Just curious - why was reaching the 41% bracket the trigger for this? Setting up a SSAP I mean as opposed to starting (?) a pension in the first place?Hi Guys, I have finally reached the higher tax bracket and wish to set up a Self Administered Pension Scheme.
Clubman, that is a good point. Ideally it would make more sense to be able to use a SAPS to (forgetting the current market) buy property etc tax free. Then by retirement have built up enough rental income to see you through your later years. This cuts out the middle men who are creaming off a nice management fee from your monthly pensions contribution and overall fund value, plus you will have assets to pass on to your children, rather than an annuity which will die with you.
Am I missing something? I thought that property investment via your Pension Scheme must be at arms length? and must be disposed off when taking your retirement benefits?
The point about charges is valid - most SSAPs are set up on a flat fixed-charge basis, rather than a percentage of fund assets. But typically the charges can be €3,000 - €4,000 to set up an SSAP and €1,500 - €2,000 per year thereafter to run one.
Am I missing something? I thought that property investment via your Pension Scheme must be at arms length?
and must be disposed off when taking your retirement benefits?
I have to say I thought that that was only available to company directors.
Can you do it yourself instead? Are the charges effectively just for tax returns or something like that?
I may have interpreted Towger's commentThat's right. Where is this contradicted above?
incorrectly. I was reading this as Towger stating that you could pass the physical property onto your children. Perhaps I interpreted it incorrectly.plus you will have assets to pass on to your children, rather than an annuity which will die with you
It is possible to transfer a property from a Self-Administered pre-retirement pension arrangement to an ARF.
No, the self-employed and those in non-pensionable employment can avail of either self-directed or self-administered pension arrangements also. The latter would be via a unit trust vehicle.
Can anyone confirm where a self-employed person can set up a self-administered pension? I've been told by one pensioneer trustee that SA Pensions are only available for Company Pensions?
We offer self-directed Personal Pensions for self-employed people using a structure provided by Standard Life or Irish Life. Independent Trustee Company offer self-administered pensions for self-employed people. I'm sure there are others doing similar arrangements.
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