There has been so many changes in the law governing pensions, with ownership of the fund now vested in the individual, and so many advantages in pensions investments, particularly for the self-employed and company directors, that the pensions workshop is certain to be very popular. It will include an analysis of the benefits, risks and potential of different types of pension investment.

The need for professional advice in the changing lergislative world of pensions is self explanatory. It is important to avoid the pitfalls. If you cannot make it into the office, we will bring the service out to you and your workplace. We have a strong mix of clients from the domestic market right through to the corporate market. We keep in touch with you, the client, at intervals which are previously agreed. The very strong client management system in operation guarantees regular contact, review of the portfolio and quality advice.

FINANCE ACT 1999 AND FINANCE BILL 2000

• Those who qualify to benefit under the above are Self Employed and 5%+ Directors
• You can now take 25% of your retirement fund tax free
• This is regardless of age or service and now applies to early retirement
• Two new options available are:
  • Invest in an Approved Retirement Fund
  • Take fund as taxable cash

APPROVED RETIREMENT FUND

• Approved Retirement Fund can be with any approved investment manager
• Examples of ARF's are Deposit accounts with banks or building societies, An Post, single premium life policy, unit trusts/UCITs or even a portfolio of shares
• The big advantage is the flexibility individuals now have with where their retirement funds are invested after they retire. Effectively, you have total control
• You can draw on your funds in an ARF as and when you want, there is no maximum or minimum rate of drawdown
• All ARFs will enjoy tax free investment returns with all withdrawals liable to PAYE
• Retirement Funds in ARFs can now be passed on as inheritance. The full amount would be liable to income tax at standard rate and exempt from Inheritance Tax

BENEFITS OF FINANCE ACT

• Total control of Retirement Funds
• Your Pension Fund does not die with you
• More tax efficient and allows for good tax planning
• Tax relief bands widened
• Greater felxibility on access of funds
• Investment returns on ARFs are tax free

More detailed explanation of the Pension Planning and the Finance Act are available on request.

TAKING CASH OPTION - EXAMPLE

The above is for illustration purposes only and assumes a growth rate of 11.25% over 7 years at €18,000, level. Professional advice is required when considering pension planning.

 Financial Factsheet »

 Why it is important to stay invested »

 January 2010
Monthly Investment Review Jan 2010

Investments May 2009

Investments Outlook 09

KBC Asset Management