What WE Do
Pension Planning & Retirement
Personalised Pension Planning
We review and improve your pension plan.
At Baggot, we specialize in crafting personalised pension plans for high net-worth clients, aimed at realizing your envisioned retirement lifestyle.
Our process involves a thorough analysis of your retirement objectives, an assessment of your current financial standing, and the development of a strategic investment approach. Pensions are a major tax efficient vehicle to providing wealth in retirement, therefore, it is vital your investment strategy is structured to maximise allowable benefits.
As retirement nears, we assist you in transforming your savings into a reliable income stream, guiding you through options like tax-free lump sums and setting up an Approved Retirement Fund (ARF) or Annuity.
Baggot does not charge an administration fee for this transition, a huge saving for our clients compared to other brokers. On a standard pension pot of €500k the saving could be as much as €15,000.
The Correct Pension For You
Most companies provide an occupational Pension Plan. And in many cases, they will contribute to your pension fund alongside contributions from you. This is known as a Defined Contribution Pension. You are restricted to funding limits which are a percentage of salary based on age.
For many business owners and individuals, a PRSA pension is an alternative. Funding limits are less restrictive and offer tax efficient solutions to executives whose businesses have excess cash balances.
Pensions are complex so at all stages it is advisable to have a plan in place, so you maximise your benefits.
At Baggot we are here to help.
Buy Out Bonds (BOB)
In many cases individuals have legacy pensions from previous employments. You can take control of your pension pot by transferring it via a Buy Out Bond (BOB). This allows you to change the investment manager and with Baggot you get a wider range of investment options.
The BOB will remain ring fenced as it was an occupational scheme, so you cannot contribute addition funds or amalgamate with other pensions.
At retirement all your pensions are assessed as one for lump sum purposes and the balance is amalgamated into an ARF or Annuity.
Post Retirement Options
At retirement you are entitled to a 25% lump sum of your total pension funds maximum amount allowable is €500k. Up to €200k is tax free and the next €300k is taxed at 20%.
With the balance you have two options:
- Invest in an ARF (Approved Retirement Fund). You are required to take an annual income of 4% up to age 71 and 5% thereafter. It is important the ARF is invested with a focus on replacing the income taken and a stability in returns. It is not a time for high risk. Funds remaining in the ARF after dependants are deceased is an inheritance.
- Purchase an annuity. You hand your fund to a Life Insurance Company for a guaranteed income for life. When you and your partner die the payments cease so there is no inheritance.
Whether you choose an ARF or Annuity is a decision best taken with financial advice.
Experience the Baggot Difference
Personalized Pension Plans.
We understand that each individual has unique financial circumstances, retirement goals, and risk tolerances. Therefore, we design a retirement strategy that aligns with your specific needs, ensuring a retirement plan that is as unique as you are.
Decades of Experience.
Our history is marked by successful pension planning for a diverse range of clients. We pride ourselves on our ability to deliver tangible results, reflected in the robust returns and financial security we've secured for our clients over the years.
Proactive Management.
Our proactive approach to pension management ensures your pension strategy is regularly reviewed and adjusted, keeping it aligned with market changes and personal life transitions.
Focus on Tax Benefits.
We prioritize tax-efficient strategies in our pension planning to maximize your savings and benefits, helping you keep more of your hard-earned money for retirement.
Exceptional Service.
At Baggot Investment Partners, client satisfaction is our main focus. We dedicate ourselves to providing exceptional service, ensuring a smooth and stress-free pension planning experience.
Transparency & Trust.
We believe in maintaining open and honest communication with our clients, ensuring you are always informed and comfortable with your pension planning decisions.
Interested?
Pension & Retirement FAQ
What is a pension in Ireland?
A pension in Ireland is a savings plan that provides income after retirement. It’s designed to help individuals maintain their standard of living once they stop earning a regular salary. Pensions in Ireland can come from PRSA, private plans, employer contributions, or state benefits.
Who can get a pension?
In Ireland, pensions are available to most individuals who have contributed to a pension scheme. This includes employees with employer pension schemes, self-employed individuals with personal pensions, and residents eligible for state pensions, typically upon reaching a certain age.
How do I start a pension?
To start a pension, you can set up a personal pension plan through a financial advisor like Baggot or start a PRSA. We are happy to consult you and help you choose the best option based on your employment status and financial goals.
What should I contribute to my pension?
The contribution to your pension depends on your income, age, retirement goals, and the type of pension plan. A general guideline is to contribute a percentage of your base salary that, when combined with the any other retirement income, supports your prospected lifestyle post-retirement.
What are the tax benefits of a customised pension plan?
Customised pension plans in Ireland offer significant tax benefits. The specifics can vary based on the type of pension plan and individual circumstances. But if you go with us, we’ll guide you through the complexities of the tax-jungle.
Still have questions?
If you would like to explore the various pension opportunities available you can avail of a free financial review with Peter Brown. This is a “No Obligation” review of your existing investments and pension arrangements to establish if there are any untapped opportunities that could improve your financial position.