What is a Pension Plan?
A pension plan is a long-term savings strategy that assists people in saving for their retirement tax efficiently. You can fund your retirement plan with regular payments or one-time, lump-sum transfers.
These regular payments and one-time transfers are known as contributions, and they can be used to supplement your retirement income.
How Does a Pension Plan Work?
It is a good idea to save for your retirement so that you do not have to rely solely on the State Pension. You can build your retirement fund by making monthly contributions to a Pension Plan (and lump-sum transfers when possible).
Your fund is put away and invested. Its goal is to grow over time so that when you decide to retire, you’ll have enough money to live on for the rest of your life.
A pension plan is thus a long-term financial tool, and your contributions may be tax-deductible. As a result, the true cost to you may be lower than you think.
Campion Pension Advice - Benefits
Our knowledgeable Financial Advisors can advise you on the best pension plan to suit your circumstances and personal needs.
Someone to Guide You
If your circumstances change (career change, redundancy, retirement) it can be complex to work out what is the best option for you in relation to your pension. Campion Insurance pension experts will be able to talk you through the issues involved and help you make the best decisions.
The Retirement You Deserve
Your Campion Insurance pension expert is qualified to help you with important decisions and recommend the most appropriate course of action for you pre and post-retirement.
Life and Pensions - How We Can Help
We review your existing pension plan
We help you reach your retirement goals
We find the best pension plan to suit your needs
This is the big question. After all those years of contributing to your retirement fund, finally, the time comes to choose your retirement benefits. If you retire at the normal retirement age (usually age 65, depending on your plan rules), the pension fund you have built up over the years may provide the following options.
- Cash lump sum and/or
- Annuity and/or
- Approved Retirement Fund (ARF)
An annuity is a contract with a life assurance company that will pay you a regular pension income for the rest of your life in return for you paying them a lump sum when you retire. The amount of pension income (annuity) you receive will depend on many factors such as the size of the lump sum, annuity rates at the time, your age, whether it is payable for a set period and/or includes a dependant’s pension and state of health.
An Approved Retirement Fund is a personal investment fund where you can keep part or all of your pension invested as a lump sum after retirement. You can withdraw from it regularly to give yourself an income. It also enables you to pass on the remaining value of your fund to your dependents when you die. There are eligibility criteria and not everyone can access the ARF option. When you die, the remaining value of your ARF is available and can be left in your will as part of your estate. The proceeds can also be transferred into an ARF in your spouse’s/civil partner’s name.
If you must retire early due to ill health you may be able to take your pension benefits as soon as that happens. If you are a member of an Occupational Pension Scheme the Trustees of your Scheme will have to sign off on your ill health. If you are a member of a Personal Pension or PRSA your ill health claim will need to be agreed upon by the Life Assurance Company.
There will be limits as to how much you can contribute to your pension plan, depending on the type of plan you have. However, in all cases, there is an overall standard pension fund threshold of €2 million. We recommend that you seek professional financial advice if you wish to maximise the value of your pension fund before retirement.
Normally your pension will cease on your death unless you have purchased a pension which is payable for a minimum period even in the event of death.
Yes, Pension payments are subject to income tax at your marginal rate and USC deductions under the PAYE system. PRSI (up to age 66) may also apply. Your insurance company will make these deductions at source based on your rate of income tax and will remit them to the Revenue Commissioners on your behalf.
Not necessarily, you may be able to purchase your pension from any provider. You should check if there is an “open market” option available to you and if so, speak to your Independent Financial Adviser.
Why Choose Campion for Pension Advice?
35+ years experience
11 offices throughout the country
Winner of the Deloitte Best Managed Companies for over 10 years
High customer retention rates
At Campion Insurance, we don’t take your future lightly. We know just how important securing retirement is for our customers. That’s why they are always at the centre of everything we do.
Each and every customer is dealt with in a personalised way. We don’t offer cookie-cutter pension advice as no two situations are exactly the same.
Choosing Campion Insurance for pension advice means choosing a provider that takes YOU into account every step of the way. Providing effortless, yet detailed guidance is what we strive for.
As your Financial Broker, we’ll discuss the best way of funding your retirement. For many, that will be the traditional annuity route i.e., income for life. Others may wish to explore post-retirement investment through Approved Retirement Funds (ARFs). Either way, your Campion Insurance pension expert will help you make the right choice.
Our expert team can review your existing plan or create an entirely new one, based on your individual circumstances and goals. Pension advice made easy.Get in touch
Get in Touch
Contact one of our local financial advisors on 0818 297 600 to discuss your options.
Alternatively, request a call back and one of our advisors will be in touch