Income protection for a stay at home parent

As is the case of income protection in many families throughout the country, one parent will stay at home to look after the house and children while the other becomes the main income provider.

We are all aware of the financial difficulties that would ensue should the main income earner fall ill however, not many people think of the financial impact should the stay at home parent become ill.

Income protection is Vital for the Homemaker

The fact is that the homemaker is a vital cog in the running of the family and home and even though there is no income being generated by the stay at home parent, the financial impact of this person becoming ill is no less than if the main earner was to become ill and be unable to work.In which case income protection is vitally important.

Think of the costs that may suddenly have to be paid in such an event:

-          Medical bills

-          Childcare

-          Cleaners

Often, the main earner will have to reduce the hours they work in order to look after the children’s needs such as getting to and from school,  after school activities, clothes and food shopping and many more besides. In this situation , not alone are there increased expenses but you could find that the family earnings have decreased also.

The good News!

It is Possible to place Income Protection on the Homemaker?

It is possible to put in place an income protection policy that will provide a replacement income for a homemaker should they fall ill.

This income can then be used to cover the essential expenses that have to be paid while the that person try’s to recover.

The amount that can be insured is limited but is designed to provide enough to cover to assist with the sudden financial shock that would undoubtedly occur. That is why income protection should not be over looked.

By Johnny McNamara, Director, MCN Associates

In order to build wealth it is vitally important that you put plans in place that will provide for your future needs both in the short term and in retirement. However, very rarely do people put adequate plans in place to ensure that their future needs are covered. Pension planning is a key component in providing for your future however, with all of the uncertainty that has been created in recent times, many people are now shying away from contributing to pension.

Once you break the habit of contributing to a pension on a monthly basis it is often hard to restart as there will always be some other need that comes up to cause you to delay. This is undoubtedly going to create a crisis in future years where the State will be under pressure to provide the old age pension.

To make matters worse, those people who are early in their careers and possibly have the greatest need to plan for their retirement and build wealth may not be contributing at all. The main reason for this is due to cash flow worries and fear of what the short term future holds

The most efficient ways to build wealth and provide for your retirement

While pensions are the most efficient ways to build wealth and provide for your retirement due to the tax relief, the fact that the pension is locked away until retirement means people naturally worry that they will need to get access to money before then. These are reasonable fears to have given the uncertainty in the economy and the rising costs of things such as children’s education however there are ways to manage this.

A great way to overcome this problem, is to start a savings plan in to which a regular monthly contribution is made.

Savings plans work in very much the same way as a pension plan in that you can invest in much of the same funds and on a very similar low cost charging structure. Therefore you will be able to take advantage of growth and the compounding effect of having the money invested just like you would through a pension.

Obviously you don’t enjoy the tax relief that you would with a pension contribution but neither are you taxed in the same way on accessing the money. The savings plan allows build a fund just like you would with a pension but the fund can be accessed in the short term.

It also means that you are not missing out on the years of investment that are so crucial to build wealth and fund for your future.

The savings plan allows you to get in to the habit of putting money aside each month while building a fund that can be accessed in the short term if and when the need arises.

The saving plan allows you to Build Wealth and plan for your future

Once you get used to having this regular amount of money going out each month it is then far easier to, at a suitable time in the future, redirect the money to a suitable pension plan and take advantage of the tax reliefs. This will mean that you have your short term needs covered through the funds in the savings plan which allows you to start providing for your longer term objectives.

By planning in this way, it will have addressed a number of areas which are key to planning for your future:

-          You will have become used to putting money aside each month.

-          You will have taken advantage of the compounding effect by having your money invested in the same assets as a pension.

-          You will have provided for any short term needs that may arise in the short term.

-          You will be building a fund for your retirement.

Please feel free to contact MCN Associates at any stage and we will be happy to assess your own situation and put together suitable plans for you and start to build wealth for your future

Managing your wealth in the face of uncertainty

By Johnny McNamara, Director MCN Associates

Over the past 12 months I have had many people contact me wondering how they should manage their wealth given the uncertain future of the Euro.

Most of these people have been desperate to manage your wealth and have been looking at all kinds of solutions. Some talked about moving all of their money to other currencies, others talked about moving their money to foreign bank accounts and one lady even told me how she had buried a large portion of her money such was her fear.

Given this backdrop of panic, It is important to step back from the doom and gloom headlines and look at the effects of your decisions and how you can manage your money in this time of great uncertainty.

Firstly, it is important to note that I do not believe that the Euro will disband. Even if it were to break up, it would most likely take years to unwind intricate capital markets currently dealing in Euros. Any currency break-up would, in my opinion, require a lead time to allow industries and markets to adjust and avoid the global melt down that would follow a sudden collapse.

Managing your Wealth if the Euro was to disband

If the Euro was do disband what effect would that have on those of us living in Ireland?

If this were to happen, there would have to be a new unit of currency created in Ireland, presumably we would revert back to Punts. The value of the Euros you hold would then have to convert in to the new units at the specified exchange rate similar to what happened when the Euro was first introduced.

Likewise, the value of your debts and assets would also be converted/valued in the new units as would the units that you get paid your wages in. The net result is that your buying power should remain relatively unchanged.

You can argue that the cost of importing foreign goods and raw materials will increase given the likely devaluation of the Irish currency thus pushing the price of goods and services.

While this may be true to an extent if there were break up in the Euro, other countries would also revert back to new units of currency.

While the value of the new units may depreciate against other stronger currencies this may not be the case against other currencies. So while the Irish Units may be weak against say a new Deutschmark that would not necessarily be the case against other units of currency such as a Lire or Peseta. In fact some would argue that a new Irish currency would remain relatively strong compared to other countries new currencies given the debt levels in some of these countries.

“My friend has transferred all of their money to another currency…..”

Managing Your Wealth in a Foreign Currency

Let’s look at the idea of moving your money in to a foreign currency and how this may affect you.

By transferring money from Euros to another currency at this stage you will immediately be faced with exchange rate fluctuations that may instantly devalue the money that you are looking to protect.

We need only look to the devaluation of the Swiss Franc during the summer of 2011 which saw the value drop about 8% overnight to see how the value of your holdings could be impacted.

I would see the transferring of your wealth in to other currencies as engaging in currency speculation which is high risk by nature.  It is an immediate and real risk that you would be taking on which may prove far more costly in the long run.

The simple fact is that, at present, if you live in Ireland in order to buy goods and service you will need to use Euros. Therefore, before you can spend you must have Euros in your possession.

Where your money is not held in Euros, you will need to transfer your funds back to this currency. This not only incurs transaction costs but also leaves you open to the volatility in currency markets.

So what should I do with my money / savings?

The answer to this is that it will depend on your own needs and circumstances. The most important thing for you right now is that you need to make informed decisions and look at the possible risks and outcomes from your decisions. Too often I find that people are influenced by casual conversation with friends, acquaintances and even what they over-hear in bars and restaurants. This is very much like the concept of Chinese whispers where the truth is often exaggerated for effect. The right solution for you can only be explored and found by engaging with a Financial expert such as MCN Associates where a holistic approach can be taken assessing your needs, goals and objectives.

Only from this and informed logical decisions be made to suit you.

If you would like to discuss your needs why not ring us today on  353 1 230 9000 and we will be delighted to help you manage your way through volatile times.

Protecting your pilots income.. have you ever thought about what would happen if you were unable to fly due to an illness or injury?

Would you be able to pay your mortgage and other household bills?

Would you be able to maintain your lifestyle of holidays / eating out, things that we would normally take for granted?

Protecting your Pilots Income is a must!

The biggest asset you will ever have is your income!

In the past pilots have been unable to get income protection insurance in Ireland. This has now changed.

MCN Associates have developed an Income Protection policy specifically for pilots.

Protecting your Pilots Income allows you to insure up to 100% of your income.

Our income protection policy allows you to insure up to 100% of your income. The policy will pay out

after a deferral period of 28 days and continue to pay for three years. If, after three years you are

unable to return to work as a pilot you will receive a lump sum payment.So why don’t you be smart about protecting your pilots income

For more information please contact Julie McNamara on 01 2309000 or julie@mcnassociates.ie

We are all aware of the need to put money aside for our pension funds however it is often difficult to manage your current cash flow needs with our long term needs. Combine this with the introduction of the new Government levies, proposed reduction in tax reliefs and poor performance, the net result is that more and more people are coming up with excuses not to contribute in to their pension funds. This is a worrying trend and so it is therefore important to examine the facts of the matter when it comes to you pension funds and its importance in your overall financial planning.
A lot of people are unaware of how little the State pension funds actually provide you with in retirement. If we look at a single individual earning €60,000 pre-retirement who is planning to live off the State pension in retirement, they would see a drop of 80% in their income! How could you cope with such a dramatic drop in your income levels?

We must also examine whether the State will even be able to provide benefits at the current level when you come to retire. At present there are 6 people in employment to support every one person receiving the state pension.
However by 2050 it is projected that this figure will drop to only 2 people supporting each person receiving the State pension. You can immediately see that this situation is not sustainable and changes to the State Pension Funds will have to be made before then. We don’t know what these changes may be but it is unlikely that they are going to be positive for future pensioners. The importance of providing for your own retirement is therefore brought in to sharp focus to protect you against future negative changes.
The Good News!
Tax Relief:
At present the tax relief has remained unchanged and you therefore need to take advantage of this while you still can. If you pay tax at the marginal rate; every €100 invested in your pension only costs you €59. This still represents a very good deal and were it to be offered by any other investment you can be sure we would all be enticed!
Every little helps:
By making a concerted effort now to start/ restart your pension funding, it may have a dramatic effect on your pension in retirement. Recent figures released from Aviva suggest over a 30 year period that for every €1 a month that you contribute today may result in an in additional €3 in retirement income. You can see that even small amounts can have a dramatic effect in retirement. Often, through the engagement of a Qualified Financial Adviser you can find costs savings in other areas of your finances which can be then utilised to help fund your pension.

Markets can’t underperform forever:
Going through an economic downturn, it is often difficult to visualise a brighter future however history has taught us that economies go through cycles of boom and bust and while markets have been going through an extremely volatile period over the last few years this can’t go on forever. As pension funding is a long term plan, you have the ability to ride through these cycles and will hopefully provide a positive return. In fact, many would argue that markets are at a low ebb and therefore starting pension funding now may be a good time to gain from markets when they do eventually turn.
The world of pension funds can often be complicated and daunting which can lead to peoples reluctance to engage in the planning of their retirement. The problem is that burying your head in the sand can lead to far worse problems and unwanted surprises in retirement. The fact is that pension planning and pension funds is a necessity and the sooner you engage the better protected that you will be in retirement.

We need to decide what  wealth building is and what we are prepared to do to achieve it. Wealth building can start at any age and the earlier we do it, the more chance we have of gaining a lot more than we need.

Wealth building is created by governments and banks while for most of us can only hope that they will create a situation that is conducive to us getting a share. We all need to play our part as the more people work and produce, the more their native country can sell and the GDP (gross domestic product) will go up. It is for this reason that a country with high employment will be much more successful than one that has a high population but very few of them work for anything other than food.

Countries create wealth building that will be good for the citizens

Countries create wealth building that will be good for the citizens but it is also possible for an individual to create wealth building for themselves. It will be a different type of wealth found in certain parts of the world and what one person would consider a good lifestyle will not be the same for another. An African farmer may consider himself wealthy if he is able to feed his family and have a little left over for treats and education for his children. This would not be the same in the West as expectations are higher

Wealth building is when the money we are able to earn is more than the money we need to survive. This is true whether it is a country or an individual. As long as a country has a surplus of money and are able to look after those who will not be able look after themselves then they will be considered wealthy. If they cannot provide for the poorest in their community then they will find there are many problems.

Wealth building will be created when there is a product that is popular

Wealth building will be created when there is a product that is popular. The people selling it will be able to charge more and more therefore helping them to build their own wealth. A country can do the same with commodities such as coal and oil.

For some wealth may be a thing they do not have to work hard or sacrifice for. An invention can bring the inventor a great deal of money in a short period of time while for others it may take a lifetime of toil day after day. Tips for wealth creation will mainly be work hard and save and if you do this you should be successful
For more useful tips please vist our wealth building site

Article Source: http://EzineArticles.com/6554964

redundancy www.personaleconomy.ie

Redundancy is the Biggest threat to many people today

Redundacy is the biggest threat to many people today.The current downturn in the global economy has created an environment of ever increasing level
of threats to all of us. These threats are often outside of your control and therefore there is little or
nothing that you can do to stop them affecting you. However the degree to which these threats affect
you can be limited by taking ownership over the factors that you can control.

Identifying the threats to your Personal Economy is the first step in taking more control. For example
one of the biggest threats to many people today is the threat of redundancy.

Given the fact that we cannot control a redundancy, what can you do to manage your finances through
this threat?

The first thing that you can do is to act now and look to protect yourself against the threat of a
redundancy. At present, there are policies available that can provide you with a replacement income
in the event of an involuntary unemployment. There are also products, such as mortgage repayment
protection, that can cover your mortgage repayments in the event of redundancy. These products do
not pay out indefinitely but can help you to manage your way through a potential cash flow crisis in the
initial periods after redundancy.

Obviously there is a cost involved in taking out one of these policies so it is important to identify how
this cost may affect your current cash flow position, however, this kind of protection can help you get
through the initial stages of your redundancy and allow you the financial freedom to plan for the future.
In turn, by limiting the immediate effects on your cash flow, it can give you an opportunity to reassess
your career path and may also allow you the opportunity to re-skill for a new career.

If it is too late to protect yourself against the threat and you are faced with the reality of a redundancy
you need to understand all of the implications this has on your Personal Economy so that you can plan
the road ahead.

The tax treatment of a redundancy payment is the first area that you need to manage and control

The tax treatment of a redundancy payment is the first area that you need to manage and control.
There are a number of reliefs available to you on a redundancy payment which can help reduce the
amount of tax that you pay. The relief option that you choose is not always a straight forward case
of selecting the largest relief as in some cases you may be waiving your rights to a tax free lump sum
from your pension on retirement. So although you may receive more now, you may be forfeiting a lot
more in the future. Therefore, selecting the appropriate relief is vital and it is important that you take
independent advice to ensure that the right decision is made.

There is also a further relief called Top Slice relief that is available to you in the year of redundancy.

Many people tend to overlook this relief due to that fact that you can only claim it at the end of the tax
year. In many cases, by not claiming Top Slice relief people can miss out on substantial tax rebates. This
is valuable money needed to help you financially following a redundancy and could be lost if you do not
know how to claim it back.

The next area that must be looked at in the event of redundancy is the area of your pension. If you have
been in pensionable employment for a number of years, it is likely that you have built up a substantial
pension fund within the company pension scheme. This is a valuable part of your Personal Economy and
it is therefore vital that you make the right decisions in relation to this.

The event of redundancy can often result in an opportunity for you to take ownership and control of
your pension fund. In certain circumstances, it is now possible to take ownership of the fund that you
have built up within the company pension.

Ownership in this case does not simply mean giving you the ability to choose where your money is
invested pre retirement but also involves the ownership of the money post retirement.

In a typical company pension scheme, owning the pension fund post retirement is not possible as in
most cases you will be forced to buy an annuity or income for life. This involves giving away the fund
that you have built to an insurance company who will pay you a certain amount for as long as you live.
The key unknown in this equation is how long you are going to live?

A Redundancy can present opportunities for you

If, by taking ownership of the pension fund you can keep control of the total value of the fund, you now
open up new possibilities post retirement. It also means that you no longer have to give away your fund
to a third party but can now control and manage your asset in retirement.

By taking ownership of your pension fund you now have the ability to bring another part of your
Personal Economy under tighter control and possibly open up options that would not have previously
been available to you. Many times it can be the event of redundancy that opens up this option for you.

You can now see that even the event of a redundancy can present opportunities for you once you
manage your finances carefully. The key to managing your finances in any economic environment is
to take control and ownership of as many areas as you can. The more areas of your finances that you
control and own, the less of a threat the outside factors become.

If you are faced with or worried about redundancy or any other area of your finances please call
McNamara today and arrange an appointment 01 230 900

Or visit our main website for further advice on redundancy and other information  www.personaleconomy.ie

Your Personal Economy – You can Plan it! You can Control it! You can Understand it!

Whether it is the risk of redundancy right through to the tightening or credit lines there is no doubt
times are tough at present with many of us now facing in to our own Personal Recession. So In the
backdrop of this global economic downturn where we have all been affected in one way or another,
how can you take back some element of control?

Many of the factors that are causing these problems are outside of our control and as such we can
have little or no influence on them. However, there are factors in our financial lives that are firmly in
our control and it is these factors that we must plan carefully to ensure that we not only survive the
economic downturn but that we are in a position to thrive when we come out of this period.

How do we do this? Well we can look to Ireland as an example.
Ireland is a small open economy and therefore, we, as a country have no control over decisions taken
by the large economies of the world yet they have a very real and dramatic affect on the economy
as a whole. We need only look to the recent US sub prime crisis and the knock on effects we have
experienced for evidence of this. So what does the Government do to try and protect themselves in this
environment?

Well, every year the Minister for Finance produces an Annual Budget for the Irish Economy. This sets
out the financial plans, goals and objectives for the year ahead using the tools available which include
everything from increased tax rates to reductions in capital expenditure. The purpose of this is to ensure
that the economy remains in a stable, balanced position while also implementing strategies that can
create wealth for the country in the future.

So, even though there are many factors at play in the Global economy that the Government can’t
control, there are also many factors that they can control and it their responsibility to coordinate
these factors in such a way that we make it through Global downturns and prosper in periods of Global
stability.

How can this be applied to you and your finances?

We know that the decisions made by Government have a massive impact on our lives and even though
you can’t control it, you need to understand them and take the necessary steps to manage your way
through any economic environment.

We believe it is up to every individual to learn how to plan and control their own Personal Economy to
ensure that they are running as efficiently as possible and to be in a position to plan for future wealth
creation in the same way as the Government of a small open economy plans and controls.

Prepare Your Own Personal Economy Budget

How many individuals can say that they prepare their own Personal Economy Budget and implement
necessary strategies using the tools available to them?

Based on our experience very few people think of themselves in this way but rather continue to plan
their finances on a haphazard basis as a need or problem arises. In doing this we believe that people
can never fully maximize their efficiency nor will they be in a position to take advantage of any possible
wealth creation opportunities that may present themselves.

It is vital now that people take this holistic approach to personal financial planning and the key to doing
this is to understand what the factors are that influence your Personal economy and more specifically
what factors you can control and what factors have an influence but are outside of your control.

What are the elements that make up your Personal Economy?

Many elements of the financial world are outside of your control, however, the elements that can be
controlled must be managed and developed to maximum efficiency through careful planning and advice
driven decision making. There are a number of key elements that make up any Personal Economy.

Each of these elements are so intrinsically linked that it is vital that you understand the effect
of decisions made in one area can have on the next. We believe that you cannot separate each
of these elements when planning your finances but rather you must plan them as one entity –
your Personal Economy.

Cash Flow Management
Tax Planning
Financing and mortgaging
Investment Planning
Wealth creation and planning
Retirement Planning

The management of a Personal Economy will be different for every individual and will depend on a wide
range of factors specific to you. This is where the need for a competent qualified financial adviser comes
into play. We believe that through our holistic approach to tax and financial planning we can help you to
deliver a strategy that can put you back in control of your finances.

We have seen the implications of poor economic strategy and the ripple effect that this has caused
throughout the Global and Local economies and the knock on affects that this has caused on your
financial lives. This is a lesson that we can all learn from. It is vital that you take back control of your own
personal finances and implement strategies that protect you in bad times and maximize opportunities in
good times.

You need to start to think of yourself as a small open economy and use the tools at your disposal
to protect yourself and maximize your efficiency. It’s your Personal Economy, Plan it, Control it,
Understand it!

Please visit our main website by CLICKING HERE

By Johnny McNamara – McNamara & Associates

Call us today and arrange an appointment 01 230 9000

family business

Most business owners are too busy driving sales and developing business opportunities to take the time to look at the long term plans for their business succession planning. There are however key questions that every business owner should take the time to reflect on to ensure the long term future of the business while also planning your ultimate exit / retirement from the business.

The primary questions that need to be addressed are:

• Will the business be passed on to my family?
• Will I ultimately look to sell the business?
• Am I looking for the business to provide a living for as long as I’m alive?

These are very important question that every business owner should be asking themselves as the decisions made today may affect their ultimate goals. It is therefore vital that you develop your strategic planning to fit in line with the ultimate goal for the business.
Let’s take the three examples above and develop briefly, some of the issues that need to be looked at for each.

I intend to pass on the business succession planning to my family / children

The passing on of a business succession planning can become an expensive transaction if not properly managed as it can, in theory, lead to a big CGT liability. It is important therefore, to plan any such transaction carefully and avail of all the reliefs available to you.

One such relief that is very effective when transferring the business to the next generation is Retirement Relief. This takes the form of a relief from the CGT which arises on the disposal of certain business assets. The idea behind retirement relief is to preserve the value of family businesses passing from generation to generation.
Without this the survival of some family businesses could be compromised as a result of the cash or assets required to absorb a large CGT bill.

I am ultimately looking to build the business succession planning so that it can be sold to a third party

It may be your ambition to build your business to a level where it can then be sold to a third party.
If this is your goal it is important to structure your business in such a way that it makes it easy for potential suitors to buy.

For instance, it may be the case that the company owns the commercial premises out of which it operates. This may represent a problem for a potential buyer who may want to take over the business but for various reasons may not want to buy the buildings as part of the deal.
This may result in the buyer walking away from the purchase.

In order to overcome this you may want look to at setting your business up in modular form. This will allow you to package any sale to suit both yourself and any potential buyer.

I am looking for the business succession planning to provide a living for as long as I’m alive.

There are two things to consider with regard to this. Firstly, where you are the main driver for the business, illness may have a serious impact on the ability of the company to provide for the lifestyle that you are looking to maintain. Although you can protect yourself through insurance policies such as income protection, this may not always provide you with enough income replacement, particularly where you are currently tax planning your income drawdown.

Secondly, it is important that the company will be in a position to support your lifestyle where your ability to work in the business has diminished with age. To enable this you must ensure that you have established a strong team that can continue to drive the business going forward and develop a shareholders agreement to protect yourself and your future income.

There are a myriad of other issues that need to be looked when planning each of the above areas and your long term objectives. Therefore, it is vitally important that business owners take the time to assess their long term strategies. Once these have been established, CLICK HERE to develop plans with a suitable professional to manage the fulfilment of these plans in the most efficient and effective way possible.

There have been a number of changes in pension funding legislation in the last year that will affect the
retirement planning of high net worth individuals going forward. It is therefore important to know
how you are affected and how you can adapt your plans around these new changes.

So what are some of the changes that may impact you at this stage?

As part of the changes brought about in the Budget 2011, the standard pension funding threshold was
reduced from €5.4 million to €2.3 million. Although the Revenue did provide time for individuals
who had exceeded the new threshold to apply for a Personal Fund Threshold (PFT), this deadline has
now passed. Those of you with a fund in excess of the new threshold and who have not applied for a
PFT, will now be looking at a significant and unexpected tax liability on your pension fund when you
come to retire.

Whether or not you have applied for the PFT, where you have reached the thresholds, there is now
little incentive for you to fund for pension as to do so will see you breach your threshold and create
an excess in your pension fund. Where an excess occurs, this excess will not only be taxable on
retirement but it will in fact be hit with a form of double taxation.

Pension Funding Draw Down

How?
First of all the excess will be taxed at 41%, then, when you draw down the money, you will suffer the
usual income tax liability that comes with pension draw down. The Net effect of this is that you will
pay approximately 70% tax on the excess!

It now becomes important to consider is the issue of the total remuneration packages for high Net
worth individuals.

Where an employer contribution is a contractual part of the total remuneration package, the fact that
an individual has reached their maximum funding threshold will effectively render these employer
contributions worthless .In this situation, where there is an excess created at retirement through
employer contributions it can lead to the Revenue requesting a return of these contributions to
the employer. Therefore the individual may not be getting the benefit of the agreed remuneration
package.

If you also consider someone who is in a defined benefit pension scheme who has reached the new
funding thresholds; these people may be contractually obliged to maintain their existing contribution
levels even though the result of this will be to create an excess above the threshold which again will
be hit with the double taxation.

This issue needs to be addressed and employers and employees may want to look at their pension
scheme structure and consider if this still suits highly paid employees who have hit the PFT/SFT and
question whether some other reward mechanism should be agreed.

Pension Funding in a Defined Contribution Scheme

For those people in a defined contribution scheme it is important now to assess what to do with the
funds that are already invested within the pension and indeed what to do with the money that would
previously have being put towards pension.

If we look at where these funds are currently invested, it creates another problem as there has not yet
been any allowance made for indexation on the Personal Fund Thresholds. Therefore, any growth
achieved on a fund already at the threshold limit will face the same double taxation treatment as
mentioned above.

You may therefore look at moving these funds in to a low risk/low return fund such
as cash within the pension scheme to avoid the possibility of significantly breaching the threshold.
Some would disagree with this and may argue that where there is growth you will still get a gain after
you factor in the tax. In theory this is fine however in order to make a gain there will have to be an

element of risk taken. In my opinion, I would question whether anyone should take any risk where
you are not getting rewarded equally for doing so.

Where to now?

There is an obvious hole now left for people who have reached the new thresholds as they will no
longer benefit from further pension funding. Many are turning to straight forward savings plans
by diverting money that was being used to fund pensions in to monthly savings contributions. The
obvious disadvantage of this is the lack of tax relief that was previously being enjoyed. However
this will provide another pool of wealth that can be accessed in retirement and should possibly be
considered at this stage. To discuss your pension  funding benefits  please CLICK HERE or please contact us on 01-230-9000 for more information