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Pensions Frequently Asked Questions

Pensions FAQ's

Company / Executive Pension FAQ's


What is a regular premium pension?

A regular premium pension is where you contribute on a monthly basis to your pension plan by direct debit. The first contribution to the pension must be received by cash, cheque, bank draft or credit transfer. The minimum monthly contribution is €51.Go Up


What is a single premium pension?

A single premium pension plan is where you invest an initial amount and there is no obligation to invest any subsequent amounts. The minimum initial investment is €1,270 and there is no minimum on any contributions following that.Go Up


Can I start a personal pension?

Yes, if:

  • You are a self employed person
  • You are an employee who is NOT in a company pension
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How much can I contribute?

There is no upper limit on the contributions that you can pay into your Freeway personal pension plan, but there is an upper limit on the amount of contributions for which you can obtain income tax relief.

The minimum amounts for contributing to a QUINN-life Personal Pension are €1,270 for a single premium pension and €51 per month for a regular premium pension.Go Up


What tax relief do I receive on my contributions?

You are entitled to receive tax relief at your marginal rate on contributions paid into your personal pension, subject to limits set down by the revenue. Currently the limits for tax relief allowed are set as a percentage of your Net Relevant Earnings. This percentage is related to age as per the following table:

TAX RELIEFS
Age % of Earnings
Up to 30 15%
30-39 20%
40-49 25%
50-54 30%
55-59 35%
60 & over 40%

There is also a maximum limit of net relevant earnings that can be used in order to claim tax relief on personal pension contributions (currently €254,000).Go Up


When should I start contributing to a pension?

As soon as possible! A pension fund grows over time. The sooner you start the more time your money has to grow.Go Up


In what Freeway funds can I invest?

You will have access to the full range of QUINN-life funds. Your pension contributions can be invested in one or split across a variety of funds.Go Up


What is the duration of my Freeway personal pension plan?

The duration of your policy will be determined by the date on which you take your retirement benefits. This can be anytime between age 60 and age 75, although in certain circumstances, you may be able to take your benefits before age 60.Go Up


Can I cash in my Freeway personal pension plan?

You can only receive cash benefits under your policy when you have reached retirement age. For most people, the earliest retirement age is 60. However, for people in certain jobs and professions, where it is normal to retire before the age of 60, the Revenue may agree to an earlier retirement age. You may be able to receive your benefits earlier than your retirement age if you have to retire due to ill health.Go Up


How can I take my retirement benefits?

You can take up to 25% of the pension fund that you have built up as a tax free lump sum, and use the rest of either option 1, 2 or 3:

Option 1 : you can purchase an annuity, i.e. a regular pension that will be paid for the rest of your life. It is possible to arrange for this annuity to increase at a particular rate each year and also for a further annuity to be paid to your spouse and / or dependents if you die during retirement.

Option 2: you can take a cash sum and pay tax on it.

Option 3: you can invest in an Approved Retirement Fund (ARF) and draw income from it when you need to, or keep it and pass it on to your dependents.

Options 2 and 3 can only be taken if you already have a guaranteed income for life of at least €12,700 p.a. If not, then you must either use €63,500 of your fund to purchase a regular pension annuity or to invest in an Approved Minimum Retirement Fund (AMRF). The original capital in the AMRF cannot be drawn down until you reach 75 but the growth on the AMRF can be drawn down at any time. You don't have to decide now which of these options you want to take. You can leave that decision until you actually retire.Go Up


Can I have my personal pension with more than one pension provider?

Yes, you may. The limit on the tax relief to which you are entitled will be applied to the total contributions that you make to all pension providers.Go Up


Can an employer contribute to a QUINN-life personal pension plan?

Yes, if an employer pays contributions to a personal pension, the employee will be taxed on these as a benefit in kind. The employee can then claim income tax relief on these contributions as if he or she had paid the contributions.Go Up


How do I make payments to a pension?

Payments can be made on a monthly or annual basis by cheque or direct debit.Go Up


How do I claim tax relief?

When you take out a Personal Pension you receive an RAC (Retirement Annuity Contract) certificate after you start. You send this to your tax inspector. If you are self employed, your tax bill will be reduced when you send in your tax certificate with your annual returns.Go Up

Can I set up a company pension?

Yes, if you are a company director or sole trader.Go Up


What benefits are there for my employees if I start a company pension?

Tax relief is allowed on their contributions at their highest rate.
Contributions are invested in pension funds which allow tax free growth.
On retirement a tax free lump sum of up to 1½ times final salary can be taken (subject to revenue maximum limits).
The balance of the fund, after taking the tax free lump sum, can be used to buy an annuity.
The employee can choose the type of annuity.Go Up


What is an annuity?

This is a fixed amount of money paid each year until a particular event (such as a death). It might be split into more than one payment, for example monthly payments.Go Up


Where will the contributions be invested?

The full suite of Quinn Life funds are available to you when you start a company or executive pension. You can choose to invest in one or across a selection of funds.Go Up


How do I decide how much the company will contribute to the scheme?

Decisions on the rules specific to your company pension will be decided by you. Quinn Life will work with you to settle on the pension rules and obtain approval of your plan with the Revenue and also register the plan with the Pension Board.Go Up


Does the employer need to contribute?

Yes. In a company pension the employer must make a "meaningful contribution" to this scheme. This meaningful contribution can be taken to mean:

  • At least 10% of the ordinary annual contribution to the scheme, excluding AVCs, or
  • The costs involved in setting up, ongoing operating costs and the cost of any death in service benefits.
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Can an employee take out a company pension?

Yes, however the employer must make a contribution to the pension.Go Up

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