Self Administered Pension
Pension Since 2008
Since 2008, pensions contributions have declined to a non-existent level; in fact many believed that pensions were dead. However over the last two years, pensions are being revived and a lot of individuals are beginning to contribute once again. This is a sign that that the economy has begun to improve. A great number of pension funds were diminished or in some cases wiped out during the financial crisis, which in turn left people nervous and reluctant to invest in their pension. Pensions with Irish Life, Aviva, Friends First, etc. are a homogeneous investment in funds that people traditionally invest in. When the majority of individuals receive a pension statement, they are unsure whether or not they are actually making money or what fees they are being charged. As investors become savvier, they are looking for other types of investments that they wish to diversify their portfolios with.
An Alternative Investment to Traditional Pension Funds
One investment currently worth looking at is property – but not property abroad – property right here at home, in Ireland. Most Irish pension companies do not really offer property funds and if they do they are abroad or in a pool of properties thus the investor is not aware of what they are invested in. So are there any other options for the individual who wishes to invest their pension or part of their pension in to property? A self-administered pension is a solution that enables an individual to have flexibility of investment in various assets and transparency of fees. Many believe that self-administered pensions died with the financial crises but this is simply not true. It is now even easier and more affordable for individuals to start a self-administered pension under any pension structure – PRSA, AVC, SSAP, ARF and AMRF. For example this type of pension allows an individual to pick a property and then purchase it in their pension, within the proper regulatory channels. They know exactly what they are invested in and it is tangible. They can also participate in pooled investments in commercial property for example and this allows them to receive a good yield on their pension investment. Tax relief is received on any contribution made to the self-administered pension fund; in fact they can make up for missed contributions since 2008. Contact me today and we can discuss the particulars of the self-administered pensions.
