Pension for self-employed

peejay1986

Hey. I'm looking for some advice on where to start for a private pension. Currently I'm self-employed and working various contracts, so albeit quite steady in terms of income at the minute, I've no pension schemes I can avail of.

I've been in a couple of meetings about pensions through places I'm contracted, but purely to gain knowledge of pensions in general. So it has got me wanting to start my (overdue) pension.

I'm 33 and happy to do a slight risk I'm terms of my plan. But has anyone any advice on the best pensions out there for self-employed?

I'd also be interested in advice regarding health insurance.

(Yes, I've just realised I need to act like an adult...)


EDIT: I am registered as a sole trader

The Haven

I think the viable option is Davy Select PRSA.
I am looking at this option.

Drumpot

The Haven wrote: »

I think the viable option is Davy Select PRSA.
I am looking at this option.

If you are self employed (LTD company) you should be considering an executive pension not a PRSA unless you are a sole trader. You can potentially put in way more and a much more tax efficient manner (as a company contribution). You also get a tax free lump sum option that is not available on a PRSA.

My suggestion is to ask family and friends if they know a good broker/adviser and get some imprtial advice. Davys and banks can only sell their own products.

Large bottle small glass

OP you need proper independent financial advice.

If you have your own company a directors pension is a very efficient way to legally avoid tax. For example I've paid myself more in pension than salary for last 3 years(I was slightly older than you starting)

A good adviser will talk you through all the options and be very clear and transparent on plan costs and charges AND his charges/commissions.

Again an adviser could advise on all insurance matters and the best way of funding them.

srsly78

Self-employed is not a legal term - it can mean either sole trader or proprietary director.

If director then choose occupational pension.

If sole trader - then setup a company so you have access to above.

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/occupational_pensions.html
Occupational pension is the legal term, also referred to as executive/directors pension.

PRSA is not a good choice compared to occupational pension.

You can pay for advice, but it will come down to which pension provider you setup occupational pension with. Note there can be contribution fees when you pay in, as well as annual management fees. Sometimes the government also likes to dip in.

Heres Johnny

Difference between sole trader and director of a limited company BTW, sole trader can't set up an executive pension plan for themselves but a company director can. Both can be classed as self employed
Talk to an advisor, or even a few advisors, get recommendations from people you know and trust.
Not advice from Internet about what type of pension to go into.

peejay1986

Sorry all, I should have stated, I am a sole trader.

I am definitely going to be seeking professional advice but I'm always keen to hear first hand experiences from people, especially if some come with recommendations.

Appreciate all the responses. Thank you.

colm_c

Sorry to derail this thread, but what is the difference (aside from the max contributions) between an executive pension and PRSA?

srsly78

colm_c wrote: »

Sorry to derail this thread, but what is the difference (aside from the max contributions) between an executive pension and PRSA?

https://www.revenue.ie/en/employing-people/what-constitutes-pay/employees-pension-payments/personal-retirement-savings-account-prsa.aspx


"You should not deduct PRSA contributions from your employee’s gross pay when you are calculating their Universal Social Charge (USC) and Pay Related Social Insurance (PRSI)"