108 HealtH Matters
pensions speCial
“the options at retirement
offered by prsas and aVCs
are more flexible than the
options offered by the fund
you accumulate through the
main scheme. You can of
course use the fund built up
to buy an income, provided
you stay within maximum
revenue limits.”
it privately, it is typically paid for through where revenue are limiting contributions everybody in the Hse is entitled to be a
your bank account. into pensions for private practice income for member of the defined benefit scheme
as with aVCs, you have a wide range of doctors etc where their salary is above the that is offered but be warned, it may not
fund choices to choose from and complete c150,000 salary threshold. be enough for you and you are certainly
flexibility when it comes to increasing, there are some very clever and perfectly looking at a bigger drop in income at
decreasing, stopping and starting legitimate ways around this for your private retirement than you have experienced
payments. You can also add lump sums in practice income, but they would be beyond in recent months. take some time now,
at any stage. the scope of this article and would certainly whatever stage you are at in your career,
the other big advantage with Prsas require individual advice. to at least review your options. Get good
is that if you move jobs – whether that be the options at retirement offered by financial advice and don’t be afraid to pay
within the public sector or into the private Prsas and aVCs are more flexible than the for it.
sector or if you became self employed – options offered by the fund you accumulate
you keep the same Prsa account. through the main scheme. You can of Eoin McGee is the owner of Prosperous
the introduction of Prsas in recent years course use the fund built up to buy an Financial Services, an independent firm
has completely opened up this market and income, provided you stay within maximum regulated by the financial regulator as a
life companies are aggressively going after revenue limits. multi-agency intermediary and mortgage
your business. My advice would be to seek What most people are attracted to is intermediary.
advice in this area as the offers change the idea of funding an arF (approved He has over 10
quite frequently from company to company. retirement Fund). this is an account that years experience
the funding of Prsas and aVCs is you can invest your accumulated pension giving advice to
limited to a total contribution into all fund into and you can draw money out both individuals
pensions of a percentage of salary. this of (subject to income tax) whenever you and companies
starts at 15 per cent of salary at age 20-30 want. some people will even take it all out in relation to their
and rises up to 40 per cent just before on day one, and who knows, this option finances, he can
retirement. If you are on the higher end of may become even more popular if the be contacted on
the salary scale, your earnings are capped sitting Government introduce the proposed eoin@prosperous.
at c150,000 for pension purposes. changes and further restrict the amount ie, Tel: (045) 841
It is also important to note that further of tax-free cash you can take out of 738 or (087) 644
restrictions have been implemented recently your pension. 5533.
HM Iss6.1 p71-128.indd 108 12/03/2010 15:28:32
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