|
|
Executive Benefits Limited
Ph: 01-4589369
Executive Benefits Limited
Athgoe Lodge
Newcastle
Co. Dublin.
Athgoe Lodge
Newcastle
Co. Dublin.
Ph: 01-4589369
info@ebl.ie
www.ebl.ie
info@ebl.ie
www.ebl.ie
___________________________________________________________
___________________________________________________________
"Personal service,
and individually
tailored financial
planning solutions"
Executive Benefits Limited is regulated by the Central Bank of Ireland.
Most frequently asked questions include the following:
How did the Irish Life funds performed over the last year?
You can download a note from Irish Life showing the performance of their full range of pension investment funds here.
You can download a note from Irish Life showing the performance of their full range of pension investment funds here.
How does this affect my pension?
A pension fund is a long-term investment and it is important to remember that investments can fluctuate in value over time. For example, the market falls in 2008-2009 were particularly severe . However, markets recover from falls over time, and long-term investors are generally rewarded for their patience. In fact the markets recovered very strongly in the period since 2009. It is however particularly important to pay attention to your pension fund values and choice of investment fund as you come close to retirement.
A pension fund is a long-term investment and it is important to remember that investments can fluctuate in value over time. For example, the market falls in 2008-2009 were particularly severe . However, markets recover from falls over time, and long-term investors are generally rewarded for their patience. In fact the markets recovered very strongly in the period since 2009. It is however particularly important to pay attention to your pension fund values and choice of investment fund as you come close to retirement.
Are there other investment funds available to me?
Yes. The default fund in the O'Connor Sutton Cronin pension scheme is the Personal Lifestyle Strategy Fund. The Lifestyle part means that as you come close to retirement the fund automatically and progressively transfers your fund over from the growth fund to a mix of funds that are appropriate to the way in which you wish to draw your benefits at retirement time. However you have the option of investing in any of the other investment funds available to you through the scheme. You can read upon these funds and their assiciated risk/voilatility ratings here.
Yes. The default fund in the O'Connor Sutton Cronin pension scheme is the Personal Lifestyle Strategy Fund. The Lifestyle part means that as you come close to retirement the fund automatically and progressively transfers your fund over from the growth fund to a mix of funds that are appropriate to the way in which you wish to draw your benefits at retirement time. However you have the option of investing in any of the other investment funds available to you through the scheme. You can read upon these funds and their assiciated risk/voilatility ratings here.
Should I continue to contribute even if the fund is falling in value?
We believe that it still makes sense to continue to invest pension contributions even in a falling market. First of all, you receive tax relief on your contributions so this has the effect of considerably reducing the net after-tax cost of your contributions. Secondly, as long as you contribute towards your pension the employer will contribute too. Thirdly, in a falling market each contribution buys relatively more and cheaper units in the investment fund so that you get a better average unit price over time and you get the benefit of this when the markets recover and your investment units increase in value accordingly (this is known as Euro Cost Averaging).
We believe that it still makes sense to continue to invest pension contributions even in a falling market. First of all, you receive tax relief on your contributions so this has the effect of considerably reducing the net after-tax cost of your contributions. Secondly, as long as you contribute towards your pension the employer will contribute too. Thirdly, in a falling market each contribution buys relatively more and cheaper units in the investment fund so that you get a better average unit price over time and you get the benefit of this when the markets recover and your investment units increase in value accordingly (this is known as Euro Cost Averaging).
What are my pension options at retirement?
Under the present O'Connor Sutton Cronin pension scheme rules normal retirement age is 65. At retirement the pool of money which has been built up through the pension scheme will be used to secure your retirement benefits. The particular combination of benefits is decided by you on the date of retirement, but normally people will choose to take a combination of a tax-free lump sum plus an annual pension for life thereafter. The amount of your fund that you can draw as a tax-free lump sum depends on your length of service at retirement.
After you have drawn down your tax-free lump sum the balance of your retirement fund is then used to provide you with a secure annual income for the rest of your life. You will have a choice at retirement as to the type of income you wish to receive. For example you may wish to have an income that increases each year to protect your pension income from the effects of inflation, or you may wish to draw a flat level pension. You may wish to provide for a pension to be payable to your spouse in the event of your death in retirement. Alternatively you may elect to draw a pension that ceases on your death but that is guaranteed payable for at least five years. The rate at which your retirement fund translates into income is called the Annuity Rate. This rate can vary from time to time; however once you start drawing your pension income the rate is set for life. The decision as to which type of income to draw is made at retirement time, and we’ll be happy to advise you.
Under the present O'Connor Sutton Cronin pension scheme rules normal retirement age is 65. At retirement the pool of money which has been built up through the pension scheme will be used to secure your retirement benefits. The particular combination of benefits is decided by you on the date of retirement, but normally people will choose to take a combination of a tax-free lump sum plus an annual pension for life thereafter. The amount of your fund that you can draw as a tax-free lump sum depends on your length of service at retirement.
After you have drawn down your tax-free lump sum the balance of your retirement fund is then used to provide you with a secure annual income for the rest of your life. You will have a choice at retirement as to the type of income you wish to receive. For example you may wish to have an income that increases each year to protect your pension income from the effects of inflation, or you may wish to draw a flat level pension. You may wish to provide for a pension to be payable to your spouse in the event of your death in retirement. Alternatively you may elect to draw a pension that ceases on your death but that is guaranteed payable for at least five years. The rate at which your retirement fund translates into income is called the Annuity Rate. This rate can vary from time to time; however once you start drawing your pension income the rate is set for life. The decision as to which type of income to draw is made at retirement time, and we’ll be happy to advise you.
Another popular way to take benefits include the option to take a tax-free lump sum
of up to 25% of the value of your fund at retirement, and instead of setting up a
fixed annuity/income you could instead place the balance of your fund in an
Approved Retirement Fund (ARF) from which you can draw an income. Further
details of pension options at retirement are contained in the Irish Life Pension
Scheme Members Guide.
How do I know how much is in my pension fund?
Every year you will receive an Annual Benefit Statement showing the current value of your pension fund. You can also log in to your pension account online. If you would like a more up-to-date valuation please contact the scheme advisor Tony Gleeson in Executive Benefits Limited.
Every year you will receive an Annual Benefit Statement showing the current value of your pension fund. You can also log in to your pension account online. If you would like a more up-to-date valuation please contact the scheme advisor Tony Gleeson in Executive Benefits Limited.
How do I know if I'm making adequate provision?
Your annual benefit statement will include a projection of the amount of benefits you might reasonably expect at retirement.
Your annual benefit statement will include a projection of the amount of benefits you might reasonably expect at retirement.
What about the State pension, will I be entitled to it too at retirement?
The O'Connor Sutton Cronin pension scheme benefits are payable to you as well as the State pension scheme. However, you should bear in mind that the State pension benefit is current paid by the State out of current tax revenue. At present there are 6-8 working people in Ireland for every one person drawing pension benefits. It is estimated that due to population changes, by 2060 there could be as few as three working people for every one person drawing pension benefits.
This means that there will be inevitable downward pressure on the State pension resulting in either much higher taxes in the future or lower State pensions. It is therefore very important to make as much provision for pension as possible so that you are not dependent on a lower State pension in retirement.
The O'Connor Sutton Cronin pension scheme benefits are payable to you as well as the State pension scheme. However, you should bear in mind that the State pension benefit is current paid by the State out of current tax revenue. At present there are 6-8 working people in Ireland for every one person drawing pension benefits. It is estimated that due to population changes, by 2060 there could be as few as three working people for every one person drawing pension benefits.
This means that there will be inevitable downward pressure on the State pension resulting in either much higher taxes in the future or lower State pensions. It is therefore very important to make as much provision for pension as possible so that you are not dependent on a lower State pension in retirement.
Do I receive tax relief on my pension contributions?
Yes, your pension contributions are deductible against income tax. Please see: https://www.irishlifecorporatebusiness.ie/tax-advantages-pension-plan
Yes, your pension contributions are deductible against income tax. Please see: https://www.irishlifecorporatebusiness.ie/tax-advantages-pension-plan
Can I track the performance of my pension investment fund online?
Yes, the Irish Life company website has a very useful section which allows you to get the current unit price, and also to show a graph of the fund unit price over time.
Yes, the Irish Life company website has a very useful section which allows you to get the current unit price, and also to show a graph of the fund unit price over time.
Can I top-up my pension contribution?
Yes. If you want to increase your pension, you can top-up your pension contribution by making Additional Voluntary Contributions (AVCs). Tax relief is available on these contributions subject to certain limits, making AVCs a very tax-efficient way of saving for your future. You can vary these contributions from month to month if you wish, to take account of your changing financial situation.
You can also back-date a contribution to the previous tax year and claim tax relief against last year's tax.
Yes. If you want to increase your pension, you can top-up your pension contribution by making Additional Voluntary Contributions (AVCs). Tax relief is available on these contributions subject to certain limits, making AVCs a very tax-efficient way of saving for your future. You can vary these contributions from month to month if you wish, to take account of your changing financial situation.
You can also back-date a contribution to the previous tax year and claim tax relief against last year's tax.
I have some pension funds built up from a previous employment; can I
transfer this into my O'Connor Sutton Cronin pension fund?
Yes, the O'Connor Sutton Cronin pension scheme accepts transfers in from other occupational pension schemes. You should contact the scheme advisor Tony Gleeson in Executive Benefits Limited to discuss this with him.
Yes, the O'Connor Sutton Cronin pension scheme accepts transfers in from other occupational pension schemes. You should contact the scheme advisor Tony Gleeson in Executive Benefits Limited to discuss this with him.
Any Queries: If you have any queries in relation to pension matters, including
current or previous pension arrangements please contact the scheme advisor: Tony
Gleeson, Executive Benefits Limited. Email: tonygleeson@ebl.ie Phone: 01-4589369
Mobile phone: 087-2570139.
How do I join the company pension scheme?
Download a copy of the Company Pension Application Form, complete and sign the form and return it to James Barrett, O'Connor Sutton Cronin, 9 Prussia Street, Dublin 7.
Download a copy of the Company Pension Application Form, complete and sign the form and return it to James Barrett, O'Connor Sutton Cronin, 9 Prussia Street, Dublin 7.