Self-administered pension schemes continue to prove very popular for many investors due to the significant advantages they offer over standard pension arrangements.
Benefits include increased control over management and investment strategies, the ability to determine risk levels in accordance with changing circumstances, access to cost effective investments and the flexibility to invest directly in assets such as direct property.
Self-administered pension arrangements are particularly attractive to business owners or senior employees who prefer a more hands-on approach to their finances using tax efficient investment structures.
The implementation of the IORP II Directive in 2021 changed the landscape for self-administered pensions. However, with the subsequent removal of some employer PRSA pension funding restrictions, self-administered pension arrangements have continued to be popular structures to build personal wealth.
Grant Thornton Pensioneer Trustees Limited facilitates self-administered pension investing independently and in conjunction with other pension providers.
Should you have any concerns around the impact of IORP II on your existing self-administered pension we are available to assist.
Property investment through pension structures is especially attractive. An individual can purchase an investment property through a self-administered pension structure and can potentially avail of bank mortgage finance if required. Rental income from the property accumulates in the pension exempt from income tax and can be used to service debt or for further investment.
When the property is subsequently sold there is no Capital Gains Tax in the pension. As a result of tax free compounded investment returns it is possible to grow pension pots significantly.
Property investments can fund pension lump-sum payments and drawdowns post-retirement while continuing to grow tax free in the pension.
Grant Thornton Pensioneer Trustees Limited is also a provider of Exempt Unit Trust services. An Exempt Unit Trust is a pension structure that holds property and other investment assets segregated from wider pension assets.
Advantages of Exempt Unit Trusts include:
Grant Thornton Pensioneer Trustees Limited can assist you in the setup and management of self-administered pensions, structure investments correctly and facilitate funding where appropriate.
Our expert team of consultants are available to help you now.
Pensions are investment vehicles that are often set up through an insurance company in the workplace as individuals set out on their financial journey. As life demands, commitments and financial goals change as do financial expectations for the future. We believe your pension should also change to suit your changing financial circumstances allowing you choice, flexibility, cost effectiveness and transparency as you build your personal wealth.
The ICAV is a corporate vehicle specifically developed for investment funds and is regulated by the Central Bank of Ireland (the ‘Central Bank’). Like an investment company, an ICAV is a corporate entity that is governed by a board of directors and owned by its shareholders.
Grant Thornton Pensioneer Trustees Limited is a Registered Administrator with the Pensions Authority, is authorised as a Pensioneer Trustee and is a separate legal entity to Grant Thornton Ireland. Terms and conditions apply. Please note that the provision of this product or service does not require licensing, authorisation, or registration with the Central Bank of Ireland and, as a result, it is not covered by the Central Bank’s requirements designed to protect consumers or by a statutory compensation scheme. Registered office, 13-18 City Quay, Dublin 2. Registered number 470637.