Pensions

How to Choose the Best Financial Advisors for Retirement

Nick Charalambous13th Mar 2023 • 4 min read

Are you approaching retirement or looking to improve your financial plan for retirement? Choosing the right financial advisor is essential in ensuring that you have a comfortable retirement. But with so many financial advisors available, it can be overwhelming to find the right one for your needs. In this blog post, we will provide you with some professional advice on how to choose the best financial advisor for your retirement.

Find a Certified Financial Planner

When choosing a financial advisor, it is important to find someone who is qualified and certified. Look for financial advisors who have the necessary credentials, such as Certified Financial Planner (CFP), Qualified Financial Advisor (QFA), and Retirement Planning Advisor (RPA). These certifications demonstrate that the financial advisor has the knowledge and expertise needed to help you plan for your retirement.

Ask for Referrals

Word-of-mouth referrals from friends, family, or colleagues can be a great way to find a financial advisor. Ask people who have already retired or are currently planning for retirement who they have worked with and if they would recommend them. This can give you a good idea of the quality of service you can expect. See what our clients say about Alpha Wealth here

Discuss the Process and Approach

Before working with a financial advisor, discuss their process and approach to retirement planning. Find out what they will do to help you achieve your retirement goals, how they will assess your risk tolerance, and what strategies they will use to help you achieve your financial objectives. This will help you to understand their approach and decide if it aligns with your goals and values.

Review Financial Advisory Fees

The fees charged by financial advisors can vary widely, and it is important to understand how they are calculated. Ask about the fees upfront and ensure you understand what services you will be receiving for those fees. Consider the value of the services you will receive, the complexity of your retirement plan, and the experience of the financial advisor when evaluating the fees.

Check out their Reviews

Finally, check the financial advisor’s online reviews to get a sense of their reputation and the quality of their services. Look for reviews on their website, social media pages, or third-party review sites. Positive reviews can indicate a track record of success in helping clients plan for retirement. You can check out our Google reviews right here

In conclusion, choosing the right financial advisor is crucial in ensuring that you have a comfortable retirement. Consider finding a certified financial planner, asking for referrals, discussing their process and approach, reviewing their fees, and checking out their online reviews. With these tips in mind, you can find a financial advisor who will help you achieve your retirement goals and enjoy a comfortable retirement. If you wish to book a financial consultation with one of our trusted advisors, you can do so here.

Nick Charalambous

13th Mar 2023

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Pensions

How to Make the Most of Pension Tax Relief Before the Deadline

Your pension could be doing more for you than you think.

Discover how pension tax relief, long-term investment growth and employer contributions could help you make more of your money.

When you hear the word pension, do you immediately think about retirement? You’re not alone. For many people, retirement feels like something to worry about much further down the line.

But what if your pension could help you make smarter financial decisions today, while building greater financial security for tomorrow?

Whether you’ve already started contributing to a pension or haven’t given yours much thought, understanding the benefits available to you is a great place to start.

Here are six things worth knowing about your pension:

Understand the Power of Pension Tax Relief

One of the biggest advantages of contributing to a pension in Ireland is to receive Income Tax relief on eligible personal contributions.

If you pay Income Tax at the higher rate of 40%, you could receive €40 in tax relief for every €100 of eligible contributions. This means a €100 pension contribution could cost you just €60 after tax relief, with the full €100 invested in your pension.

Let’s put that into perspective. A €1,000 contribution could cost a qualifying higher-rate taxpayer €600 after tax relief, while €1,000 goes into their pension.

This is sometimes described as a 66% tax boost because the €400 tax relief is approximately 66.7% of the €600 net cost.

So, before you make any decisions about your savings, ask yourself: Am I making the most of the tax relief available to me?

Give Your Money More Time to Grow

One of the most valuable things you can give your pension is time.

Pension investments can grow without annual tax being charged on investment growth within the pension fund in the same way as it may be on investments held personally. Over time, compounding can help your savings build as investment returns generate further returns.

Think of it this way: the earlier you start, the longer your money has the opportunity to grow.

You don’t necessarily need to make large contributions straight away, either. Regular contributions, where affordable, can help you build your pension gradually.

The takeaway? Don’t assume you’re too young to think about retirement. Starting early could give your pension a valuable head start.

Is Your Pension Invested in the Right Way?

Contributing to a pension is an important first step, but have you considered how your money is actually invested?

Your investment strategy should reflect your age, financial goals, time until retirement and attitude to risk. Someone with several decades until retirement may have different investment needs from someone planning to retire in the next few years.

It’s also worth remembering that taking more investment risk does not guarantee higher returns. Your pension should be reviewed regularly to ensure your investments remain appropriate as your circumstances change.

If you’re unsure how your pension is invested, this could be a good opportunity to review your options and seek professional financial advice.

Are You Making the Most of Your Employer’s Contributions?

If your employer offers a workplace pension, it’s worth finding out exactly what they contribute.

Some employers match contributions made by employees, subject to the scheme’s rules. This can mean additional money going towards your retirement savings, helping your pension grow over time.

If you haven’t joined your workplace pension or aren’t sure how it works, ask your employer about the contribution arrangements and any matching benefits available.

After all, understanding the benefits available through your job is an important part of making informed financial decisions.

Know Your Options for Retirement

Your pension isn’t just about building savings; it’s also about understanding how you can use those savings when you retire.

Depending on your pension arrangement, you may be able to take a retirement lump sum of up to 25% of your pension fund. The lifetime tax-free limit for relevant retirement lump sums is €200,000, with tax applying to amounts above this threshold under the applicable rules.

Thinking about how you want to live in retirement can help you work backwards and understand what you may need to save today.

Have you considered what your ideal retirement looks like, and whether your current pension arrangements are helping you work towards it?

Don’t Miss the Pension Contribution Deadline

If you want to claim tax relief against your 2025 Income Tax liability, now is the time to check the relevant deadline and requirements.

The standard Pay and File deadline for 2026 is 31 October 2026.

If you have savings you won’t need in the short term, making an additional pension contribution could be worth considering. Just remember to keep enough accessible savings for emergencies and any upcoming expenses before committing money to a pension.

Not sure whether an additional contribution makes sense for you? Reviewing your options before the deadline can help you make a more informed decision.

Make Your Pension Work for Your Future

Your pension doesn’t have to be something you only think about when retirement is around the corner. From tax relief and long-term investment growth to employer contributions and retirement planning, there are several ways to make your pension work harder for your future.

The best place to start is by understanding what you already have, what benefits you could be missing and what steps make sense for your circumstances.

This article is for general information purposes only and should not be considered personal financial, investment or tax advice. Tax relief is subject to eligibility and Revenue rules. Investment values can fall as well as rise, and returns are not guaranteed.

Why Business Owners Need to ACT NOW on Pension Changes

The Finance Bill 2025, released last week, contains pivotal updates that will impact business owners, company directors, and senior managers. In particular, a new cap on employer contributions to Personal Retirement Savings Accounts (PRSAs) is set to take effect, marking a significant shift in retirement planning strategy. There is a short window for Business Owners to seize the opportunity before it is changed.

The New Contribution Cap

At present, employers can make unlimited PRSA contributions without them being treated as taxable benefits. However, from January 1, 2025, this will change. Employer PRSA contributions will now be capped at 100% of the employee’s salary, with any amount exceeding this cap treated as a benefit-in-kind (BIK). This means that any contributions above the limit will be taxed as personal income, diminishing the tax efficiency of these payments.

A Narrow Window for Tax-Efficient Contributions

The updated Finance Bill presents a narrow window for business owners to maximise significant tax-advantages under the current, more flexible system. Business owners and directors should seize this opportunity to make larger, tax-deductible contributions to their PRSAs while they still can. After the cap takes effect, substantial contributions may lead to a heavier tax burden, negating the financial benefits for companies and individuals alike.

Implications for Retirement Strategy

For many business owners with fluctuating incomes, the flexibility to make large, irregular contributions is an essential aspect of their retirement planning. The new cap may disrupt this approach, particularly for those who draw modest salaries but wish to boost their pension savings during high-profit years.

Taking Action

Business owners should prioritise a review of their pension funding immediately and assess how these legislative changes might affect their long-term financial goals. Engaging with a financial advisor will help determine the most effective way to capitalise on the remaining weeks of tax-efficient contributions and make adjustments to prepare for 2025. Now is the time to act, as this window of opportunity to maximise PRSA contributions under favourable conditions will soon close. By proactively addressing these changes, business owners can strengthen their retirement strategy and optimise their financial future.

Learn More

Join us on Thursday, 7th November at 1.00PM, as Nick shares actionable steps to reduce your tax burden as a business owner. Learn simple ways to reduce your tax bill before year end and plan your finances effectively for 2025. This webinar is perfect for business owners looking to make informed financial decisions and keep more of their income. Don’t miss this chance to gain expert knowledge from a experienced financial advisor.

State Pension in Ireland – All You Need To Know

Planning for a comfortable and fulfilling retirement is essential, and understanding the State Pension in Ireland is a crucial part of that process. Whether you aspire to an active retirement or desire a well-deserved rest, financial preparation is key. This article aims to answer your burning questions about the State Pension, such as eligibility, payment amounts, and the benefits of a private pension. Let’s delve into the details and ensure you have the knowledge to secure your financial future.

What is the State Pension in Ireland?

The State Pension is a weekly payment provided by the government to eligible individuals aged 66 or older. Its purpose is to offer a basic level of income during retirement, helping to cover essential living expenses.

State Pension Payment Amounts:

As of January 2023, the maximum weekly State Pension payment in Ireland is €265.30. This translates to approximately €13,800 per year or €37.80 per day. When considering your retirement plans, it’s crucial to evaluate the potential income drop upon retirement, the sufficiency of the State Pension for your needs, and strategies to bridge any income gaps.

The Benefits of a Private Pension:

Supplementing the State Pension with a private pension can provide numerous advantages:

Increased Retirement Income:

A private pension allows you to enhance your retirement income beyond the State Pension amount. Additionally, if you have a company pension, your employer may match your contributions, boosting your savings further.

Enhanced Control Over Savings:

With a private pension, you have the flexibility to choose your contribution levels within specified limits based on your age. Collaborating with a financial advisor empowers you to manage your pension fund effectively over time. Here is why you should choose us.

Tax Benefits:

Private pension contributions often qualify for tax relief, providing an opportunity to maximize your retirement savings. Unlike the State Pension, which is not eligible for tax relief, a private pension offers a tax-efficient approach to accumulating funds for retirement.

Potential for Early Retirement:

Depending on your circumstances, a private pension enables you to retire before the standard age of 66. This flexibility grants you greater control over the timing of your retirement.

Additional Voluntary Contributions (AVCs):

AVCs offer an avenue to top up your pension pot beyond regular contributions. These voluntary contributions are particularly beneficial during career breaks, maternity leave, or periods of irregular income, allowing you to bolster your retirement savings.

Frequently Asked Questions about the State Pension in Ireland:

Who is eligible for the State Pension in Ireland?

To qualify for the contributory State Pension, individuals must be 66 years or older and have made sufficient pay-related social insurance (PRSI) contributions. The minimum requirement includes employment before the age of 56 and payment of 520 full-rate PRSI contributions before reaching retirement age. Non-contributory State Pensions are available to residents aged 66 and above, with payment rates determined by means testing.

Can I claim the State Pension if I live abroad or continue working?

Even if you have lived or worked abroad, you may still be eligible to claim the State Pension in Ireland if you have met the necessary PRSI contribution requirements. Similarly, if you plan to retire outside of Ireland, your State Pension can be deposited into your bank account regardless of your location. Non-contributory State Pensions, however, are only available to residents in Ireland.

Can I work while receiving the State Pension in Ireland?

If you receive a non-contributory State Pension, you can continue working; however, the amount you receive may be impacted due to means testing. The contributory State Pension does not impose restrictions on employment income.

Understanding the State Pension in Ireland is crucial for effective retirement planning. While the State Pension provides a basic level of income, supplementing it with a private pension offers numerous benefits, such as increased retirement income, tax advantages, and greater control over your savings. By booking a consultation with our expert advisors, you can explore options like AVCs and gain confidence in securing your financial future. Remember, you don’t have to navigate the intricacies of pensions alone. Contact us today to receive comprehensive and personalised financial advice tailored to your needs.

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