Money Maximising Advisors Ltd.

Financial Plan for People Approaching Retirement

Retirement is a change in income. Plan for the life you want to lead.

Are you approaching retirement, considering leaving work early or already retired? Your pension is only one part of the decision. Your savings, mortgage, household spending, tax and family commitments all affect what you can afford to do next.

We help you connect
  • Pension entitlements
  • State Pension
  • Retirement lump sums
  • Savings
  • Investments
  • Protection
  • Family goals

WHO WE HELP

A retirement plan built around your household

At MM Advisors, we help people in Ireland bring pension entitlements, the State Pension, retirement lump sums, savings, investments, protection and family goals into one practical financial plan. We pay particular attention to teachers and other public service employees whose pension arrangements depend on their recruitment dates and service histories.

Our service is relevant whether you work in a school, the public service, a private company or for yourself. We also plan for couples with different pension schemes and retirement dates. We start with the income you can rely on, what you would like to spend, and how any gap will be covered.

Your financial plan

What your retirement financial plan should give you

  1. A forecast of household retirement income and spending across different retirement ages.
  2. An understanding of pension benefits, access dates and possible early retirement reductions.
  3. A plan for retirement lump sums, available savings, debts and emergency reserves.
  4. A review of AVCs, personal pensions and suitable investment choices where relevant.
  5. An assessment of income tax, USC and any applicable PRSI on retirement income.
  6. Protection and estate planning priorities for you, your spouse and family.

YOUR PENSIONS

Understand exactly which pensions you have

Public service pensions are not all the same

Teachers and other public servants may have different schemes according to when they joined the public service, previous employment and breaks in service. For many standard-accrual public servants, recruitment before April 2004, from April 2004 to December 2012, or from January 2013 can lead to different minimum pension ages and scheme calculations. These are general cohorts, not a substitute for checking your own scheme records.

The Single Public Service Pension Scheme generally applies to new entrants from 1 January 2013. Its benefits are based on career-average pensionable earnings and accumulated amounts, rather than simply final salary and service. Its normal retirement age is currently linked to the State Pension age, and its compulsory retirement age is generally 70. Earlier arrangements have different rules.

Get estimates from the right pension administrator

We help identify the information to request: pensionable service, part-time service, purchased service, salary and allowances, preserved benefits, retirement ages, death benefits and estimated pension and lump sum.

Your Department of Education or relevant payroll/pension administrator determines your official entitlements; MM Advisors does not substitute estimates for an official benefit statement.

Teaching career breaks and reduced hours

Job sharing, unpaid career breaks, substitute work, leave, prior public service and pension transfers can affect reckonable service or benefit calculations. We check these periods before using assumed full-time service in a retirement forecast.

Where relevant, a teacher can use the Department of Education pension modeller, while Single Scheme members should use the appropriate Single Scheme estimator and administrator information.

RETIREMENT AGE

Decide when you can afford to retire

Compare retirement at more than one age

Retiring at 55, 60, 65 or 66 can produce very different financial outcomes. We model the income available from the planned retirement date, when each pension begins, and what savings may be needed in between.

Access to early retirement, including cost-neutral early retirement or special teacher arrangements, is conditional and can reduce benefits. Eligibility must be confirmed by the relevant scheme administrator.

Plan for the gap before State Pension age

The State Pension (Contributory) is currently available from age 66 for qualifying applicants. Eligible people who reach 66 can choose to defer claiming up to age 70, potentially increasing their payment.

66current State Pension (Contributory) age for qualifying applicants

State Pension eligibility and amount depend on each person's social insurance record. Not every public service employee has the same PRSI record or entitlement, and some occupational pensions are coordinated with State Pension arrangements.

Retirement need not mean stopping work completely

Part-time teaching, consultancy, substitute teaching or other paid work may supplement income, but could change tax, pension abatement or social insurance outcomes.

We review the likely net income and flag pension administrator rules before you commit to returning to work.

AVCs

Review AVCs and additional pension contributions

Use AVCs for a defined retirement purpose

Additional Voluntary Contributions may help eligible teachers and other employees increase retirement provision, subject to pension scheme, Revenue, contribution and benefit limits.

They may be useful where there is a retirement income gap or where the available retirement benefits do not match personal goals. We assess contribution affordability, investment risk, charges, tax relief and the time remaining until retirement.

Notional service is different from an AVC

Eligible members of certain older teachers' pension schemes may be able to purchase notional service, subject to scheme restrictions. It is not an option available simply because someone is a teacher, and should not be offered as an equivalent option to members of the Single Public Service Pension Scheme.

Costs, deadlines and value should be confirmed by the Department or administrator and compared with AVC alternatives.

Tax relief and pension funding limits

Personal pension and AVC tax relief depends on relevant earnings, age-related limits and Revenue rules, including the annual earnings cap where applicable. Contributions generally receive Income Tax relief, not automatic USC or PRSI relief.

A public service employee with additional self-employed income may have overlapping pension arrangements that must be assessed together, rather than claiming the maximum allowance independently for each role.

LUMP SUMS

Make the most of retirement lump sums

Use the lump sum with a purpose

A retirement lump sum may help reduce a mortgage, fund necessary work to the home, support travel or provide an accessible reserve.

It is worth deciding how much to keep liquid before placing any amount into a long-term investment. A large lump sum should not automatically be treated as surplus for investing.

Know the Irish retirement lump-sum tax rules

Under current Revenue rules, the lifetime tax-free limit on qualifying retirement lump sums is €200,000 across relevant arrangements.

€200,000current lifetime tax-free limit on qualifying retirement lump sums

Amounts between €200,000 and €500,000 are generally taxed at 20%, and amounts above €500,000 are generally subject to marginal-rate taxation. These are tax thresholds, not promises that a particular pension arrangement allows a lump sum of any given size.

Review the destination of any AVC fund

Depending on the scheme and the individual's available entitlements, AVC benefits may be used towards additional retirement lump sums or other permitted retirement options.

Approved Retirement Funds, annuities and other choices have different access rules, taxation, minimum drawdowns and investment risks. Check the specific scheme before assuming an ARF is available or suitable.

MONTHLY BUDGET

Turn pension income into a workable monthly budget

Build a retirement cash flow forecast

We compare pension income after tax with essential spending, mortgage payments, transport, healthcare, home maintenance, holidays and support for family. We also allow for inflation and possible changes in spending later in retirement.

Use separate accounts for practical needs

1Income

Household income account

Receives pensions and other retirement income.

2Spending

Bills account

Covers regular commitments and annual expenses.

Accessible reserve

Provides for unexpected repairs, medical costs and short-term spending.

3Goals

Near-term goal savings

Funds planned expenditure over the next few years.

Long-term investment allocation

Only for money not needed shortly, based on risk capacity.

You remain responsible for bank instructions and account control. Where appropriate, we agree a periodic drawdown and review plan rather than relying on ad hoc withdrawals.

Stress-test what might change

What if inflation stays higher than expected? What if one spouse retires first, investment returns are weak, or a family member needs care? Forecasts use multiple assumptions and cannot guarantee future income or returns.

YOUR FAMILY

Plan together with your spouse or partner

01

Different pensions and different retirement dates

A teacher might retire before a spouse who works in the private sector, is self-employed or has no employer pension. We bring both sets of entitlements into one household forecast. We assess survivor benefits, nominated beneficiaries and whether one person could meet the household's costs after the other dies.

02

If one partner has little or no pension

We consider available State Pension entitlements, previous pensions, household savings and the financial consequences of one person undertaking unpaid caring responsibilities. Contribution and tax relief rules depend on the individual and cannot simply be transferred between spouses.

03

Support for adult children and future gifts

Helping with a home deposit or education should be weighed against your own retirement income and potential care costs. Gift and inheritance tax rules, including available thresholds and exemptions, depend on the circumstances and should be checked with a tax adviser.

MORTGAGES, SAVINGS & INVESTMENTS

Review mortgages, savings and investments

Mortgage repayments before and after retirement

We assess whether to repay, partly repay or retain a mortgage based on interest rate, cash reserves, early repayment costs, pension income and other priorities.

A paid-off home can reduce fixed costs, but using every euro of accessible savings to eliminate debt can create new risks. Mortgage lending or switching in later life depends on lender criteria and affordability.

Invest for the time horizon, not just for growth

We look at deposits, accessible savings, existing investment funds and suitable pension investments by purpose and time horizon. We explain volatility, charges, inflation, diversification and Irish tax treatment.

Different assets, including funds, ETFs and direct shares, can have different tax consequences. Money needed in the short term should not depend on uncertain market returns.

Consider later-life protection and estate matters

We review remaining life cover, funeral and final expenses, existing mortgage protection, wills, enduring power of attorney considerations and beneficiary arrangements.

Your solicitor handles legal documents, and tax advice is sought when required. Income protection generally has limited relevance once someone is no longer earning employment income, so existing policies should be checked before cancellation.

ILLUSTRATIVE EXAMPLES

See how retirement financial planning could work

Example 01

A primary school teacher approaching retirement

Joined before 2013Spouse still workingAVCMortgage

A teacher joined the public service before 2013 and plans to retire in the next few years. Their spouse will continue working. They have an AVC, an outstanding mortgage and savings.

Their plan could

Begin with an official pension estimate, compare retirement ages and lump sum options, and forecast the household's finances between the teacher's retirement and the spouse's later retirement.

Example 02

A teacher who joined after January 2013

Single SchemeParental leaveReduced hours

A post-primary teacher is a member of the Single Scheme and has taken parental leave and periods of reduced hours.

Their plan

Rather than estimating their pension using a final-salary formula, we check accumulated Single Scheme benefits, the administrator's record and the appropriate retirement age. We then consider the role of separate savings or AVCs where eligible.

Example 03

A couple with public and private sector pensions

Teachers' pensionDC workplace pensionTravel plansHouse deposit help

One spouse has a teachers' pension, while the other has a defined-contribution workplace pension. They want to travel and help a child with a house deposit.

Their plan could

Compare guaranteed and investment-dependent income, test spending at different retirement ages, and assess how much of the retirement lump sums should remain accessible.

The examples are illustrative, not pension quotations or personalised recommendations. Actual eligibility, investment options and taxation require individual assessment.

Illustrative examples only. Figures are simplified for illustration; actual outcomes will depend on your individual circumstances.

FROM WHERE YOU ARE TO WHERE YOU WANT TO BE

How MM Advisors can help

  1. 01
    Understand

    Understand your priorities

    Discuss retirement dates, household goals, dependants and concerns.

  2. 02
    Gather

    Gather the information

    Review official pension estimates, AVCs, State Pension contribution records, savings, mortgage and spending.

  3. 03
    Model

    Model the choices

    Compare retirement dates, income, lump sums, investment needs and realistic spending scenarios.

  4. 04
    Implement

    Put appropriate arrangements in place

    Coordinate with pension administrators, your accountant or tax adviser and solicitor where needed.

  5. 05
    Review

    Agree ongoing reviews

    Update the plan as retirement approaches, benefits start and circumstances change.

We explain any planning fees, product costs and commission arrangements before you proceed. The relevant pension administrator confirms scheme benefits and dates. Investment and tax outcomes are not guaranteed.

FREQUENTLY ASKED QUESTIONS (FAQs)

Before you build a plan, you may be wondering…

A few of the questions that often come up with people approaching retirement.

It depends on pension scheme membership, recruitment date, service history and the retirement route. Older schemes and the Single Scheme can have different minimum ages. Confirm yours with the Department of Education or scheme administrator.

Possibly, but you need a separate way to meet living costs until payments begin. Certain early retirement routes may be available subject to eligibility and actuarial reductions.

Your pension administrator should provide the authoritative estimate. We can use that estimate to assess the household's likely after-tax retirement income and spending.

Not necessarily. AVCs depend on pension entitlements, objectives, available tax relief, costs, time horizon and affordability.

Some members of older teachers' schemes may qualify for notional service. It does not generally apply to Single Scheme members, and eligibility and costs need to be checked.

Unpaid leave, job sharing and other changes can affect pensionable service or benefit accrual. Request an updated service statement and scheme estimate.

Entitlement depends on your PRSI record. Some occupational public service pensions are integrated or coordinated with the State Pension, so do not assume the two amounts can simply be added together.

Qualifying retirement lump sums count towards the lifetime Revenue limit of €200,000 tax free, with tax potentially applying above this threshold. Your available amount depends on scheme rules.

It depends on mortgage cost, repayment charges, liquidity, other retirement income and planned expenditure. We compare the options rather than automatically recommending repayment.

Potentially, but re-employment may affect pension abatement, tax and other entitlements. Check the pension scheme's rules before returning to paid public service work.

We can forecast both incomes together, including different access ages, State Pension eligibility and survivor benefits.

Yes. Income drawdowns, tax, investments, household reserves and family needs may need continuing review.

MORE HELPFUL GUIDES & ADVICE

Guides for Financial Planning for People Approaching Retirement

CLIENT TESTIMONIALS

What Our Clients Say

Take the next step

Are you unsure whether your pension and savings will cover the retirement you have in mind?

Start with a conversation about the options and the information you already have.

Money Maximising Advisors Limited is regulated by the Central Bank of Ireland – C154250

General information only, not personalised pension, tax, investment or legal advice. Benefits and eligibility depend on scheme rules and employment records. Investments may fall as well as rise and you may receive less than invested. Pension products have access restrictions. Mortgage applications are subject to lender criteria.