August 15, 2022

What Is a Personal Pension Plan?

Personal pension plan refers to the individually organised pensions by the employed or self – employed people of Ireland that do not have any pension scheme. In recent years, the rules governing personal pension plans have changed significantly. 

Personal pension policies and insurance policies are similar in most of the cases in Dubai, with the main difference being the tax relief component. Contributions to pension schemes attract tax relief unlike insurance policies provided the required conditions are met. If you want to get the best international pension planning service then hop over to this website.

Insurance companies invest the premiums paid by its customers in an investment fund. The customer cannot mobilise the funds and invest in other sources until the time of maturity. Even upon reaching the specified age, the policyholder is obliged to utilise the accumulated funds to buy an annuity. But after 1999, the policyholder is no longer obliged to buy an annuity and can mobilise between various funds with a considerable amount of flexibility.

For authorised personal pension agreements, an individual is eligible to avail tax relief for pension contributions. The older an individual is, the more generous the tax relief is.

For certain professions and occupations that include professional athletes also, the maximum amount is applicable to them as well. A limit of €115,000 on the earnings is taken into consideration. This eliminates the option of buying annuity from the proceeds of the individual's pension policy, but not compulsory.