Pensions & Retirement Planning
Our Pension Specialists help sole traders reduce their annual income tax bill and fund their retirement in an efficient manner and invest it wisely.
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At Verity Financial Consultants, we have a dedicated Pensions & Retirement Consultant to help our sole trader / self-employed clients extract, manage and investment funds from their business via pensions.
Tax Relief of 20% or 40% is allowed against your income tax bill. Each October, we help sole traders / self-employed to make last minute pension contributions to reduce their annual income tax due up to self assessment deadline (or ROS online date). We will liaise with your accountant / tax advisor to ensure that this important date is met and your requirements fulfilled.
As a sole trader / self-employed business, you have two options to save for your retirement and reduce your annual income tax bill.
1. Personal Pension Plan (PPP)
A personal pension plan is a long-term investment aimed at helping you set aside money for your retirement. The ultimate value of your pension plan will depend on the contributions you have made over the years and the investment return the funds have achieved in your personal pension plan.
Personal pension plans are designed for people who don’t have a pension scheme through work and who want to set aside money themselves. In particular, a personal pension plan would suit people who are either self-employed or have no pension through their employment.
2. Personal Retirement Savings Account (PRSA)
A PRSA is a private pension plan, separate from the State pension scheme and is available from a range of sources. Anyone can take out a PRSA, regardless of their employment status. It is essentially, a tax-efficient savings account set up by you to save for your retirement.
There are two types of PRSAs available: a standard PRSA and a non-standard PRSA. The key difference between the standard and non-standard PRSA is: Standard PRSAs have a maximum fund management charge of 1% and a maximum contribution charge of 5% but have restrictions on the types of funds you can invest in; non standard PRSAs don’t have limits on charges but may have a wider choice of funds including guaranteed funds which may be attractive to you.