Brendan Burgess
Founder
- Messages
- 55,244
Didn't hear it.
Maybe it's in some document.
Maybe it's in some document.
May not have wished to flag it in the speech for political reasons.Most of the pension changes are usually in the Finance bill/act rather than in the budget speech over the years
Do you know if there's any talks of changing the current funding rules for limited companies?.Most of the pension changes are usually in the Finance bill/act rather than in the budget speech over the years
From memory the PRSA/BIK change you're referring to just appeared quietly in the Finance Bill, if there is to be a reversal/change I imagine it will appear just as quietly when we see the Bill in the coming days.Do you know if there's any talks of changing the current funding rules for limited companies?.
There have been rumours that they're going to close off the unlimited PRSA contributions "loophole" but only time and the Finance Bill will tell if there is any substance to such rumours.Do you know if there's any talks of changing the current funding rules for limited companies?.
Employer Contributions to PRSA
In the 2022 Finance Act, the Benefits in kind (BIK) charge on employer contributions was removed. This allowed employers to make large contributions to Personal Retirement Savings Accounts (PRSAs) without the same funding restrictions that applied to traditional occupational schemes.
This was a hugely beneficial change for company directors and key employees to make significant contributions to their pension fund. It seemed too good to be true, and it looks like that is the case, as Revenue is believed to be actively reviewing it. We therefore expect that there will be changes to this to closely align it with traditional occupational schemes.
Where’s the opportunity, you ask? Well, if you have a business then you should look to take advantage of this prior to the end of 2024 and make contributions where the cashflow in the business allows.
While many will be dealing with rising costs and inflation, it is so important to plan for your retirement and a key part of succession planning is ensuring you have adequate funds to replace your income post-working life.
You heard it here firstMay not have wished to flag it in the speech for political reasons.
Tactics revealed. Give loudly to the poor and quietly to the rich!You heard it here first
Wow, what would that give you in weekly income?Reality check: the average pension pot maturity is still well under €200,000.
Well wage growth is the better index to link it to!so ‘index linked’ but to wage growth not inflation .
€200K * 0.04 / 52 = €153.84Wow, what would that give you in weekly income?
Is that because individuals may have 2 , 3 or even 4 of these pots accumulated at different employments over a working life?Reality check: the average pension pot maturity is still well under €200,000.
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