Executive Pensions

Pension Terminology

Risk Level – Each fund has a risk level attached to it which is a guide how risky the fund is. A higher number means a higher risk fund and a lower number means a lower risk fund. A higher risk fund will give you more potential for investment growth. The scale is generally 1 to 7.

Tax Relief – Is a tax deduction on your pension contributions. It is an incentive to encourage people to save into their pensions.

Contributions – These are the payments you pay into the pensions fund they can be made in lump sums or recurring monthly premiums.

What is an Executive Pension?

An Executive Pension is a pension set up by a Limited Company for the benefit of the Directors/Employees of the company. The pension is set up under a trust with professional Trustees appointed.

With an Executive Pension both employees and employers can make contributions. The ultimate value of your pension plan will depend on the contributions that have been made over the years and the investment return the funds have achieved in your Executive Pension.

Can anyone get an Executive Pension?

Only employers or employee of limited companies can set up an Executive Pension.

What are the benefits of an Executive Pension?

You can contribute a much higher percentage of your salary into an Executive Pension compared to a Personal or PRSA. For example, in a PRSA or Personal Pension, someone aged under 30 can contribute up to 15% of their salary into their fund, where as in an Executive Pension, up to c.72% of their salary could be contributed between employer and employee contributions (capped at 15% for the employee contributions).

How do I get an Executive Pension?

Executive Pensions are available from most Life companies, and a broker would be able to give advice on what options are available.

If you have an Executive Pension currently or would like to start saving for your retirement, you can always talk to one of our advisors for impartial advice.