Just wanted to thank you guys for these videos! They are very helpful for someone like me who has no background in finance. So great work and keep it up guys!
Well done guys! You covered the key points there! You mentioned ETFs a few times but did not say what they are. Financial Services is full of abbreviations which we become familiar with when working in that area but for your average investor I have shown below the Google definition: ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours-potentially lowering your risk and exposure, while helping to diversify your portfolio.
Thanks Derek! We have a video on ETFs also (linked below) but thanks for taking the time to jot down the definition here - helpful for others to reference when they come across this vid. Nice one and cheers for watching. th-cam.com/video/InfLTMTllg4/w-d-xo.html - Ste
Fantastic video lads, love the pros and cons list! The tax incentives are fantastic, lot of folks don’t take advantage of a pension fund early enough in life!
I'm doing some pension research for a friend of mine and am delighted to have come across this ROI specific channel and its great content. Thank you. However, live in the north of the island and am horrified to hear about "deemed disposals" on ETF's and 41% tax rates even if you don't sell. That's daylight robbery! Odd that the unionists would put flags and anthems at the top of their objections list in a border poll!
Fair play, Adam! When you consider you likely still have a good 30 years of work left in ya, that's some considerable compounding power :) Hopefully your investing returns allow you to pack it in a bit earlier than that so that you can enjoy the fruits of the labour! - Ste
@@adam_williamk8280 Saving is great and everybody should be doing it the younger a person starts the better. Investing should also be part of a persons future plans as well. If you invest 20% of your savings that can then be a large lump of money on top of the saving. A person in Ireland with a median income can retire a millionaire and also carry that investment on when they retire so as to have money 25 years after retirement as well.
@@AllTheJCs most likely she is on the Single Scheme. All public servants joining in recent years are on this. Each year she works in the public service she will accrue a "referable amount" to her lump sum and annual pension. These referable amounts are added together and paid in addition to the state pension, on reaching state pension age. Each public sector employer is supposed to send an annual statement listing her contributions and referable amount, many don't though. She should ask her HR for it. It's required under a circular from PER and maybe even the legislation establishing the scheme (I'm not sure)
You lads are awesome! Really proper content, nicely done and quite easy to digest. Not sure if this is the right place to ask. But I will give it a try. I get that the company pension (P Pension/E Pension on payslip, 5%/5%) is not the PRSA, right? Since that is the case then I don't need to fill in the "Personal Retirement Savings Accounts (PRSA)" under "Your Job"on the Form12-Income Tax Return? Can I get the tax return on the Company Pension? If yes, then how is it done? If this is not the right place to ask, then where would you recommend to get the answers, help etc ? Thanks!
Hey Krzysztof - Sorry for the late reply on this one. So yes, unless you signed up for a PRSA yourself, then your assumption is likely correct. With pensions, in can be quite 'company specific', so I would suggest speaking with your pension administrator in work (likely someone in HR or Finance departments) or if its a smaller company, perhaps speak with your boss directly? They'll be able to offer you more specific guidelines in terms of what has and what has not been deducted. Sorry we can't be of more help! - Ste
Thanks for the info guys. Could you please explain the cost/fees of early withdrawal from a pension fund when company is matching your contribution? Thanks in advance!
Hey Lorena - it really depends. You'd need to speak directly with both your pension provider/employer. In many cases, you're simply not able to cash it in early. In some scenarios you can, but you'll be taxed on the full amount without any of the tax breaks that you would've received per the plan itself. - Ste
Great content lads! I'm looking to set up a directors pension from my limited company in Ireland and invest in an ETF. Can you cover this in a video as i can't find much information online about this.
Hey John, cheers for that. Nice one for the suggestion, and a good one also. We'll add it to the list! Anything in particular you'd like us to focus in on or just a general overview?
Revenue is so useless for information like this, your video was so informative for 20 year olds like me TT TT Life savers for real! To clarify, so any contributary pension schemes have to be arranged through your employer?
Hey Victoria - thanks for the positive feedback! Not necessarily, as you can set up a PRSA regardless of your employment status. Unless I've misunderstood your question? 🤔
Are ARF pensions inherited by unmarried surviving partners really taxed @ 73% (33%IHT+40%IT)? Revenue taking more than the beneficiary is entitled to strikes me as grossly unfair.
Any thoughts on utilizing self administered pensions to buy property? CGT is zero when you go to sell which is attractive. Financial advisers advertising this service promoting local authority long lease to safe guard the renting out of the property and take out the hassle. Would love your view?
Hi Angela - Sorry for the delay in getting back to you on this. Hectic week! Your comment was also quite timely, as there was an article in the Irish Times which basically addresses your exact question (not sure if you saw it, but ill link below). In short, I'll be totally honest and say my knowledge is limited when it comes to SSAS. I've always considered the idea of investing in property through a pension, but hadn't actively pursued it as my capital focus at the moment is more on in equities. I'm curious though, is your reference to the 'local authority long lease' referring to the social housing investments mentioned in the Times article? All in all, definitely something we need to delve into a bit more. Would love to hear your own experiences with SSAS and what your own plans are in this regard! Cheers for the comment and for watching. - Ste Times article: www.irishtimes.com/life-and-style/homes-and-property/why-buying-a-property-with-your-pension-just-got-a-lot-harder-1.4604953
Nothing solid yet, Kev - we'll probably end up doing a rough guideline video based on the limited info thats currently available, and then hopefully elaborate on it in a future video as more info comes through. I (Ste) am in the same boat as you, receiving staking rewards, but still unsure where we stand. Will keep you in the loop! Hoping to chat directly to revenue about it, but they've been very slow responding (likely because they don't know yet either!)
Thanks for the info, thinking of moving home and I’m looking at continuing my investments. Can you do a self directed option? You pick the stocks ETFs with the dividend % you want like SVOL at 16% or VOO in the S&P500 or its equivalent for example. That’s the only way I would do something like this or you will end up with 5-6% or you pay a ridiculous 41%. Is there a retirement fund option on 212 or resolute, or another option. Thanks 👍.
Good informative video, and I'm happy to pay into a pension fund but when I spoke to a broker I felt he was making it intentionally complicated to the point I didn't trust him. All I want is a tax brake and something akin to a 401k as in the USA, not a fixed income for me dependant on how long I live.
Hey John, Thanks for watching. Do you mean tax breaks on payments into the pension? Yeah, some of the terminology is confusing for sure (if you have any qs on that let us know). Might be worth talking to some other brokers to get more opinions as I believe most give free consultations. Also sharing a guide here on types of pensions in Ireland, long read but could be helpful to skim through before you chat to another broker: www.pensionsauthority.ie/en/employers/checklists_and_guides/what_are_my_pension_options_.pdf - Cian
Thanks Cian, I figured it all out in the end, but the upshot was, if I put 200 a month away for the next 15 years till I retire, I will get 100 a month annuity, even with tax breaks that isn't worth it. I think I will invest in crypto instead,
@@TheLearningsReport thanks, learning lots here, reading up on pensions and maybe somewhere out there there is a better deal. P2p lending seems to be really working for me, keep up the good content!
Thank you for the video! I've seen very expensives pensions providers! More than 2% per year and this is a lot. Do you have any video about providers? Thanks a lot
Hey Didi, Thank you for watching the video! We don't have a video looking at individual pension providers, unfortunately. Are you looking to invest in a private pension for yourself or do you have any option through a company? It might be worth talking to a pension broker to filter out all the noise of various companies trying to sell you their pensions. Plenty of companies offer these services in Ireland and you can most likely get a consultation for free. Let us know how you get on! - Cian
Hey Didi, Ste here - just wanted to add a small follow up to Cian's comment! We'd be interested to hear which pension providers you were looking at - we could definitely look at doing a video review of the market leaders that are available if our audience were interested 👍
Thanks for the video, it’s very insightful, I have a question, how much time one should work in order to get a decent pension, is there a number of years to have the rights to receive a pension, or there is an specific amount of money, that one gather over the years that gives the right of receiving pension? Or it doesn’t matter. We wanna move to Irland in the near future, and we are in our forties, will appreciate your answer. I’m a physician and my wife is an accountant. Thanks again.
Hi Lads great video thank you. I am 58 and my wife is 52 and we have both been self employed most of our working lives- are we to late to start investing in our pensions?
Appreciate the positive feedback, cheers for that! Depending on your pension provider, you may be able to withdraw your contributions but you may need to deal with some backpay of taxes (and potentially an early withdrawal penalty also). Chat to your finance department/pension provider and they'll be able to give you some more info! - Ste
Unfortunately we can't really offer advice in that regard! But the two links below will at least give you some options to look into. Hope this somewhat helps :) www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/personal_retirement_savings_accounts.html www.pensionsauthority.ie/en/i_want_to_start_a_pension_prsa/prsas/prsa_providers_and_products_register_-_january_20221.pdf
Hey Mateusz, Is your employer saying that pension contributions are mandatory in general or that the 5% is? Either way, neither are a legal requirement - you are not obliged to contribute to a pension and if you do, there is no % you have to contribute. Within a company, the rules may be different. For example, to get a matching contribution from the company, you may have to contribute a minimum %. I would check with your employer exactly what they mean about it being mandatory. 👍 - Cian
@@TheLearningsReport I know pension state is mandatory but they said I need contribute 5% of my salary to private one and there is no option to not join this scheme
@@mateuszgralak OK, that sounds like a company requirement as there is no obligation to pay into a private pension. I would get some clarity from your your employer. - Cian
Hi Simon, Glad you found the video helpful. Yes, it is based on your gross salary. And as you said 25% from ages 40-49. Your gross salary is capped at €115,000 for this relief. And this is across all of your pensions if you have multiple. More details here: www.revenue.ie/en/jobs-and-pensions/pensions/tax-relief-for-pension-contributions.aspx Hope this helps, any questions let us know! - Cian
Hi, any standard prsa plans that have etf available ,with less management fees? Can we swing trade between etf in a prsa plan? Iam self employed for pension purposes😢😢😢.
Again great video lads!! I have a question: If a foreign national decide to contribute to pension at the age 30 and unfortunately has to leave Ireland at the age of 40 then what will be the penalty percentage if he/she wants to withdraw the money before going back to the home country?
Hey Bedanta - That's a great question, and I'm not 100% sure on how that would go. My guess would be that it would come down to your pension provider, and what their rules are. It would also depend on the type of pension too. My suggestion would be to check with your pension provider, and then also do some research on the tax liability (either pension provider or revenue.ie should hopefully offer some guidance on that!) Sorry I can't give you a more solid answer! - Ste
In short, it depends on the type of pension and your pension provider. This Irish Times article gives a great breakdown of some of the scenarios (it's behind a paywall, but use the €1 month trial). www.irishtimes.com/business/personal-finance/can-i-cash-in-my-pension-early-rules-and-exceptions-explained-1.4545712 Also, the journalist, Fiona Reddan, has done some great investing pieces that are worth checking out regardless! Just fyi 👍
Hey Richard, Is the pension deducted at source? I imagine so if it is a company scheme. Do you see it deducted on your payslip? I would contact someone in payroll to understand how this is reported as I believe it should show up on your pre-populated form. Or are you paying outside of your employer? If so, then you should include it on your form 12. You can check out our video on Form 12 here: th-cam.com/video/x4QVvH8DjM4/w-d-xo.html - Cian
Basic question but...for a company pension where the company match contributions, is that actual fund separate from your PRSA? And if so, what happens when you switch company?
I am 34 and in higher tax bracket. I maxing out pension with AVC since last 4 years. I don’t have other investment as it is taxed heavily. Is it wise to max out pension. Fund I selected is 100 % equity as I can take risk because of my young age. My office says you can access pension from 51 age. I am confused, you saying 60
Very interesting video, thanks! Can you please tell me more about the deemed disposal? Say I hold an ETF for 16y, will I need to pay twice 41% and then another 41% when I sell? Can't be right
Thanks Massimo! With deemed disposal, every 8 years you will will be liable for tax at 41% on any gains in the preceding 8 years. So yes, in a 16 year period this would happen twice. Whenever you actually dispose of (sell) the ETF, a tax credit is given for the tax paid on the deemed disposal. If the ETF subsequently falls in value and you cash it in , you can submit a claim to the Revenue for overpaid tax due to deemed disposal. Have you watched our video on ETFs yet? We go into a bit more detail there! th-cam.com/video/InfLTMTllg4/w-d-xo.html
To avail of the tax benefits does the pension sum have to be deducted at source by employer? Or can payments be made privately and claimed through revenue online? Thanks
Hey Darran, Great question - you can claim through Revenue when you file your tax return, either form 11 or form 12 depending on whether you are a Chargeable Individual or not. More information here: www.revenue.ie/en/jobs-and-pensions/pensions/tax-relief-for-pension-contributions.aspx Form 11 step- by-step guide: th-cam.com/video/15fgO8-8o6g/w-d-xo.html Form 12 step- by-step guide: th-cam.com/video/x4QVvH8DjM4/w-d-xo.html - Cian
Hi I have a question I am thinking about starting a personal pension when researching I see the the main Pension provider's in Ireland charge around 1 to 1.5% for annual management fees. I am going to put my pension in a passive index fund like S@P 500. I see in UK with the likes of Vanguard investor UK ,pension management fees are about 0.15% . Is there anyway of starting a passive pension fund in Ireland with low management fees, Vanguard don't appropriate in Ireland as far as I'm aware.
Hi Darren, Thanks for the question. I think what you are looking for is a Self-Directed Pension / Self Invested Pension Plan. These give you control over what you invest in, however, I think you still will need to appoint a pension administrator and imagine that the charges won't be cheap in Ireland. The initial set up charges are supposed to be expensive, however, you could potentially earn better returns than a regular pension fund. It might be worth talking to a pension broker to understand your options better. Usually you can get a free consultation so no harm in setting one up and checking whether it's right for you. Here's an old article that explains some of pros and cons: www.irishtimes.com/business/take-a-more-direct-approach-to-your-pension-1.945602 And also sharing another article here from one of the Pension providers as an overview: moneycube.ie/start-a-pension/self-invested-pension-plans/ - Cian
People focus too much on fee's and it puts many off from investing and compounding their investments over a period of time. While you can add that 1.5% up and sweat over the cost you cannot get anything while you do not start the process.
Hi guys, I'm 19 and working part time, currently keen to open a pension account asap. Do ye know which companies i should consider setting up a prsa account with? I would like one with a high returns record and which allows me to choose which funds/stocks i invest my pension funds into. Thanks!
Hey Amk, Great to hear that you are getting started so early - the best thing you can do for any investing. So, I'm not too familiar with all the various PRSAs (rates and options) but what I would recommend is chatting to pension broker as they would have in-depth knowledge on the various options out there. The Pension Authority have some pretty useful information and resources on PRSAs which you can check here: www.pensionsauthority.ie/en/prsa_providers/prsas/ - Cian
Hey lads, not specifically around anything in this vid but just wondering with the bed and breakfast rule, if I sell VUSA to realise some gains, I know i need to wait the 30 days to buy it again BUT could I just buy another ticker that tracks the S&P500 like VUAA straight away? Technically they are different things but track the same underlying index so I'm unsure!
Hey Jason, cheers for the question - its a good one. First of all, we're still waiting for direct confirmation from revenue about the 30 day re-purchase rule when you're selling for a gain (with the intention to then repurchase). You may have watched our B&B video, so just want to caveat that first. They've been v slow to respond to us, and the resources online about what the rule actually is, are mixed. Revenue responded to me yesterday saying they had passed it on to a 'senior official' to review further, so will keep you posted. If we take the guidance of selling at a loss (again, not apples to apples but close enough) there is reference made to 'shares of the same class'. My understanding is that VUAA and VUSA would fall under the same class, given that they both track the exact same index. Given this info, my assumption is that you couldn't just buy the other (although could be worth verifying as would be a nice loophole!). On the other hand, selling Tesla for example, and buying VUAA would unlikely break the rule, despite Tesla being a component of VUAA. Again, my assumption - would need to confirm. Just on a purely rational level, this is what would make the most sense to me! Let us know your thoughts. - Ste
@@TheLearningsReport Cheers Ste, yeah I watched that vid alright it was very helpful! Yeah that makes total sense to me and it is very likely that it's the case that they would fall under the same class, seems like too obvious of a loophole to exploit as there are so many different ETFs you could switch around to which track the S&P500. Looking forward to when you hear back from Revenue regarding the issue as yeah there is far too much conflicting information online about the rule. The fact that you can't offset losses on ETFs against your gains on other ETFs is restrictive enough as it is, it would be nice if I'm after uncovering a glitch in the matrix but I'd imagine the case is accounted for, just needs to be communicated & documented better by Revenue.
Yeah, well said - and I'd be in agreement! Really don't understand why the ETF rules in Ireland are so prohibitive. Just seems counterintuitive in terms of trying to encourage average retail investors to get involved in the markets. Will keep you posted and cheers again for watching! - Ste
@@james1187 hi James, no update as of now. We are looking to get a tax adviser on the show to answer this and many other unclear tax questions. We'll comment here as soon as we know. 👍
Just wanted to thank you guys for these videos! They are very helpful for someone like me who has no background in finance. So great work and keep it up guys!
Well done guys! You covered the key points there! You mentioned ETFs a few times but did not say what they are. Financial Services is full of abbreviations which we become familiar with when working in that area but for your average investor I have shown below the Google definition:
ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours-potentially lowering your risk and exposure, while helping to diversify your portfolio.
Thanks Derek! We have a video on ETFs also (linked below) but thanks for taking the time to jot down the definition here - helpful for others to reference when they come across this vid. Nice one and cheers for watching.
th-cam.com/video/InfLTMTllg4/w-d-xo.html
- Ste
Great video guys, amazing to have high quality content specific for Ireland!
Thanks, Giovanni! Appreciate you watching and the kind words.
- Cian
Fantastic video lads, love the pros and cons list! The tax incentives are fantastic, lot of folks don’t take advantage of a pension fund early enough in life!
Always tricky trying to look that far ahead, but certainly some big benefits! Cheers for watching 👌
I'm doing some pension research for a friend of mine and am delighted to have come across this ROI specific channel and its great content. Thank you. However, live in the north of the island and am horrified to hear about "deemed disposals" on ETF's and 41% tax rates even if you don't sell. That's daylight robbery! Odd that the unionists would put flags and anthems at the top of their objections list in a border poll!
Nice video lads. Only started my pension in 2015 in my mid 30's, but started adding AVC's and it is the best way to save for the future!
Fair play, Adam! When you consider you likely still have a good 30 years of work left in ya, that's some considerable compounding power :) Hopefully your investing returns allow you to pack it in a bit earlier than that so that you can enjoy the fruits of the labour!
- Ste
@@TheLearningsReport cheers man.
@@adam_williamk8280
Saving is great and everybody should be doing it the younger a person starts the better. Investing should also be part of a persons future plans as well. If you invest 20% of your savings that can then be a large lump of money on top of the saving.
A person in Ireland with a median income can retire a millionaire and also carry that investment on when they retire so as to have money 25 years after retirement as well.
Thanks for sharing it.
You're more than welcome.
Great video guys! Thanks for making everything so clear. My wife is a nurse in the HSE. How does her public pension work?
Cheers! Just to check, is she on the HSE Superannuation scheme do you know? Or something else?
- Ste
@@TheLearningsReport I don't think so. She joined the HSE in 2020
@@AllTheJCs most likely she is on the Single Scheme. All public servants joining in recent years are on this. Each year she works in the public service she will accrue a "referable amount" to her lump sum and annual pension. These referable amounts are added together and paid in addition to the state pension, on reaching state pension age. Each public sector employer is supposed to send an annual statement listing her contributions and referable amount, many don't though. She should ask her HR for it. It's required under a circular from PER and maybe even the legislation establishing the scheme (I'm not sure)
You lads are awesome! Really proper content, nicely done and quite easy to digest. Not sure if this is the right place to ask. But I will give it a try. I get that the company pension (P Pension/E Pension on payslip, 5%/5%) is not the PRSA, right? Since that is the case then I don't need to fill in the "Personal Retirement Savings Accounts (PRSA)" under "Your Job"on the Form12-Income Tax Return? Can I get the tax return on the Company Pension? If yes, then how is it done?
If this is not the right place to ask, then where would you recommend to get the answers, help etc ? Thanks!
Hey Krzysztof - Sorry for the late reply on this one.
So yes, unless you signed up for a PRSA yourself, then your assumption is likely correct.
With pensions, in can be quite 'company specific', so I would suggest speaking with your pension administrator in work (likely someone in HR or Finance departments) or if its a smaller company, perhaps speak with your boss directly?
They'll be able to offer you more specific guidelines in terms of what has and what has not been deducted.
Sorry we can't be of more help!
- Ste
Thanks for the info guys. Could you please explain the cost/fees of early withdrawal from a pension fund when company is matching your contribution? Thanks in advance!
Hey Lorena - it really depends. You'd need to speak directly with both your pension provider/employer. In many cases, you're simply not able to cash it in early. In some scenarios you can, but you'll be taxed on the full amount without any of the tax breaks that you would've received per the plan itself.
- Ste
Great content lads! I'm looking to set up a directors pension from my limited company in Ireland and invest in an ETF. Can you cover this in a video as i can't find much information online about this.
Hey John, cheers for that. Nice one for the suggestion, and a good one also. We'll add it to the list! Anything in particular you'd like us to focus in on or just a general overview?
Great idea John…. Very inspiring ! Please let us know how that worked out :)
Revenue is so useless for information like this, your video was so informative for 20 year olds like me TT TT Life savers for real! To clarify, so any contributary pension schemes have to be arranged through your employer?
Hey Victoria - thanks for the positive feedback! Not necessarily, as you can set up a PRSA regardless of your employment status. Unless I've misunderstood your question? 🤔
Are ARF pensions inherited by unmarried surviving partners really taxed @ 73% (33%IHT+40%IT)? Revenue taking more than the beneficiary is entitled to strikes me as grossly unfair.
Any thoughts on utilizing self administered pensions to buy property? CGT is zero when you go to sell which is attractive. Financial advisers advertising this service promoting local authority long lease to safe guard the renting out of the property and take out the hassle. Would love your view?
Hi Angela - Sorry for the delay in getting back to you on this. Hectic week! Your comment was also quite timely, as there was an article in the Irish Times which basically addresses your exact question (not sure if you saw it, but ill link below).
In short, I'll be totally honest and say my knowledge is limited when it comes to SSAS. I've always considered the idea of investing in property through a pension, but hadn't actively pursued it as my capital focus at the moment is more on in equities. I'm curious though, is your reference to the 'local authority long lease' referring to the social housing investments mentioned in the Times article?
All in all, definitely something we need to delve into a bit more. Would love to hear your own experiences with SSAS and what your own plans are in this regard!
Cheers for the comment and for watching.
- Ste
Times article: www.irishtimes.com/life-and-style/homes-and-property/why-buying-a-property-with-your-pension-just-got-a-lot-harder-1.4604953
Any update on how staking rewards from crypto is taxed? Keep up the good work lads!
Tax? For crypto ? Lost my crypto in a boat accident
Nothing solid yet, Kev - we'll probably end up doing a rough guideline video based on the limited info thats currently available, and then hopefully elaborate on it in a future video as more info comes through.
I (Ste) am in the same boat as you, receiving staking rewards, but still unsure where we stand. Will keep you in the loop! Hoping to chat directly to revenue about it, but they've been very slow responding (likely because they don't know yet either!)
Haha
Thanks for the info, thinking of moving home and I’m looking at continuing my investments.
Can you do a self directed option?
You pick the stocks ETFs with the dividend % you want like SVOL at 16% or VOO in the S&P500 or its equivalent for example.
That’s the only way I would do something like this or you will end up with 5-6% or you pay a ridiculous 41%.
Is there a retirement fund option on 212 or resolute, or another option.
Thanks 👍.
I'll be bringing in about $80000 in pension and social security from the United States.What would my tax liability be here?When I retire do you know
How to withdraw early?
Good informative video, and I'm happy to pay into a pension fund but when I spoke to a broker I felt he was making it intentionally complicated to the point I didn't trust him. All I want is a tax brake and something akin to a 401k as in the USA, not a fixed income for me dependant on how long I live.
Hey John,
Thanks for watching.
Do you mean tax breaks on payments into the pension?
Yeah, some of the terminology is confusing for sure (if you have any qs on that let us know). Might be worth talking to some other brokers to get more opinions as I believe most give free consultations. Also sharing a guide here on types of pensions in Ireland, long read but could be helpful to skim through before you chat to another broker:
www.pensionsauthority.ie/en/employers/checklists_and_guides/what_are_my_pension_options_.pdf
- Cian
Thanks Cian, I figured it all out in the end, but the upshot was, if I put 200 a month away for the next 15 years till I retire, I will get 100 a month annuity, even with tax breaks that isn't worth it. I think I will invest in crypto instead,
@@johnrodgers2018 Nothing stopping you changing your mind again down the road as you learn more and your situation develops. Best of luck!
@@TheLearningsReport thanks, learning lots here, reading up on pensions and maybe somewhere out there there is a better deal. P2p lending seems to be really working for me, keep up the good content!
Thank you for the video! I've seen very expensives pensions providers! More than 2% per year and this is a lot. Do you have any video about providers? Thanks a lot
Hey Didi,
Thank you for watching the video!
We don't have a video looking at individual pension providers, unfortunately. Are you looking to invest in a private pension for yourself or do you have any option through a company?
It might be worth talking to a pension broker to filter out all the noise of various companies trying to sell you their pensions. Plenty of companies offer these services in Ireland and you can most likely get a consultation for free.
Let us know how you get on!
- Cian
Hey Didi, Ste here - just wanted to add a small follow up to Cian's comment! We'd be interested to hear which pension providers you were looking at - we could definitely look at doing a video review of the market leaders that are available if our audience were interested 👍
Very informative curious to know your ages and net worth
Thanks for watching, Cian!
We're both in our late-20s but I don't to want to share net worth. 👍
- Cian
Thanks for the video, it’s very insightful, I have a question, how much time one should work in order to get a decent pension, is there a number of years to have the rights to receive a pension, or there is an specific amount of money, that one gather over the years that gives the right of receiving pension? Or it doesn’t matter. We wanna move to Irland in the near future, and we are in our forties, will appreciate your answer. I’m a physician and my wife is an accountant. Thanks again.
Hi Lads great video thank you. I am 58 and my wife is 52 and we have both been self employed most of our working lives- are we to late to start investing in our pensions?
Yes its a bit late now
Superbly described. Fantastic guys.
Can I ask if I leave the country before retirement, can I withdraw the pension amount?
Appreciate the positive feedback, cheers for that!
Depending on your pension provider, you may be able to withdraw your contributions but you may need to deal with some backpay of taxes (and potentially an early withdrawal penalty also). Chat to your finance department/pension provider and they'll be able to give you some more info!
- Ste
Can you have a pension with revelut?
Not at the moment as far as we're aware - but would be surprised if they didn't start venturing into the space at some stage!
Ok ,any suggestion of private company to invest for pension?
Unfortunately we can't really offer advice in that regard! But the two links below will at least give you some options to look into. Hope this somewhat helps :)
www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/personal_retirement_savings_accounts.html
www.pensionsauthority.ie/en/i_want_to_start_a_pension_prsa/prsas/prsa_providers_and_products_register_-_january_20221.pdf
Correction, the contributory state pension is NOT means tested. Only the non contributory state pension is means tested
Good catch - Thanks for the note 👍
Do you add your pension to revenue under “jobs/pension” or under “tax credits relief”? Thank you
Hey - which form is it that you're currently filling out? Form 12?
My previous employer said that 5% contribution for pension is mandatory even I don't want to choose that. Is that true?
Hey Mateusz,
Is your employer saying that pension contributions are mandatory in general or that the 5% is?
Either way, neither are a legal requirement - you are not obliged to contribute to a pension and if you do, there is no % you have to contribute.
Within a company, the rules may be different. For example, to get a matching contribution from the company, you may have to contribute a minimum %.
I would check with your employer exactly what they mean about it being mandatory. 👍
- Cian
@@TheLearningsReport I know pension state is mandatory but they said I need contribute 5% of my salary to private one and there is no option to not join this scheme
@@mateuszgralak OK, that sounds like a company requirement as there is no obligation to pay into a private pension. I would get some clarity from your your employer.
- Cian
Hi, great video. can you tell me if the pension relief is taken as a percentage from my gross salary? I am 42 so its 25%. Thanks
Hi Simon,
Glad you found the video helpful.
Yes, it is based on your gross salary. And as you said 25% from ages 40-49. Your gross salary is capped at €115,000 for this relief. And this is across all of your pensions if you have multiple.
More details here: www.revenue.ie/en/jobs-and-pensions/pensions/tax-relief-for-pension-contributions.aspx
Hope this helps, any questions let us know!
- Cian
Fair play lads! Great video!👍👍
Hi,
any standard prsa plans that have etf available ,with less management fees?
Can we swing trade between etf in a prsa plan?
Iam self employed for pension purposes😢😢😢.
Again great video lads!! I have a question:
If a foreign national decide to contribute to pension at the age 30 and unfortunately has to leave Ireland at the age of 40 then what will be the penalty percentage if he/she wants to withdraw the money before going back to the home country?
Hey Bedanta - That's a great question, and I'm not 100% sure on how that would go. My guess would be that it would come down to your pension provider, and what their rules are. It would also depend on the type of pension too. My suggestion would be to check with your pension provider, and then also do some research on the tax liability (either pension provider or revenue.ie should hopefully offer some guidance on that!)
Sorry I can't give you a more solid answer!
- Ste
@@TheLearningsReport no worries Ste and thanks for you help. Much apprised !!
@@bedantasaha5699 did you get a answer for your question?
What's the story with taking money out early? Thanks
In short, it depends on the type of pension and your pension provider. This Irish Times article gives a great breakdown of some of the scenarios (it's behind a paywall, but use the €1 month trial).
www.irishtimes.com/business/personal-finance/can-i-cash-in-my-pension-early-rules-and-exceptions-explained-1.4545712
Also, the journalist, Fiona Reddan, has done some great investing pieces that are worth checking out regardless! Just fyi 👍
@@TheLearningsReport thanks for your reply
No bother!
Hi guys I'm currently paying into a company pension scheme and there is no sign of it on my revenue do I fill in the section of the f12 form
Hey Richard,
Is the pension deducted at source? I imagine so if it is a company scheme. Do you see it deducted on your payslip? I would contact someone in payroll to understand how this is reported as I believe it should show up on your pre-populated form.
Or are you paying outside of your employer? If so, then you should include it on your form 12.
You can check out our video on Form 12 here: th-cam.com/video/x4QVvH8DjM4/w-d-xo.html
- Cian
Hi yes I see it deducted on my payslip each month just no sign of it on my revenue report it's deducted at source
Basic question but...for a company pension where the company match contributions, is that actual fund separate from your PRSA? And if so, what happens when you switch company?
Pensions are linked to you so they carry when you switch jobs.
I am 34 and in higher tax bracket. I maxing out pension with AVC since last 4 years. I don’t have other investment as it is taxed heavily. Is it wise to max out pension. Fund I selected is 100 % equity as I can take risk because of my young age. My office says you can access pension from 51 age. I am confused, you saying 60
Very interesting video, thanks!
Can you please tell me more about the deemed disposal? Say I hold an ETF for 16y, will I need to pay twice 41% and then another 41% when I sell? Can't be right
Thanks Massimo!
With deemed disposal, every 8 years you will will be liable for tax at 41% on any gains in the preceding 8 years. So yes, in a 16 year period this would happen twice. Whenever you actually dispose of (sell) the ETF, a tax credit is given for the tax paid on the deemed disposal. If the ETF subsequently falls in value and you cash it in , you can submit a claim to the Revenue for overpaid tax due to deemed disposal.
Have you watched our video on ETFs yet? We go into a bit more detail there!
th-cam.com/video/InfLTMTllg4/w-d-xo.html
@@TheLearningsReport thanks a mil for the answer, so when I actually sell, will pay tax on the difference only. Got it!
Yessir!
To avail of the tax benefits does the pension sum have to be deducted at source by employer? Or can payments be made privately and claimed through revenue online? Thanks
Hey Darran,
Great question - you can claim through Revenue when you file your tax return, either form 11 or form 12 depending on whether you are a Chargeable Individual or not.
More information here: www.revenue.ie/en/jobs-and-pensions/pensions/tax-relief-for-pension-contributions.aspx
Form 11 step- by-step guide:
th-cam.com/video/15fgO8-8o6g/w-d-xo.html
Form 12 step- by-step guide: th-cam.com/video/x4QVvH8DjM4/w-d-xo.html
- Cian
@@TheLearningsReport thanks!
Hi I have a question I am thinking about starting a personal pension when researching I see the the main Pension provider's in Ireland charge around 1 to 1.5% for annual management fees. I am going to put my pension in a passive index fund like S@P 500. I see in UK with the likes of Vanguard investor UK ,pension management fees are about 0.15% . Is there anyway of starting a passive pension fund in Ireland with low management fees, Vanguard don't appropriate in Ireland as far as I'm aware.
Hi Darren,
Thanks for the question.
I think what you are looking for is a Self-Directed Pension / Self Invested Pension Plan.
These give you control over what you invest in, however, I think you still will need to appoint a pension administrator and imagine that the charges won't be cheap in Ireland. The initial set up charges are supposed to be expensive, however, you could potentially earn better returns than a regular pension fund.
It might be worth talking to a pension broker to understand your options better. Usually you can get a free consultation so no harm in setting one up and checking whether it's right for you.
Here's an old article that explains some of pros and cons: www.irishtimes.com/business/take-a-more-direct-approach-to-your-pension-1.945602
And also sharing another article here from one of the Pension providers as an overview: moneycube.ie/start-a-pension/self-invested-pension-plans/
- Cian
People focus too much on fee's and it puts many off from investing and compounding their investments over a period of time.
While you can add that 1.5% up and sweat over the cost you cannot get anything while you do not start the process.
Hi guys, I'm 19 and working part time, currently keen to open a pension account asap. Do ye know which companies i should consider setting up a prsa account with? I would like one with a high returns record and which allows me to choose which funds/stocks i invest my pension funds into. Thanks!
Hey Amk,
Great to hear that you are getting started so early - the best thing you can do for any investing.
So, I'm not too familiar with all the various PRSAs (rates and options) but what I would recommend is chatting to pension broker as they would have in-depth knowledge on the various options out there.
The Pension Authority have some pretty useful information and resources on PRSAs which you can check here: www.pensionsauthority.ie/en/prsa_providers/prsas/
- Cian
@@TheLearningsReport Thanks!
Hey lads, not specifically around anything in this vid but just wondering with the bed and breakfast rule, if I sell VUSA to realise some gains, I know i need to wait the 30 days to buy it again BUT could I just buy another ticker that tracks the S&P500 like VUAA straight away? Technically they are different things but track the same underlying index so I'm unsure!
Hey Jason, cheers for the question - its a good one.
First of all, we're still waiting for direct confirmation from revenue about the 30 day re-purchase rule when you're selling for a gain (with the intention to then repurchase). You may have watched our B&B video, so just want to caveat that first. They've been v slow to respond to us, and the resources online about what the rule actually is, are mixed. Revenue responded to me yesterday saying they had passed it on to a 'senior official' to review further, so will keep you posted.
If we take the guidance of selling at a loss (again, not apples to apples but close enough) there is reference made to 'shares of the same class'. My understanding is that VUAA and VUSA would fall under the same class, given that they both track the exact same index. Given this info, my assumption is that you couldn't just buy the other (although could be worth verifying as would be a nice loophole!). On the other hand, selling Tesla for example, and buying VUAA would unlikely break the rule, despite Tesla being a component of VUAA. Again, my assumption - would need to confirm. Just on a purely rational level, this is what would make the most sense to me!
Let us know your thoughts.
- Ste
@@TheLearningsReport Cheers Ste, yeah I watched that vid alright it was very helpful! Yeah that makes total sense to me and it is very likely that it's the case that they would fall under the same class, seems like too obvious of a loophole to exploit as there are so many different ETFs you could switch around to which track the S&P500.
Looking forward to when you hear back from Revenue regarding the issue as yeah there is far too much conflicting information online about the rule. The fact that you can't offset losses on ETFs against your gains on other ETFs is restrictive enough as it is, it would be nice if I'm after uncovering a glitch in the matrix but I'd imagine the case is accounted for, just needs to be communicated & documented better by Revenue.
Yeah, well said - and I'd be in agreement! Really don't understand why the ETF rules in Ireland are so prohibitive. Just seems counterintuitive in terms of trying to encourage average retail investors to get involved in the markets. Will keep you posted and cheers again for watching!
- Ste
@@TheLearningsReport Any updates on the 30 day re-purchase rule?
@@james1187 hi James, no update as of now. We are looking to get a tax adviser on the show to answer this and many other unclear tax questions. We'll comment here as soon as we know. 👍
My god this is so confusing