Whether you are starting early or late in life, Friends First has a range of pension plans to suit you.
Choosing the right type of pension is the first step in your retirement planning. There are a lot of options available but it is easier than you might think to find the one that is right for you.
Talk to your Financial Broker
This is essential. Your Financial Broker will advise you on how much you need to save for your retirement, how much risk you could take with your money, and what is the best pension plan to suit your needs.
It never hurts to do a little research of your own. You can use our handy Pensions Calculator to give you an idea about how much you need to start putting away for your retirement.
And this quick guide to pension options will prepare you for a more in-depth talk with your Financial Broker.
You are self-employed
You will need to make your own pension arrangements.
That means setting up a pension, arranging to pay your own contributions (the money you pay into your pension) and claiming your own tax relief from Revenue on those contributions. It might sound like a lot of work but your Financial Broker can help you organise all of this.
The benefit of having your own pension is that you get to decide what is best for you. You can decide on the level of risk you want to take, where and how you want to invest your pension and you can be as hands on as you want to be.
You are an employee
Find out if there is a company pension scheme in your workplace. If there is and you can join it, that is generally your best option.
However, if your company doesn’t offer a pension scheme, or if you are not entitled to join it, you will need your own pension plan. Like a self-employed person, you will have to arrange your own pension contributions and claim tax relief from Revenue yourself.
The upside is that you get to have more control over your pension than if you were part of a company scheme.
The downside is that your employer if you have one doesn’t have to contribute into your pension plan.
You are a company director
If you have set up your own company, you will also be able to set up an Executive Pension.
This means that you can get your company to pay into your pension plan. You can also make your own contributions if you want. You can both claim tax relief on any payments you make.
You can usually retain a lot of control over your pension if it is set up through your own company.
Best product for you: Executive Pension.
You have moved jobs
If you move jobs, you can bring your pension fund with you by transferring it into a Pension Transfer Bond (or Buy Out Bond).
You can’t make any further contributions to it, so to continue saving for your retirement, you will need to either join the pension scheme at your new job or set up a Personal Pension or PRSA yourself.
The Pension Transfer Bond gives you more control over your money as you are the one who decides where and how it is invested.
Best product for you: Pension Transfer Bond (Buy Out Bond).