# Self employed pensions??



## comanche (25 Sep 2009)

I am a self employed 33yr old who wants/needs to set up a pension asap(consicious of oct 31st revenue deadline approaching...).

I have a prsa from my previous employment which i have left static for last 18months while I got myself up and running.

I am filing my tax returns for 2008 at moment and feel that I should get benefit of tax relief and put a lump sum into a pension now to cover the last 18 months of non contribution.

What is my best route? PRSA or self administered ? My earnings are 40000e approx gross.

Tax issue aside, Im still anxious to get my pension started.

All feed back appreciated!


----------



## LDFerguson (25 Sep 2009)

Self administered pensions are, in my view, only for those who are comfortable selecting and managing their own investments on an ongoing basis.  Experienced investors in other words.  

Are you a sole trader or a company director?

Liam D. Ferguson


----------



## comanche (25 Sep 2009)

A sole trader.
Yes, I felt that I was too "small fry" for a self administered pension.


----------



## LDFerguson (25 Sep 2009)

I hope I didn't sound condescending in my last post about self-administered pensions.  My opinion is that they are for people who are experienced investors and have an active interest in the ongoing management of their own pension fund.  This doesn't have to mean "big fish" - small fry can make excellent investors too!  But you have to have the interest and knowledge.  

As a sole trader, you have the choice of either a PRSA or a Personal Pension.  Not much to choose between the two if you expect you will be self-employed for the rest of your career.  It is possible to get a Personal Pension with lower charges than a PRSA, especially for larger contributions.


----------



## Tentman (27 Sep 2009)

Remember you will have to contribute Class S PRSI contributions as a self-employed person. This will entitle you to a contributary pension at 66. You should factor this into any plans you have for retirement.


----------



## z101 (27 Sep 2009)

I assume by personal pension you have to set it up your self without any broker involved. how is this done? Can anyone give an example of how this is done i.e. picking your investment, payment(s), paperwork etc?
How much are broker fees etc, to make this worthwhile?


----------



## Bronte (28 Sep 2009)

Ceatharlach said:


> I assume by personal pension you have to set it up your self without any broker involved. how is this done? Can anyone give an example of how this is done i.e. picking your investment, payment(s), paperwork etc?
> How much are broker fees etc, to make this worthwhile?


 
If you're not experienced I don't think you picking your own pension is the way to go. Why don't you go through someone like LD who is really experienced in this area. Money well spent I would have thought.


----------



## LDFerguson (28 Sep 2009)

Ceatharlach said:


> I assume by personal pension you have to set it up your self without any broker involved.


 
No - a Personal Pension (or to give it the technically correct title, a Retirement Annuity Contract) is just a generic type of pension product, suitable for the self-employed or those in non-pensionable employment.  You can contribute to a Personal Pension with just about any of the well-known Irish pension companies, e.g. Irish Life, Hibernian Aviva etc., and choose Managed Funds.  



Ceatharlach said:


> how is this done? Can anyone give an example of how this is done i.e. picking your investment, payment(s), paperwork etc?
> How much are broker fees etc, to make this worthwhile?


 
You can arrange one through a broker (with or without advice as required) or directly with the provider, although in many cases a discount broker will be able to offer lower charges for execution-only (no advice) than the provider would offer directly.  

The Financial Regulator has some useful information about the different types of product on their website here.


----------



## z101 (30 Sep 2009)

Thats for that LD. Why do you say a personal pension is the one suitable for self employed??


----------



## comanche (30 Sep 2009)

Thanks for all the advice- will contact a broker to assist in pension set up now I have some good general knowledge on subject.


----------



## LDFerguson (1 Oct 2009)

Ceatharlach said:


> Thats for that LD. Why do you say a personal pension is the one suitable for self employed??


 
Hi Ceatharlach, 

A Personal Pension is only available to those who are self-employed or in non-pensionable employment.  Revenue rules.


----------

