In recent finance acts have made executive or directors pensions a very attractive investment for most small company directors are. There are numerous benefits including –
Tax Relief:
Employers may contribute significant annual amounts up to Revenue maximum contribution rates to provide retirement benefits for Directors and Senior Executives. The tax laws allow for the transfer of significant levels of profit from a company to a pension scheme. For example if the funding rate for an individual male aged 35 with no pension cover is 86%, he is looking at retiring at age 60 versus a maximum contribution rate of 20% under a personal pension plan or PRSA.
Flexible Retirement:
While normal retirement age must be between the ages of 60 and 70, a well funded Executive Retirement Plan gives you the flexibility to consider options such as early retirement, which is normally available from age 50 onwards.
Changing Contributions:
Premiums can be increased, decreased or skipped from any premium due date.
For more information on maximum funding rates and rules on taking benefits please contact us.