Irish Times Article on New Pension Options, 6 December 2022

Authors: Fiona Reddan, Rachel McGovern of Brokers Ireland & Jonathan Sheahan, Managing Director of Compass Private Wealth

Published: Irish Times, 6 December 2022

Insurers have stopped taking in New business for Executive Pension Policies aimed at business owners and the self-employed in the Irish Market because of strict EU regulations, but the same Insurers have now brought a new Pension Product to the market that provides the same qualities as its predecessor.

Jonathan Sheahan, Managing Director of Compass Private Wealth, provides his views on this change:

Regarding the Master Trusts Pension Product:

For 99 per cent of individuals this isn’s a big deal as new master trusts cannot have any early exit penalties which will be welcomed by individuals as it gives freedom to move if needed.

Regarding the 2022 Finance Bill proposal to abolish the benefit in kind (BIK) charge for employer-related PRSA Pension contributions:

I view this as a great result, furthermore, the individual member will be able to maximise his or her own personal/AVC [voluntary] contributions right up to the age-based limit, and the employer contribution then is separate.

It is now great to finally have the PRSA and the master trust as two really good solutions for future pension funding needs. As a pensions adviser, we now have the same range of options that we previously had, but I believe that the range of options is now better from the client’s perspective.

A link to the full article can be found here.

Jonathan Sheahan is Managing Director of Compass Private Wealth with offices in Dublin and Cork.

Disclaimer: The above is generic in nature and does not constitute financial advice.