Save now and for later: your year-end pension review

Act now to make the most of pension possibilities

As the year end approaches so do pension deadlines – and the opportunity to save now and in the future for both companies and individuals.

Company Directors should first look at ensuring their obligations are met. For companies with Dec 31st financial year end, company pension contributions need to be paid before then – they can’t be accrued. Pension contributions are a deductible expense saving 12.5% Corporation Tax.

Directors should also review their own pensions and check calculations for maximum funding. Is your pension funded at that level and, and if not, is there cash available in the business to do so? Is that a good use of that cash? These calculations can also determine if directors can fund previously underfunded years of service.

Employees should also be looking at contributions, both employers’ and their own. They may be able to avail of relief or tax savings within the PAYE system, by going through payroll before the year end, through arrangements like Additional Voluntary Contributions (AVC).

An AVC is a tax-efficient way to fund extra retirement income and get tax relief right now, For those paying income tax at 40%, every €50 invested in an AVC costs only €30. It’s important to get the correct advice – employees should contact the provider of the company pension scheme or their HR department for guidance.

Early and consistent funding of pensions is the most advised strategy as well as taking an active and ongoing interest, says Thomas O’Regan, Senior Manager. “Manage your pension product like any other financial product throughout your life. Seek independent financial advice on pension products. Don’t be afraid to switch pension product providers if you need to. Ask questions.”

Talk to your accountant or pension provider today or, for more information on pensions and retirement, contact Thomas at Thomas’s focuses including tax planning, VAT on property transactions, wealth management and retirement planning.

Evaluating occupational pension schemes options? 

The team at Paul O’Donovan and Associates advise and consult on company pensions, including offering employee information sessions so staff will understand where they are going with their pension and how staff contributions work. 

Our pension planning service cuts through complexity, finding the best solutions for your situation. Call us today at 021 432 1799 or email

Red writing on a white background with red Christmas baubles: Tips 5, 6, & 7: top up your pension Employees: AVCs boost your retirement income and get tax relief right now Company Directors: check maximum funding calculations before the financial year ends to top up or fund previous years Conduct regular check-ups: don’t be afraid to switch providers The 12 Financial Planning Tips of Christmas

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