Its Pension Time
At this time of the year, many of you and your colleagues are preparing tax returns and considering pension contributions.
Our team of experienced financial advisers at IMO Financial Services are ready to help you make the right decisions for your future in terms of pension arrangements and maximising available tax relief. They will cut through the jungle that is pension products, charges and funds as well as advise you according to your own financial needs and aspirations for a retirement income.
Additionally, we can offer reviews with regards to your overall funding limits and drawing of benefits in conjunction with your State/GMS/HSE pension thanks to our unique understanding of these arrangements.
IMO Financial Services has been looking after doctors’ financial needs for more than 20 years. More than anyone we recognise the time and financial pressures on doctors and our team of financial advisers are on hand to assist you at this important time in the financial year.
I hope you enjoy this special pension newsletter and look forward to your comments. Please feel free to contact me on firstname.lastname@example.org with any feedback you might have.
Nives Paic QFA
IMO Financial Services
Our Financial Advisory Team
Francis McGrath email@example.com 086 3852484
Padraig Scarry firstname.lastname@example.org 086 8113023
Pat Donnelly email@example.com 086 8224090
This material is not intended to provide advice and is provided for general information purposes only. The information contained herein is based on IMO Financial Services’ understanding of the changes announced in Budget 2018 and may change in the future. Further clarification of all the measures announced will be detailed in the Finance Bill due to be published over the coming weeks.
Fitzserv Consultants Ltd. t/a IMO Financial Services is regulated by the Central Bank of Ireland
For GPs with GMS income
Those of you who wish to save for retirement in the most tax-efficient way should consider making a pension contribution prior to the above-mentioned deadlines.
Please note that as a GP you do not have to make your AVC contributions to the GMS scheme directly.
Contributions to a stand-alone PRSA AVC, for example, can be a very attractive option in that they offer:
1. Diversification away from the main GMS fund.
2. Full transparency on charges.
3. Flexibility on contribution amounts. You can change the premium amount on an ad-hoc basis.
4. Broader choice of investment funds appropriate to your risk profile.
IMO Financial Services can now offer an AVC against GMS income which can be deducted straight from your pink sheets (PCRS deduction). This facility is not available through any other provider.
Should you have any queries or wish to make a contribution please contact IMO Financial Services on 01/6618299 or email us on firstname.lastname@example.org
Retirement Funding Alternatives
We are seeing a growing trend where clients are choosing to open and fund Executive Pension Plans (EPP) for their spousal employee, as an alternative to funding an employer sponsored Personal Retirement Savings Account (PRSA) and or as an alternative to funding Additional Voluntary Contributions (AVCs) for themselves.
The main reasons for this funding choice are:
- AVC’s could cause individuals with large pension pots to breach the Standard Fund threshold (SFT) over time, negating and causing income tax positions.
- Funding levels into an Executive Pension Plan can be much greater than PRSA funding as EPPs are not restricted by age banding.
- The funds can be treated independently of GMS or HSE Superannuation schemes.
- Potential opportunity to access higher tax-free cash at retirement for a spouse over that available under a PRSA.
The opening of a one-member Executive Pension Plan is relatively easy in today’s market, but this is about to change. With a Pension Authority target date of September 2018 much needed improvements around the appointment and responsibilities of Trustees will be introduced.
The Pension’s Authority advise that special provisions may be required for single member schemes set up before September 2018. While this is not a definitive statement it would be reasonable to advise that where a person intends to open an Executive Pension Plan at some time into the future, it would make sense to accelerate the process and open an account before September 2018.
If you want to explore this alternative further, please contact us on 01 6618299 or email us on email@example.com.
Double-savings for re-starters
The biggest draw of a pension is the tax incentive. If you were unable to make pension contributions for the past couple of years due to financial duress but are now in a better financial position and considering re-starting your pension again, you will benefit from double-savings.
The 2017 tax deadline is about finalising tax affairs for 2016 and setting the preliminary tax due for 2017. Preliminary tax is an estimate of your total tax bill for the year which you pay on the 31st of October every tax year.
If you are making a pension contribution for the first time in a few years, it is likely that your preliminary tax payment for 2016 will have been overstated and this year’s preliminary tax bill will be lower than expected.
If you are considering re-starting your pension again and require advice, please contact us on firstname.lastname@example.org
Minister for Finance, Paschal Donohoe T.D. delivered his first Budget speech last week.
For further information on key points with regards to Life and Pensions, please see below:
There was nothing contained within the Budgetary measures that will directly impact on Life & Pensions. However, there may be further changes announced in the Financial Bill and if there is, then we will issue further commentary on any such changes.
Key Points on Pensions
- No change to the marginal rate income tax relief on pension contributions
- No change to retirement lump sum options or €200,000 tax free lump sum threshold
- No change on 41% exit tax on life assurance personal plans. We would have welcomed a progressive reduction in line with the reduction of rate on DIRT announced in last year’s budget
- No change to the AMRF limit of €63,500 or guaranteed income requirement of €12,700 per annum
- No details on pension auto-enrolment
Should you have any queries please contact IMO Financial Services on 01/6618299 or email us on email@example.com
Dr Ray Walley – our new chairman
We are delighted to announce that Dr Ray Walley was appointed as Chairman of IMO Financial Services in June 2017. He replaced Dr Martin Daly as Dr Daly’s tenure came to an end. All the staff at IMO FS would like to thank Dr Daly for his commitment and wish him the very best in the future.
I am sure many of you know Dr Ray Walley as he held various roles within the Irish Medical Organisation: Member of the Executive Management Committee, Chairman of the National GP Committee and President. He is currently a member of the IMO Council, GP Committee and Policy & International Affairs Committee. Ray also completed a Diploma in Medical Management (RCSI/IPA) with a focus on change management. Dr Walley’s interests in the financial needs of doctors are well known and he will play a significant role in the development of IMO FS' strategy, products and services.
Padraig Scarry – our financial adviser in the west and north-west
I am delighted to announce that Padraig Scarry has joined the IMO Financial Services team as financial adviser. Padraig is a Qualified Financial Advisor since 2003 and has over 30 years’ experience in the financial services industry. Before joining IMO Financial Services, he worked for over 25 years in the banking sector as a wealth management consultant.
Padraig has vast experience in personal financial planning. He is also a member of the Institute of Banking. Living in Galway, Padraig will mainly service IMO members in the west and northern areas. So, if you live in those areas and want to arrange a meeting with Padraig, please contact him by email on firstname.lastname@example.org or by phone on 086 8113023.