The “Personal Pension” structure is very much suited to the sole trader who is self employed or any employed individual who cannot be part of a company arrangement.
Benefits of a Personal Pension:
- The contributor will get tax relief at his/her higher income tax rate of either 20% or 40%.
- The contributor can contribute on a monthly basis by personal direct debit or intermittently by means of a lump sum contribution to avail of tax relief, as per current revenue guidelines.
- The growth in the fund will be completely tax free.
- You can access 25% of your fund tax free anytime from age 60.