Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Limited company: Executive Pension, health insurance

Options
  • 16-12-2020 9:14am
    #1
    mp3ireland2
    Registered Users Posts: 1,773 ✭✭✭


    Hi,
    I have recently set up a limited company and wondering if anybody had any tips on an executive pension provider? I'm aiming to throw in about €600 a month, I'm mid 30's in case it's relevant. I just don't know where to start, go with one of the big companies? Maybe somebody has done this research before!

    For health insurance is there any tax/PRSI/USC benefit to the company paying my health insurance as opposed to me paying it out of my pay?

    Chris


Comments

  • Options
    #2
    JMR
    Registered Users Posts: 633 ✭✭✭JMR


    mp3ireland2 wrote: »
    Hi,
    I have recently set up a limited company and wondering if anybody had any tips on an executive pension provider? I'm aiming to throw in about €600 a month, I'm mid 30's in case it's relevant. I just don't know where to start, go with one of the big companies? Maybe somebody has done this research before!

    For health insurance is there any tax/PRSI/USC benefit to the company paying my health insurance as opposed to me paying it out of my pay?

    Chris

    I like Irish Life personally. The fund I am in is unmanaged so fees are relatively low, good online interface which allows you to switch around between funds etc.
    Customer service is also quite efficient.
    I was previously with AIB years ago, one of their managed funds and fees were quite high (5% I think) so that didn't last long.

    If the company pays for your health insurance this is treated as a benefit in kind.


  • Options
    #3
    mp3ireland2
    Registered Users Posts: 1,773 ✭✭✭mp3ireland2


    JMR wrote: »
    I like Irish Life personally. The fund I am in is unmanaged so fees are relatively low, good online interface which allows you to switch around between funds etc.
    Customer service is also quite efficient.
    I was previously with AIB years ago, one of their managed funds and fees were quite high (5% I think) so that didn't last long.

    If the company pays for your health insurance this is treated as a benefit in kind.

    Thanks, I've just looked up an unmanaged fund and see it tracks the whole market, but like you say no high fees. It gives me a starting point anyway, I'm guessing you could also select managed funds for a portion and split it up that way? And forgive the obvious question but you can invest varying amounts in the pension each month, just bank transfer it in? or how does money get into the pension?

    So there's no advantage to company paying health insurance I take it? I thought this was the case but in case there was something I was missing I thought I'd ask


  • Options
    #4
    JMR
    Registered Users Posts: 633 ✭✭✭JMR


    Don't know if you can include some managed funds along with unmanaged funds in the overall portfolio, I don't.
    It would depend on the product they offer.

    Easiest way is to set up a direct debit for a set amount each month. Varying amounts each month would require you to contact IL each month and manually do a bank transfer etc, suppose it could be done.
    More normal is a set amount each month and a lump sum at end of year if you want to / have surplus.
    Changing the monthly amount is relatively easy too. You need to send an instruction on headed paper.

    No real benefit to the company paying health insurance as the cost is effectively treated as part of your salary and you pay BIK on it.


  • Options
    #5
    krissovo
    Registered Users Posts: 2,645 ✭✭✭krissovo


    Aon Hewitt has an executive pension that has performed well for me. Mine is part managed and part self controlled through various risk level positions. There are fees but the way I see it is that its performing far better than other venders so worth it.

    At your age higher risk should be fine, I took a big hit back in 2007 but it has bounced back really well and I am now starting to reduce my risk due to my age.

    You should have a chat with their private client services, at the very least they can open your eyes with what is involved with setting up a retirement plan.


  • Options
    #6
    BailMeOut
    Registered Users Posts: 2,980 ✭✭✭BailMeOut


    I am in the same situation and use Davy with everything self-managed. Money goes in once a month (tax-free) and I make trades about once a quarter on a very diverse portfolio (stocks, mutual funds, EFTs) over about 20 different holdings and at the end of the year pay in as much as you can to offset any taxes owed.


  • Advertisement
  • Options
    #7
    mp3ireland2
    Registered Users Posts: 1,773 ✭✭✭mp3ireland2


    Has anybody had issues with executive pensions and using Revolut? Revolut currently operates on a Lithuanian licence and Aon waiting to hear back from Irish Life if that's ok? The guy I was talking to thinks I'll need to have an Irish business bank account for revenue reasons, seems strange as revenue happy to take my VAT and income tax from the revolut account


Advertisement