Pensions Tax Efficiency

Did you know

that for every €1,000 you put into your retirement fund, it actually only costs you €590 if you are paying income tax at the top rate.

Tax relief is available to self employed schedule D (case 1 or 2) or Schedule E non pensionable. For more information see page 3. These rates are correct as at August 2012.

Subject to an earnings cap of €115,000 you can contribute up to a certain percentage of your salary, and claim income tax relief, depending on your age.

Pension income in retirement is subject to income tax at your highest rate on withdrawal, Universal Social Charge, PRSI (if applicable) and any other charges or levies (tax) applicable at that time.

Warning: If you invest in an AMRF you will not have access to your initial investment amount until age 75.

Your options at retirement

OR a combination of all three options can be taken with the remaining 75% of the fund.

* Unless you have a guaranteed pension income for life of €118,000 a year when you retire, €119,800 of your fund must be invested into an approved minimum retirement fund (AMRF). Growth from your AMRF can be taken at any time, however the original investment amount cannot be withdrawn until age 75, unless it is used to purchase an annuity or you start receiving a guaranteed pension income for life of €18,000 a year form other sources. Any amount withdrawn from the AMRF will be taxed as income.

Should you want to review your options or need further information, please contact us for more information on 053-9146592.

Self-Invested Pension Fund

If you like things just a certain way, you’ll love the Deposit options on Irish Life Self Invested Pension Fund.

A Self-Invested Fund from Irish Life gives you control over your pension by arranging all the elements in the way that suits you best. For example, you can choose from their competitive range of rolling monthly, fixed term or on-demand deposits, and from a selection of seven different banks.

So whether you already have an existing pension, or you’d like to invest in a new one, Irish Life Self-Invested Fund allows you to arrange your things just the way you like them.

Deposits in the Self Invested Fund are currently exempt from DIRT (Deposit Interest Retention Tax) and are owned by Irish Life. The minimum investment is €20,000. Investments in a Fixed Term Deposit Account finish on a specific date. So if you’re near retirement, your fixed term deposit should always end before your planned retirement date. That way you won’t delay your retirement or have any deposit account breakage fees.

Contact us today on 053-9146592 for a copy of the guide to our Self Invested Fund.

Warning: This fund may be affected by changes in currency exchange rates.

Warning: If you invest in this fund you may lose some or all of the money you invest.

Warning: The value of your investment may go down as well as up.

Warning: If you invest in this product you will not have access to your money until age 60 and/or you retire.

Neiland Financial Services Limited T/A Neiland Financial Services and Ace Mortgage Solutions is regulated by the Central Bank of Ireland. 
Directors: Kenneth Neiland & Margaret Neiland 
Registered information:  Company No. 440364  Registered Office: Carrig House Roche’s Road Wexford.

Wealth Options launches a new Global Star Performers Bond

KEY FEATURES: 

  *   100% Capital Protection at maturity

  *   5 year term

  *   100% participation in the positive performance* of a basket of 5 international funds including GARS, BNY Mellon and Blackrock funds.

  *   No cap on potential returns

  *   Minimum Investment of €10,000

  *   Commission is 3%

  *   No annual management fee

WHY THE GLOBAL STAR PERFORMERS BOND 3?

Given recent market shocks, it is essential that investment strategies have the capacity to adapt to brutal changes in market conditions, and consider the erratic performances of many asset classes. The Global Star Performers Bond 3 provides exposure to an equally weighted basket of international funds managed by world leading investment managers.

WHO IS IT SUITABLE FOR?

The Global Star Performers Bond 3 is available to Individuals, Companies, Charities, Credit Unions, Pension Investors and Approved Retirement Funds (ARFs).

• This Investment is suitable for investors who require capital protection at Maturity.
• This Investment is not suitable for investors who require regular income.
• This Investment is not suitable for investors who require access to their capital before Maturity.
• There is no guarantee that this Investment will provide a better return than a deposit or any return at all.

Check here the brochure for this bond!!!

For more information please do not hesitate to contact us on 053-9146592.

Neiland Financial Services Ltd, Carrig House, Roche's Road, Wexford - T: 053 9146592 | F: 053 9152090 | W: www.nfs.ie

Neiland Financial Services Limited T/A Neiland Financial Services and Ace Mortgage Solutions is regulated by the Central Bank of Ireland.
Directors: Kenneth Neiland & Margaret Neiland Registered information: Company No. 440364 Registered Office: Carrig House Roche’s Road Wexford.



Baby Boom!!!

Do you know that Ireland is currently experiencing a Baby Boom, having one of the highest birth rates in the EU?

BECOMING A PARENT

Becoming a parent will naturally cause you to revaluate your priorities, and protecting your family will undoubtedly be top of this list. These are thousands of new parents in Ireland right now going through the same wonderful life changing experience as you are, with Ireland currently in the midst of a Baby Boom, having one of the highest rates in the EU.*

We all know how much our children depend on our support. This feeling of knowing they are provided for is one of the many joys of being a parent. Being in a position to give them all the love and attention they need, all their daily wants as well as those little extras, like Birthday gifts and Christmas treats are what make their childhood so exciting and memorable.

BUT WHAT IF...?

Having a family is a wonderful thing, but there's no doubt it's also expensive! School fees, medical expenses, clothing, food, childcare - these are just a sample the on-going expenditures a parent will incur over a child's life.

This topic is not something anyone likes to dwell on, but have you ever before considered how your family would cope in financial terms, if you were to die suddenly? Not something any of us like to think about and fortunately for those of us in good health, this prospect is a distant thought. However, it is very important to protect your loved ones and provide them with the means and peace of mind of knowing, that they can continue to meet future and ongoing expenses and bills. In the unfortunate event of your death, having the adequate Life cover provisions in place can help your family to cope financially with such a loss, without the added presure of extra cash and monetary concerns.

LIFE COVER

Life Cover provides your dependents with a guaranteed lump sum payable should you die during the term of your policy. Premiums are paid to a Life Assurance provider throughout the term of your policy, to guarantee a payout from them to your dependents in the event of your death.

Taking out a €350,000 Life Cover policy today can cost as little as €16 per month for females** & €21 per month for males***.

We understand that following the birth of a child, being inundated with expenses such a financially demanding time can be difficult. But as you know, th emost prudent thing to do is to prioritise what represents a necessity. Thankfully, with a decrease of up 40% in Life Cover over the last decade there is great value now currently available in the market, with these manageable monthly payments contributing towards securing your child's future financial welfare.

We can also advise you on the benefits of Specified Serious Illness Cover for you and your family.

Simply contact us on 053-9146592 or by email info@nfs.ie at a time that suits you, and we will be delighted to assist you in choosing the best cover to meet your needs.

Follow your natural protective instincts by talking to us today about Life Cover.

41% LESS* than a regular life policy!!!

It is that time of year again, with tax returns due just around the corner at the end of October. With this in mind, do you know there is a tax relief associated with the current pension legislation which can allow both self-employed, & employed individuals not currently involved in a pension scheme, save up to 41% on Pension Term Assurance*....

The deadline for the 2012 Tax Return is Wednesday October 31^st.

(For more information please visit www.Revenue.ie)

WE ALL KNOW TAKING OUT LIFE ASSURANCE POLICY IS A GOOD IDEA... but sometimes with all the other demands on your income such as mortgage payments, utility bills, holidays, school fees, the weekly grocery shop...it can only be hard to see how to budget for Life Cover.

There's a solution available that delivers the peace of mind that comes from knowing that these expenses will be covered should you die. In fact it can cost up to 41% LESS* than a regular life policy.

Its name.....PENSION TERM ASSURANCE

Quite simply, this is a Life Assurance product that is structured to utilise the tax relief that is available under Pension legislation - and you don't even need to have a Pension to benefit from this type of policy!

You can avail of the benefits of Pension Term Assurance and protect your family and their financial security provided you are:

• Self employed or
• Working in non-pensionable employment

* Tax relief is available at the marginal rate of tax. 



Zurich Life 3 NEW Fixed Rate Deposit Funds

Zurich Life is delighted to announce the launch of 3 NEW Fixed Rate Deposit Funds to compliment their suite of existing cash and secure options. For a limited time - until 27th August 2012 (or earlier if fully subscribed) - Zurich Life is offering a range of Fixed Rate Deposit Options for you to choose. 1 year option with KBC Bank Ireland plc paying 3.95% AER* 3 year option with EBS Limited paying 4.00% AER* 5 year option with EBS Limited paying 4.70% AER* These three new Fixed Rate Deposit Funds are available to new and existing single premium pensions including top-ups. Please click here for all details on these attractive options. These funds are only suitable for clients wanting to remain invested in the fund up to the maturity date. It will not be possible to switch, encash or partially encash from the funds before the maturity date. However, it will be possible to partially encash or make regular withdrawls of up to 5% per annum on ARF and AMRF policies on the 30th November each year. Withdrawals from AMRFs are subject to Revenue restrictions.

The new Fixed Rate Deposit Funds are only available for a limited time, until 27th August 2012 (or earlier if fully subscribed) - so don't delay, contact us today on 053 9146592. *AER refers to the Annual Equivalent Rate.

IMPACTS OF GENDER NEUTRAL PRICING ON THE LIFE INSURANCE INDUSTRY FROM 21st DECEMBER 2012

Life Insurance Pricing
Typically, Life Insurers currently use 3 main rating factors for calculating life insurance premium rates - age, gender, and wether or not the individual smokes. For over 80% of customers, the premium rate will be calculated based on this information only. The health of the individual is only taken account of in a small minority of cases, with a loading to standard rates applied if the underwriter determines that the individual has a lower than average life expentancy. This may be due to the individual's medical history, occupation, family history or ill-health etc.

For smokers, the cost of life insurance can be more than double the cost for non-smokers. This reflects the fact that smoking shortens average life expectancy by up to 10 years.

For females, the cost of life insurance is typically 25-30% less than the cost for males. Throughout history, females have tended to live longer than males, and, currently, females live on average about 5 years longer than males. The reasons for this are not completely clear - it has been speculated that this is due primarily to lifestyle and occupation factors, rather than genetic factors. For example, males tend to drink more alcohol than females and also tend to have poorer quality diets. Both of these factors will tend to result in females living longer. In addition, males tend to have much higher rates of suicide than females and are much more likely to die as a result of a road traffic accident.

However, there is also some evidence that females are genetically  more likely to live longer. Females have higher life expectancy in all countries in the world, and longer female life expectancy is also found in most animal species. The gap between female and male life expectancy has been gradually declining in recent years, presumably as a result of female and male occupations, and lifestyles, becoming more similar.
Whatever the exact breakdown of the different factors which go into explaining the gap between female and male life expectancy, life insurers have found gender to be a very useful proxy for the various risk factors involved. From 21st December, this approach will no longer be possible.

Initially, it is likely that life insurers will simply calculate new premium rates based on the expected mix of males and females in their portfolio of business, using the existing separate premium rates which they have for males and females as a base. There will be some uncertainty about the mix of new business between males and females, and therefore insurers are likely to take a somewhat conservative view on business mix to beging with.

This will result in males paying a similar rate to current rates for life insurance, and females paying significantly more (30% to 50% more, depending on age). So, for females needing life insurance cover, now is time to buy!

Income Protection Pricing
For Income Protection products, insurers use a somewhat more sophisticated pricing approach, taking account of occupation class in addition  to the usual factors of age, sex and smoker status. Occupations which are office based typically pay a lot less than occupations involving significant manual work. For some occupations, insurers do not provide income protection cover because of the high risk of injury or disability.
All other rating factors being equal, females are currently charged 50-60% more for Income Protection cover compared to males. In setting a gender-neutral price, insurers will take account of the expected mix of business, in the same way as on other product lines. This is likely to result in a rate which is closer to the current male rate than to the female rate, because insurers will not expect a major change to their mix of business. Therefore, females requiring income protection cover might be well advised to review their cover, and the price they are paying for it, after the introduction of gender neutral rates on 21st December 2012.

Impact on existing business
Life insurance contracts are typically written on a long-term basis. The Test-Achats judgement does not impact the premium rates which Life Insurers can charge on existing contracts, even where gender has been taken account of in calculating those rates. This means that clients with existing contracts need not worry that their premium rates could be increased as a result of the introduction of gender neutral pricing. However, life insurers need to be aware that any changes made to an existing policy, which are not part of the original terms and conditions, may result in a need to apply gender neutral pricing to the policy.

Conclusion
Gender-neutral pricing is the most significant change to the pricing of life insurance products in Ireland which we have seen in the last 10 years. The impact of gender-neutral pricing will vary depending on the product line, and insurers are likely to take a prudent view on calculating gender-neutral rates until the market settles down. Over time, life insurers may look to develop more sophisticated pricing approaches and the introduction of gender-neutral pricing may be a spur for greater product innovation.

If you are a female and you are thinking to take a life cover or you already have one, do not hesitate to contact us to review your premium rates or benefit of the advantages before the gender-neutral pricing takes place from 21st December 2012.