Pension

Pension Planning 

Making plans for retirement or pension planning has become more important than ever.   The state pension age has been pushed out to 68 and may not be around for much longer.  The earlier you start your pension planning the easier it will be for you in retirement.

Retirement Annuity Contract (RAC)

Also known as a Personal Pension Plan owned by an individual who is not contributing to a company pension plan - suitable for self employed or employed working where no company pension is in place.

PRSA (Standard)

Personal Retirement Savings Account is similar to a Personal Pension Plan in that it is suitable to the same group of people. The Standard PRSA has fixed charges of 5% and a 1% management charge and usually has a smaller range of funds than a Personal Pension Plan with no high risk funds.

PRSA (Non Standard)

Has a broader range of funds than a Standard PRSA and these can include high risk funds.  The charges can be higher than a Standard PRSA but this is not always the case.

Executive Pension Plan

A Pension Plan owned by a company director, this can be funded by the company or the directors salary or a mixture of both.

Occupational Pension Scheme

Or company pension schemes are established by employer's to provide retirement and death benefits for their employees.  These are usually set up under trust or established by statute for state and semi-state bodies.

Annuity

Is a policy that will pay a fixed amount for the remainder of your life with the first 5 years usually guaranteed.

AMRF

Approved Minimum Retirement Fund is a policy which you invest the first €63,500 of your pension after taking your tax free lump sum should you choose to, this cannot be drawn down until age 75 but the growth can be drawn down and option to purchase an annuity can taken at any stage.

 ARF

Approved Retirement Fund is type of post retirement fund after the initial €63,500 in invested in an AMRF, this can be drawn down at any stage and a minimum of 4% must be drawn down yearly until age 71 thereafter 5%

AVC's

Additional Voluntary Contributions are made by employees in addition to any compulsory contributions which are made to a company pension scheme, they are used to increase the member's benefits within limits set by the revenue commissioner.

Self Directed

This can be from a Personal Pension Plan, Executive Pension Plan or a Non Standard PRSA.   Basically you decide what asset classes you want to buy with your pension.

Small Self -Administered Pensions (SSAPs)

Are a type of occupational pension scheme not fully administered and insured by a life office.  These are considered to be the most flexible type of pension scheme in terms of contributions and investment options.

Buy out Bond (BOB)

Is single premium pension plan held in the name of a member on the termination of service, retirement or the winding up of an occupational pension scheme.  Depending on the status of the scheme the member can purchase a buy out bond or in certain circumstances the trustees may purchase on behalf of the member.

Investment Platform

Fund platform or Investment platform is an online service that allows investments to be bought online, such platforms usually simplify the process of investing in investment funds and may provide them at a discounted rate. More transparent way of Investing in funds.