Pensions 2018-01-24T16:10:00+00:00

Budget pensions changes important information for all pension holders.


Will you have a Pension Gap?

Your Retirement could last a long time – 20 years wouldn’t be exceptional
There may be some changes in the Finance Act but these are the proposed changes as per the Budget.

Key Pension Budget Changes

1. Max Limit for Self Employed and Paye workers Reduced

Annual Earning Limit is being reduced from €150,000 to €115,000 , this will affect anyone who is Self Employed or anyone who is a PAYE and investing AVC.

Talk to us in relation to this, if you are self employed and are earning say €200,000 you will only get tax relief if you invest into your pension plan up to €115,000.

2. Max Pension Reduced

The Standard Fund Threshold is €2,000,000, this is very important for anyone with a pension with pension funds in excess of this amount or with funds approaching this level.

If you have a fund in excess of 2.0m then you have 6 months from the date of the budget to claim a Personal Fund Threshold to the revenue commissioners.

We would recommend that if you have a very large pension fund and you are considering retiring then you need to contact us.

3. Tax Free Cash Reduced

The max Tax Free cash lump sum that you can draw from your pension has been reduced to €200,000. This affects anyone who has a pension fund greater than €800,000.

If you have a pension fund greater than €800,000 then call us on 047 38 600.

If you had a pension fund say of 1m , normally you could draw down 250k tax free but this is reduced to 200k and the difference that is 50k will be taxed at the lower tax rate , that is 20%.

4. Employee Pension Schemes [Occupational Pension Scheme}

All employees of defined contribution occupational schemes have full access to Approved Retirement Fund (ARF) Options.  There is a requirement to hold up to €63,500 in an Approved Minimum Retirement Fund (AMRF), if the employee does not have a guaranteed pension income of €12,700 p.a. (this can include the state pension) when taking benefits.  On the plus side, from January 2015, it will be possible to take a withdrawal of up to 4% from the AMRF.

5. Employee’s in Occupational Pension Schemes

Employee’s in Occupational Pension Schemes PAYE relief is unchanged but from 1st of January 2011, employee contributions will not benefit from PRSI relief nor relief from the Universal Social Charge.

6. Approved Retirement Fund

The inputted distribution from Approved Retirement Funds has been   increased to 4% from ages 61-70 and 5% from 71 onwards.. AMRF holder can   withdraw 4% pa of value of their AMRF as of the 1st Feb in that year,   subject to PAYE.


There important changes have a major impact on the following:

  • Any Employee coming close to Retirement
  • Anyone with a Pension of 800k or more
  • Anyone who currently has an Approved Retirement Fund
  • If you are one of these just call me and I can explain the impact of the new changes on you.

For full information on all of these and their impact on your pensions why not contact for a free consultation