Honan Financial Services Limited’s Post

This change has been written into the Revenue pension manual so, at this time at least, is accepted practice. If we were being magnanimous we might take the view that the change was introduced as a deliberate attempt to equalise the ability of the private sector to match the erm, generous public sector pensions. Or that this was a deliberate and clever way of stemming the flow of international pension transfers (since a PRSA cannot transfer overseas in the same way an occupational pension can) But from the correspondence in this article it seems that it was just a mistake. As Financial Planning practitioners we can conclude only one possible outcome that it most likely will be reversed in the future so, as they say, if you are a company director fill your boots. This won’t be around forever and we will all have to go back to trying to set aside adequate funds for our retirement by being lucky with scratch cards……

Possible changes in PRSA pension funding under review. Important when planning your pension funding options, to be fully informed of all your options. https://lnkd.in/eGEsPdJa

Company pension funding possible changes ahead! Important article to read, currently Company Directors can fund their Personal Saving Retirement Account [PRSA] by up to 2m without any tax implications, this may be about to change.

Pension tax relief - more valuable than ever? With the Scottish Government raising income tax yet again, pension tax relief has never been more valuable - Steven Mearns of TaxAssist Accountants explains... There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: 1. Workplace pension schemes 2. Personal pension schemes All employers have to provide a workplace scheme due to "auto-enrolment" rules albeit there are minimum amounts that the employee needs to be earning before the employer is legally bound to make pension contributions. For the self-employed and company directors, a personal pension scheme will be the norm. Many employees might choose to have a personal pension also, either in addition to, or in place of a workplace pension. In this article I have tried to help the reader understand how making pension contributions affects the amount of tax that we pay, and to think about the "tax cost" of your money so you understand the cost of not making a pension contribution. Click image for full story Aberdeen & Grampian Chamber of Commerce Member News #pensions #taxrelief #taxaccountant

Did you know, according to a 2023 survey, 32% of workers aged between 20 and 69 are not signed up to a private pension?  Last week, the Cabinet approved a Bill that is designed to create an auto-enrolment pension system in Ireland, due to commence in January 2025. But what does this mean for you as an employer? ➡️ All employees aged between 23 and 60 earning more than €20,000 per year will fall under the remit of the auto-enrolment scheme ➡️ The cost will depend on how much your employee will earn - they will contribute 1.5% of their gross salary for the first three years, later increasing to 6% over the years  ➡️ Their employer will match their contributions, and the State will contribute €1 for every €3 they pay. In other words, if they contribute €675 in year one, they will end up with €1,575 taking your employer contributions and the State's incentive into account A lot of employers are getting ahead of this impending issue now and seeing it as an opportunity to engage staff proactively. To find out more and prepare for auto-enrolment, please contact us here https://lnkd.in/ee8A37xb https://lnkd.in/e7AcpN8Z #autoenrolment #InsightPrivateClients #pensions #privatepensions

According to the Institute of Fiscal Studies, the next political party needs to address several pension decisions to better the outcome of policies for the public. For example, the IFS wants the new government to look into how sustainable the new pension is and to bring in support for those who can’t work as far as the increased pension age. What other things do you think need to be addressed? Let’s talk. Read more here: https://bit.ly/3zsNnYG #Pension #StatePension #TripleLock

We are one step closer to pension auto-enrolment as the Bill to introduce the scheme goes before Cabinet for approval. #autoenrolment #pension #employers #irishbusiness https://lnkd.in/ex5BxTas

According to the Institute of Fiscal Studies, the next political party needs to address several pension decisions to better the outcome of policies for the public. For example, the IFS wants the new government to look into how sustainable the new pension is and to bring in support for those who can’t work as far as the increased pension age. What other things do you think need to be addressed? Let’s talk. Read more here: https://bit.ly/3zsNnYG #Pension #StatePension #TripleLock

Finance Act 2022 removed constraints whereby Employer contributions to Personal Retirement Savings Accounts (PRSAs) were previously subject to a Benefit in Kind charge and contributions limited to an employee's salary or years of service. Therefore, company directors, business owners, and key employees can now receive unlimited contributions to their PRSAs subject to a ceiling of €2m, significantly enhancing their ability to plan for retirement. Jim Stapleton CFP®, Head of SME Financial Planning commented that at "a recent Oireachtas Finance Committee meeting recently, Revenue Commissioner chairman Niall Cody told the meeting that he “was concerned” with the amendment and that this “concern has been shared” with the Department of Finance. The Department of Finance is monitoring the relaxation of the funding changes closely." So for now, employer contributions to Personal Retirement Savings Accounts (PRSAs) continue to remain exempt from the BIK and company directors, business owners, and key employees can still receive unlimited contributions to their PRSAs. For the company, it can pay up to €2m into a PRSA and claim full Corporation Tax relief immediately. If you have any pension funding queries, contact Eolas Money and we will be delighted to help.  #retirementplanning #wealthcreation #eolasmoney Jim Stapleton CFP®

Today, on February 1st, Minister Heather Humphreys has reaffirmed the commitment to the State's new auto-enrolment pension scheme, slated for implementation in 2024, with initial enrolments anticipated by year-end. Her message carries assurance to employers regarding concerns over costs, emphasizing that delay is not an option. Additionally, pre-qualified companies, shortlisted for the administrative service contract, will commence tender invitations from tomorrow onwards. The imminent provider selection marks significant progress, leading up to the scheme's launch later this year. Last month, the scheme was slated to commence. For further insights, I invite you to read a short article I authored last year, accessible via the link below. Whether you're an employer or an employee, it's imperative to familiarise yourself with this information, particularly if you're not currently a member of a pension scheme. [Link to the article] https://lnkd.in/gaMPEc9F #autoenrolment #pensions #employers #employees #financialplanning #pensionschemes #autoenrolment #finances #retirementplanning #retirementgoals #retirementincome BNI Mayo SYS Group