Archive for the 'Pensions' Category

Removal of USC from employer paid PRSA’s

During his Budget speech, the Minister announces the headline changes; those that will grab headlines and in an election year, those measures that will win votes. A couple of weeks later, the Finance Bill is published, which contains all the details and the changes that didn’t make the speech. Pensions were largely absent from the […]

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The Pension time bomb is ticking even louder

It was interesting, and very worrying, to read about the report by international consultants McKinsey in the paper last week.  They said that the Old Age Pension is unsustainable. They say that the Social Insurance Fund from which State pensions are paid has a current deficit of €2 billion a year, which will increase to […]

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Are pensions overly complicated?

A report issued last week for the Journal of Aging & Social Policy found that 66% of over 50’s didn’t know either how their pension pot would be paid at retirement or the amount of their benefits. This is a frightening statistic for a demographic that should be thinking about life after work. You have to […]

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Rebalancing

Last week, I wrote about diversification and the need to have it as part of any investment strategy. Once your investment strategy has been put in place, it has to be managed to ensure that it meets long term expectations and risk exposure. Rebalancing forms a key part of that strategy management. What is rebalancing? The […]

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Diversification

When we give clients investment advice, we always recommend that they have a diversified portfolio of assets. In this weeks article, we are going to look at what diversification is. What is diversification? Diversification is a method of reducing the risk that your money is exposed to. This is done by investing in a selection […]

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The difference between a PRSA and a Buy Out Bond

The world of pensions can be pretty confusing. There are loads of different pension types and while primarily, they do the same thing i.e. saving for retirement, there are some differences between each plan. When someone leaves employment, two of the options they have is to transfer their benefits to a PRSA or a Buy […]

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Personal Fund Threshold

The deadline for submitting a Personal Fund Threshold (PFT) notification on 31 July 2015 is fast approaching. While it only affects a few, if it does apply to you, it is very important to make the notification in order to avoid a very hard taxation system. So, what is a Personal Fund Threshold Standard Fund […]

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Danger of buying back years for Defined Benefit Pensions

A few weeks ago, I got a phonecall from a retired member of the DAA pension scheme. He had contributed to AVC’s for all his working life with the DAA and when he came to retirement, he decided to buy back years to boost his pension. He was phoning me because as part of the recent […]

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What happens to my pension if I die?

I have written about the different type of pension plans before. They are mostly all the same i.e. a savings plan for retirement, but there are differences such as how much you can put into a particular plan . Another difference is what happens to your pension if you die. People are afraid that the insurance company will […]

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Investment Philosophies – Passive Fund Management

Last week, we looked at the active fund management approach to investing. Continuing on, this week, I am going to look at another approach, passive fund management. You can them make your own mind up on which approach to use for your money. What is Passive Fund Management? Passive fund management is where a fund mirrors a particular index. They are […]

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