As you get older your pension comes more into focus. So investing it in a standard insured structure is sometimes not the way to go.
One of the most flexible ways for directors and senior employees of companies to save for retirement is through a Small Self-Administered Pension Scheme (SSAP). Setting up a SSAP is a very straight forward process. A SSAP is established by your employer, for your benefit. As it is a SSAP you decide on the level of risk you are happy with so you have control over where your pension assets are invested. Unlike most standard pension arrangements you can choose from a broad range of investment options including purchasing residential and commercial property, land, Irish and International equities, investment funds, bonds, cash and many more asset classes (subject to Revenue guidelines).
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Investing in property through your SSAP can be particularly attractive for the following reasons:
- you can choose the property, residential or commercial, once Revenue rules are satisfied;
- where available, borrowing can be utilised to assist in funding the purchase;
- all of the costs (including solicitors, auctioneer, stamp duty, property tax, water charges, maintenance and management charges) can be paid from the fund and all rental income accumulates tax-free within the SSAP;
- on disposal there is no Capital Gains Tax (CGT) liability; and
- on retirement the property can be transferred over to your new Approved Retirement Fund (ARF) and continue to generate post-retirement income.
Another key advantage of a SSAP is that income tax relief on employee and employer contributions presently remains at the higher rate of tax. On retirement you can also take 25% of the value of your SSAP tax free up to a maximum of €200,000.
Why Grant Thornton Pensioneer Trustees Limited?
Our Pensioneer Trustee service can offer business owners, directors and/or employees the opportunity to manage their own retirement choices without the investment restrictions, high charges and lack of transparency applicable to some pension policies.
As the Pensioneer Trustee of your SSAP we will advise you on the legal and technical aspects of your pension, the level of funding allowable and keep you informed of any significant legislative changes affecting your pension. As a trustee we do not provide investment advice.
Our professional and practical approach has served our clients well and with eight offices across the island of Ireland, we have always been accessible. Our strategy is based on providing a superior but cost effective service to our clients.