Approved Retirement Fund)  It’s your pension fund, and you must earn a salary each year. Every penny you earn is tax-deductible directly at the source.
  2. PRSA Post-retirement  You may keep the PRSA Pension Retirement benefits post-retirement. PRSA (Vested PRSA). It is similar to the Approved Retirement Fund above.
  3. AnnuityYou can buy a lifetime income from any insurance company. The amount you will receive will be based on your age and long-term interest rates.
  4. A PRSA Taxable PRSA Lump sum  You may also choose to take the balance of your pension subject to taxation as income.

Can I Afford to Take Early Retirement With PRSA?

Under the PRSA arrangement, early retirement from employment is possible at 50. The majority of pension plans in the private sector allow members to retire earlier in certain situations. However, the benefits will likely be less than what you would receive at the normal retirement age.

However, you may have the option to take your benefits as a lump sum rather than an income during your early retirement. If you choose to do this, you’ll need to pay taxes on the lump sum.

When it comes to retirement, you want to make sure that you have enough money saved to support yourself. Several retirement savings options are available with their advantages and disadvantages. Be sure to do your research so you can choose the best for your needs.

How Can I Make My Retirement Income Grow Over Time With PRSA?

There are several ways to make your retirement income grow over time. One way is to start saving early and invest wisely. Another way is to choose a retirement savings option that provides tax-free growth, like a PRSA.

Like other personal pensions, your PRSA is an investment account that provides for your retirement. It means that the value of your PRSA can increase or decrease depending on the performance of your PRSA’s investment funds.

Your PRSA value depends on how much you and your employer contribute and how long you leave the money in the account. The earlier you start saving, the longer your money has to grow.
You can make voluntary contributions to top up your PRSA at any time. These are called Additional Voluntary Contributions (AVCs).

You may also be able to use your AVCs to buy an annuity, which is an insurance product that pays you a regular income for life.

Seek Professional Financial Advice

Making sure you have enough since retirement is critical, but it can be hard to know if you’re on track. One way to know where you stand is to seek professional financial advice.

If you’re looking to begin your Personal Retirement Savings Account, it is important to pick the right company. The NRFM is among the top PRSA providers available in Ireland.
NRFM is one of few providers that offer a full range of self-invested retirement options. NRFM ensures that its customers are up-to-date with the latest pension laws and provides customers with various investment choices.

Newcourt Retirement Fund Managers Limited (NRFM), with its associated Newcourt Pensioneer Trustees Limited, is a specialist in self-invested pensions.

Our products provide flexibility and choices in your pension investment. Our experienced team of administrators ensures that you are always up-to-date, informed on your retirement savings, and ready to help with any questions.

With decades of experience, we can assist you in growing your retirement savings. Call us today and get us involved in helping you plan your retirement.

Self-Invested Pensions for the Self-Employed in Ireland

Self-Invested Pensions for the Self-Employed in Ireland

There are a lot of risks to being self-employed. There are a lot of benefits to it, but one of the downsides is that you have to take care of your own pension. This can be daunting, but it doesn’t have to be!

In this blog post, we will discuss self-invested pensions for the self-employed in Ireland. We will talk about what they are, how they work, and why they are a great option for those who are self-employed. We will also provide some tips on how to get started with a self-invested pension plan.

What Are Self-invested Pensions and Why Should the Self-employed Consider Them?

Pensioners who have amassed funds over time are considering the places where their pension funds are put and the costs that are associated with the investments.

Many are taking the decision to have more control over their retirement plan in the coming years. Over the past ten years, we have seen an increasing trend of self-employed corporate directors/senior executives, as well as retired people, to self-invested pensions.

The Benefits of a Self-invested Pension for the Self-employed

Self-invested pensions permit them to achieve this in a cost-effective way, however, self-invested pensions aren’t an option for all. This type of pension falls under the rules of revenue on pension investing and is not limited to the investment requirements of any particular service supplier and/or Insurance Company.

They are a great option for those who are self-employed because they offer a lot of flexibility and control. With a self-invested pension, you can choose how your money is invested. You can also choose how much you want to contribute to your pension each year.

What Are the Types of Self-invested Pensions?

Self-employed people are offered two primary choices regarding pensions:

  • Personal Pension Plan (PPP)
  • Personal Retirement Savings Program (PRSA)

Personal Pensions or Retirement Annuity Contracts (RACs) were traditionally the most preferred option for self-employed people who want to save for retirement due to the numerous advantages the product provides like the more diverse range of investment options, and possibly lower costs and also for self-employed persons have a more varied income (discuss in a future post).

This is a privately owned pension, which is held in your name. It is offered by a life insurance company to which you can contribute a % of your earnings and benefit from tax relief at your marginal rate. Depending on your age you can contribute between 15% and 40% of your earnings, to maximum earnings of €115,000.

This plan could generate a cash amount due to you upon retirement, in exchange for the contributions you make to the plan (these are either periodic or one-time contributions).

Personal Retirement Savings Accounts (PRSA) are similar to personal pension plans and were first introduced in 2002. They are basically a long-term savings contract with substantial tax reliefs available to everyone under age 75. It was designed principally to be a pre-retirement tool that allows individuals to plan their retirement savings flexibly.

A PRSA Pension is retirement savings account that you can access when you retire, at any point between 60 and 75. You are entitled to a 25% lump sum (with the first €200,000 tax-free and the next €300,000 taxed at the standard rate of tax, currently 20%).

When deciding which pension plan is right for you, it is important to seek professional financial advice from a Qualified Financial Advisor to ensure that you are making the best decision for your individual needs.

 

 

PRSA Pension Retirement Options in Ireland What You Need to Know

PRSA Pension Retirement Options in Ireland: What You Need to Know

When it comes to PRSA pension retirement options in Ireland, there are a few things you need to know.

First of all, PRSAs are one of the best ways to save for retirement. They offer a wide range of investment options, and you can contribute as much or as little as you want. In this article, we will discuss the different PRSA pension retirement options available in Ireland, and help you decide which is right for you.

What Are the PRSA Pension Retirement Options in Ireland and What Do They Entail?

The Personal Retirement Savings Account (PRSA) is basically a long-term savings contract with substantial tax reliefs available to everyone under age 75. It was designed principally to be a pre-retirement tool that allows individuals to plan their retirement savings flexibly.

A PRSA Pension is retirement savings account that you can access when you retire, at any point between 60 and 75. You are entitled to a 25% lump sum (with the first €200,000 tax-free and the next €300,000 taxed at the standard rate of tax, currently 20%).

For the remainder, you have the option of choosing one of the following choices:

  • ARF (Approved Retirement Fund)

This is your pension fund and you are required to take an income every year. Any income you take is subject to tax at source.

  • PRSA Post-retirement 

You can retain your PRSA Pension Retirement in the form of post-retirement. PRSA (Vested PRSA).  This is similar to the Approved Retirement Fund, above.

  • Annuity

You can purchase a lifetime income from one of the insurance companies. The rate you receive will be based on your age and long term interest rates

  • A Taxable PRSA Lump sum

You can also take the remaining balance of your pension which will be taxed as income.

How Can You Choose the Best Option for Your Needs?

The PRSA Pension Retirement offers a great deal of flexibility to the saver. You must understand all of the options available to you before making a decision. If you are not sure which option is best for you, seek professional advice from a financial advisor.

When you have decided how you want to receive your PRSA benefits, you need to contact the PRSA retirement provider and fill out the necessary paperwork. You will also need to provide proof of your age, identity, and confirm if you have any other pension benefits.

What Factors Should You Consider When Making Your Decision?

There are a few factors you should consider when deciding how to receive your PRSA Pension Retirement benefits. First, think about how much income you will need in retirement. If you plan to retire early or have other sources of income.  You should also consider your health and life expectancy. If you think you may need your PRSA retirement benefits for a long time, an annuity may be a good option. It can provide a lifetime of income, even if you live to be 100!

Deciding how to receive your PRSA benefits is an important one. Be sure to consider all of your options and seek professional advice before you make a decision.

What Is the Retirement Age Under PRSA?

You are allowed to take your benefits once you reach age 60 and before age 75. If you are a member of your employer’s PRSA pension scheme then it is possible to start taking benefits earlier, for instance, when you leave employment after age 50. However, the benefits you will receive are likely to be less than what they would be when you reach the normal retirement age.

Can I Cash in My PRSA Pension Early?

In Ireland, accessing your pension fund before your nominated retirement age isn’t recommended and is usually only permitted in the event of a diagnosis of illness like that brought on by a chronic disability. If you are in this situation and you’re suffering from a serious illness, you may be able to access your pension fund. 

How Does Retiring With a PRSA Pension Plan Impact Your Life?

There are a few ways that retiring with a PRSA Pension Retirement plan can impact your life. First, you will need to decide how you want to receive your PRSA retirement benefits. You can take a lump-sum payment, an annuity, or a combination of both.

Your PRSA Pension Retirement Fund, when you retire, will comprise the total amount of contributions paid to you (and any employer contributions, should you have one) as well as the investment return that you earn from those contributions, less the PRSA fees charged by the provider.

This amount will be a great help upon retirement because it will supplement your state pension and any other income you might have. Newcourt Retirement Fund Managers Limited believes that PRSA retirement pensions are a great way to ensure a comfortable retirement!

Contact your financial advisor today to discuss your PRSA Retirement Options in Ireland!

Retirement Fund Ireland - Investing in your Future

Retirement Fund Ireland – Investing in ARF for your Future

When it comes to Retirement Fund Ireland, one of the best options for investors is an ARF or Approved Retirement Fund. This type of fund has been specifically designed for those looking to invest in their future and secure a comfortable retirement. If you’re interested in learning more about Retirement Funds Ireland and ARFs, we will discuss what these funds are, how they work, and why they might be a good option for you.

What is an Approved Retirement Fund?

ARF is an Approved Retirement Fund that is regulated by the Irish government. These funds under Retirement Funds Ireland were designed for those looking to invest in their future and secure a comfortable retirement. 

The Approved Retirement Fund (ARF) is an individual retirement fund in which it is possible to keep the pension funds in a lump sum following retirement. You can frequently take money out of it to provide yourself with an income. Any funds left in your account after your death may be given to your next relatives.

The Finance Act 1999 introduced choice in retirement, allowing Retirees to invest in a range of retirement fund investments via an approved (Minimum) Retirement Fund (A(M)RF). Before 1999, options during retirement were limited to purchasing a pension, which was payable for the rest of their lives (an annuity).

How Does an ARF work?

An ARF is a Retirement Fund in Ireland that gives the Retiree more control over how and when they access their pension. The individual can choose to make withdrawals as and when they please, making it a more flexible option. ARF is a self-invested pension specialized by Newcourt Retirement Fund Managers Limited (NRFM) together with its associated business Newcourt Pensioneer Trustees Limited.

After retirement, following the lump sum tax-free, you can invest the remainder of your pension funds (75%) in an ARF one, which is set up and managed by NRFM. You then become an ARF Holder and have full ownership of the retirement investment fund, from which can draw a regular income.

The income you earn will be subject to tax at the marginal rate plus the universal social cost (and PRSI for those under the age of 66). NRFM is required to deduct tax on income under PAYE rules, which means that the tax deduction is made from the point of origin. You may use your taxes credits or allowances as this source of income if you want.

As of the Finance Act 2006, it is now mandatory for ARF holders to take a portion of their accounts annually as pension income. This is known as an “Imputed Distribution” (i.e. make a draw-down mandatory of the ARF value by the 30th of November every year, pay the income tax and allow you to receive an amount of net revenue).

Who Can Invest in an Arf Account and What Is the Process?

For you to set up an ARF and start your Retirement Fund in Ireland, you must have a pension income of 12,700 per year or have put up a minimum of 63,500 into the form of an Approved Minimum Retirement Fund (AMRF) and/or an annuity. The minimum requirements for an ARF are currently the revenue limit and could change in the near future.

People who are under the following categories can invest in a Self-Invested A(M)RF:

  • Existing A(M)RF holders – both Self Administered A(M)RFs and traditional A(M)RFs with Insurance Companies
  • Personal Retirement Savings Account (PRSA) contract holders
  • Personal Pension and Self Invested Personal Pension contract holders
  • Additional Voluntary Contribution (AVC) contract holders
  • Members of Employer SponsoredDefined contribution pension schemes, including Small SelfAdministered
  • Pension Schemes are subject to certain conditions.
  • The minimum age of entry to an ARF/AMRF is 50 for members of occupational pension schemes and 60 for all 
  • other pension contracts

What Are the Benefits of Investing in ARF?

Investing in ARF which is a retirement fund in Ireland offers you numerous benefits. An ARF gives you greater flexibility in how retirement savings are managed. An ARF lets you keep investing in the market while having the capability to control your retirement fund investment and receive an income that is flexible in retirement.

Aside from this, the Self-Invested A(M)RF gives you the chance to manage your funds without an insurance company.

Your money can be distributed over a variety of investment options that are allowed:

  • Deposit Accounts
  • Direct Property investment (residential or commercial)
  • Choice of International Investment Managers
  • Stockbroking firms
  • Our clients use multiple platforms
  • Full suite of Insurers investments funds
  • Private equity

NMRF holds the A(M)RF assets in trust for investors of the A(M)RF investor. This means that, unlike insured A(M)RFs, we don’t hold the assets on the balance sheets of our clients. Each account is named under the client, and the customer is co-signatory of his or her retirement fund investment(s) and bank accounts.

What Are the Risks of ARF Accounts and How Can They Be Minimized?

If you’ve invested for a long period of years, you might have a good understanding that risk states that your retirement fund investments may decrease in value. The general rule is that higher-risk investments can yield a higher return, whereas low-risk investments typically yield a lower return.

The chance that the capital in your ARF is not able to be used is influenced by three primary aspects:

  • Life Expectancy

Life expectancies rising are certainly an excellent thing and creating a huge strain on the state and pension pots. If you’re thinking about your retirement savings, it’s crucial to be aware of the chance of living beyond the amount you put aside to retire.

  • Inflation

As you age, the inflation rate increases and becomes more of a concern when your income isn’t increasing. This is why you might decide to invest a portion of your retirement funds in order to grow your capital and, consequently your earnings.

  • Income

We all wish to have enough money for a stress-free retirement, however, this is becoming more difficult to attain. That’s why you might want to invest some of your retirement savings in order to generate an income and thus safeguard the amount of your savings.

There are various levels of income offered by the different asset classes. Those that earn more in income might also carry a greater chance of sustaining capital losses. Before you select an income strategy, you have to be confident about the level of risk.

What Is the Importance of Long-term Investing for Retirement Planning?

One of the benefits associated with investing for the long term is the possibility of compounding. When your retirement fund investments generate earnings, these earnings are invested and could earn more. The longer your money is invested, the better the chance of growth and compounding. 

Remember that although compounding, in general, could have a major lasting impact, there will be times when your retirement fund investment isn’t growing. Although, there is no guarantee that compounded investment gains could prove to be much more than your individual contributions.

When you start saving early, such as in a retirement fund in Ireland, you will profit from the benefits of compounding. It allows your savings to generate additional income. In the span of years, compounding could significantly alter the way you save.

An ARF is a Retirement Fund in Ireland that allows you to save for retirement while still giving you access to your money should you need it. It is a long-term retirement fund investment and has the potential to grow over time. Talk to our financial advisors at NMRF to learn more about how an ARF could help you secure your future.

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What is PRSA Pension Ireland

What is PRSA Pension Ireland?

We often associate pension plans with retirement and people give utmost importance to that. This article provides information about PRSA Ireland, which is a personal retirement savings plan for qualifying employers and their employees.

What is PRSA Pension?

PRSAs are a type of personal retirement savings account that was introduced in Ireland in 2002. They offer individuals the opportunity to save for retirement in a tax-efficient way and can be used by both employed and self-employed people. The money in your PRSA can be used to provide an income in retirement, either through a lump sum or an annuity.

A PRSA offers retirement benefits dependent on the number of contributions, or payments, that you’ve paid into as well as the investment returns that you earned on these contributions.

You’re only able to open a PRSA Ireland if you’re an employee of a company that doesn’t have an occupational pension scheme in place. If your employer already has an occupational pension scheme, then you’re not allowed to have a PRSA as well. 

There are two types of PRSAs – Standard and Personal. Standard PRSAs are set up by your employer, and contributions are taken from your salary before tax.  Personal PRSAs can be established by anyone, including self-employed individuals, and contributions are made after income tax has been paid.

Both types of PRSA Pension in Ireland offer the same benefits, it’s just how the contributions are made that differs.

How Does PRSA Pension Work?

A PRSA pension is a personal retirement savings account that you can open with any licensed provider in Ireland. You can contribute to your PRSA pension through payroll deduction, or by making regular payments from your bank account. The money you save in your PRSA pension will grow tax-free, and when you retire, you can use it to provide an income for yourself.

You can choose how you want to invest your PRSA pension, and you can switch investment options at any time. Your provider will give you a range of investment options to choose from, and you can also choose to have your pension invested in a mix of different assets.

When you retire, you can take up to 25% of your PRSA Pension Ireland as a tax-free lump sum. The remainder of your pension will be used to provide you with an income for life. You can take your pension as a regular income, or you can choose to take it in lump sums.

If you have a PRSA pension, you can take your pension benefits with you if you move to another country. You can also use your PRSA Ireland pension to top up your State Pension or to provide an income for your dependents if you die before you retire.

PRSAs are a flexible and tax-efficient way to save for retirement, and they offer you the security of knowing that you will have an income in retirement. If you are self-employed, or if your employer does not offer a pension scheme, a PRSA is an ideal way to save for your retirement.

Who Can Contribute to a PRSA?

Anyone is able to contribute to the PRSA. Contributions are tax-deductible within a set amount but you must be employed in order in order to qualify for tax-free benefits. However, you can contribute to the PRSA regardless of your job situation.

PRSAs are offered to anyone regardless of your position or job status. You are able to take out PRSAs regardless of your employment status. You can have PRSA in the event that you are a casual or part-time employee, a high-paying individual, a self-employed or caregiver, a homemaker or job seeker, a contractor or employer, an employee, or even a partner in an association.

PRSAs are portable personal retirement savings accounts which means they can be moved from one job to another or from one provider to another. It can be opened by anyone who falls into the categories mentioned above. There is no maximum age limit for making contributions to a PRSA Pension Ireland but you must make your first contribution before you reach age 75.

What is the Benefit of a PRSA?

A PRSA pension offers a number of benefits including:

  • Tax relief on your contributions: You can get tax relief on your PRSA pension contributions at your highest rate of income tax.
  • Flexibility: You can make regular or one-off contributions to your PRSA, and you can stop and start contributions at any time.
  • Control: You have control over how your PRSA pension is invested, and you can switch investment options at any time.
  • Tax-free growth: Your PRSA pension funds will grow tax-free.
  • Tax-free income in retirement: When you retire, you can take up to 25% of your PRSA Ireland pension as a tax-free lump sum. The remaining balance can be used to provide an income for life, which is also taxed at your marginal rate of income tax.

What is the Difference Between a PRSA Pension and a Personal Pension?

A PRSA Pension is a personal retirement savings account that is set up and managed by the Irish government. A personal pension is any other type of private pension arrangement.  

The primary distinction between PRSA and personal pension plans is that contributions from employers are able to be paid into PRSA’s but they are not able to be made in personal pension funds. 

Another distinction is that PRSA’s are governed by statutory fees, whereas personal pension plans don’t. Based on the number of contributions, personal pension plans could provide the person with lower costs. PRSA Pension also offers certain tax advantages and protection from creditors, whereas a personal pension does not.

Which Pension Plan Gives the Highest Return?

A Self-Invested PRSA (SIPRSA) gives you more control over how your pension is invested. With a SIPRSA, you can choose from a wider range of investment options, including shares, bonds, and funds. You can also make changes to your investments as your circumstances change.

Newcourt Retirement Fund Managers’ current self-invested customers benefit from the many investment options and flexibility provided in the contracts. Customers prefer this type of personal retirement savings account due to the fact that they believe it provides the highest chance of earning and gives them control over the investment choices they make to invest their retirement funds in.

PRSA Pension Ireland gives hope to people who are already in their prime. This personal retirement savings account assures them that they can ease their minds of worries and give themselves ample rest after striving for a living for so many years.

How Much is the Irish State Pension?

How Much is the Irish State Pension?

When you’ve worked hard for most of your life, don’t you want to ensure that you have the money necessary to maintain your standard of living in retirement? The State pension in Ireland is €253 per week from January 2022 for a person aged 66 or older. Could you live on the State pension alone, and what would your retirement be like?

The Irish state pension is a regular payment made to retired people living in Ireland. It is funded by the government and is designed to help retirees live comfortably in their old age. However, this acts more as a form of subsistence than anything else, due to the low rate. 

This blog post will discuss how much the Irish state pension is and who is eligible for it. We will also talk about some of the benefits of receiving the pension payment. So, if you are wondering how much you can expect to receive from the Irish government when you retire, keep reading!

Types of Irish State Pension?

There are two types of State pension in Ireland: the contributory pension and the non-contributory pension. The contribution is based on your PRSI contributions while working, whereas the non-contributory pension is means-tested. Depending on your circumstances, you may be eligible for one or both types of pensions.

If you are eligible for the contributory pension, you must have paid PRSI for at least 40 years to qualify. If you have not paid PRSI for 40 years, you may still be eligible if you have a certain number of “stamps

If you are eligible for the non-contributory pension, you must meet certain means-testing criteria. This means that your pension will be based on your current income and assets and the incomes and assets of any other people living in your household.

To find out if you are eligible for the State pension, you can contact the Department of Social Protection. You can also visit their website to calculate your “stamp” entitlement.

The State pension is a vital source of income for many people in Ireland, and it can help make retirement more comfortable. It is important to determine if you are eligible for the pension. With this information, you can plan for your future and ensure that you have the money you need to live comfortably in retirement.

Can I Cash My Pension Early?

In Ireland, tax relief for retirement savings is available; therefore, withdrawing funds prematurely is not recommended and is typically only permitted if there’s a compelling reason, such as illness. 

Retirement usually takes place between age 60 and 70, however, if you leave your employer after age 50 then you may be able to access your pension. If you have a personal pension arrangement then you can take your pension benefits from age 60.  If you are permanently unable to return to work due to illness or disability then you may be able to draw your pension at any age.

It’s never too early or late to start planning your pension, which will ensure you have the lifestyle and financial stability you want in your retirement. It’s an important step to take when thinking about retirement, and it’s never too soon or too late to begin planning for it.

How Much Should I Save for my Pension?

People should be saving as much as is feasible in an ideal world, so the more relevant question is, how much can I afford to contribute toward my pension fund each month?

A person must be 66 years old to qualify for the State pension. As a result, early retirement is not an option if you want to live solely on the State pension. It’s also worth noting that the age at which employees can retire from government service has continued to rise over the years.

It would help if you also considered that people would need more money to live on in retirement as people live longer. The average life expectancy in Ireland is now 83 years for men and 86 years for women. This means that you could be retired for 20 years or more.

Your pension fund will need to last you throughout your retirement, so it’s important to ensure that you are saving enough. The amount you need to save will depend on your circumstances, but a good rule of thumb is to aim to have a pension fund worth at least 20 times when you retire.

If you want to retire with a pension of €50,000 per year, you will need a pension fund of approximately €1 million.

Of course, this is an ambitious goal, and not everyone will be able to achieve it, but it is important to try to save as much as you can for your retirement. The earlier you start saving, the more time your money has to grow, and you are more likely you are to achieve your goal.

Like most people, you probably have many questions about your pension. How much is the Irish state pension? How much should I save for my pension? These are all important questions to ask when you’re planning for retirement.

In Ireland, the state pension is currently €253 per week or €13,000 per year. This amount is subject to change each year, so it’s important to keep updated on the latest rates. You can check the Department of Social Protection website or contact your local social welfare office.

It’s never too soon or too late to begin planning for retirement, which will assist you in achieving the lifestyle and financial stability you desire during your golden years.

Did you find this blog post helpful? Let us know in the comments below! And if you’re looking for more information on retirement planning, be sure to speak to your financial advisor today. Thanks for reading!