Money Maximising Advisors Ltd.
Financial Plan for Families with Public and Private Sector Incomes
Different incomes and pensions, one plan for your family
One of you may work in teaching, healthcare, the civil service or another public sector role. The other may be employed privately, self-employed or a company director. You may work full-time or part-time, earn income across both sectors, or currently rely on just one earning spouse. Your financial plan should bring it all together.
We help you connect
- Two incomes
- Pensions
- Tax planning
- Mortgages
- Investments
- Protection
- Family legacy
YOUR GOALS
What would you like your money to help you achieve?
At MM Advisors, we help families connect their income, pensions, tax planning, mortgage, savings, investments and protection. We show how today’s decisions can support the life you want now and the choices you want later.
A comfortable family home. More time with your children. Money set aside for education. The freedom to reduce working hours. A retirement date you can both look forward to. These goals become easier to assess when your finances are considered together.
Your financial plan
A good family financial plan should give you
Your plan should end with an understandable action list: what to do first, what it will cost, who will arrange it and when it should be reviewed.
- A clear picture of both incomes, pensions, assets, debts and household commitments.
- A practical monthly system for bills, spending, tax reserves, savings and investments.
- Cash flow forecasts showing how major decisions could affect your future.
- Coordinated retirement planning for two people with potentially different schemes and retirement dates.
- A mortgage and investment strategy that fits your family’s priorities.
- Appropriate protection and a plan for passing wealth to the next generation.
YOUR HOUSEHOLD
A plan for your household income arrangement
Whatever your arrangement, the aim is a plan that provides for both partners and the family as a whole.
01
Self-employed spouse and an employed partner
One of you may be a sole trader or work on a self-employed basis, while the other is an employee in the public or private sector. We consider business costs, taxable profits and tax payment dates alongside the employee’s net pay, workplace benefits and pension. Business receipts are not the same as money available for family spending.
If the employee works part-time, we assess their actual income, pension contributions and benefit entitlement rather than assuming a full-time package. Your plan should show how much the household can rely on from each source and what happens if either income falls.
02
Company director and an employed partner
For a company director with a spouse employed elsewhere, we review company salary and other properly paid personal income alongside the spouse’s public or private salary. Company cash remains separate from family money. We coordinate with your accountant on remuneration, reserves, tax and appropriate employer pension funding.
The employed spouse may be full-time, part-time or on reduced hours. We consider their own pension opportunities and protection rather than treating the director’s arrangements as a substitute for both partners’ security. We also assess how the director’s income can be evidenced for a mortgage.
03
Two employees with different working hours
A full-time public sector employee and a part-time private sector employee may have different pay, pension accrual and sick pay. The reverse arrangement can require a different plan. We use each person’s actual contract, payslips and pension statements to assess the household, including overtime or bonuses where relevant.
04
When only one spouse is earning
Your family may rely on one salary, self-employed income or a director’s remuneration. We assess the dependence on that income, the level of accessible reserves needed and how the mortgage, childcare and everyday costs would be met during illness or unemployment.
We include the non-earning spouse in the plan: access to money, unpaid caring responsibilities, protection, future retirement income and any previous pensions or PRSI record. We review available household tax arrangements and, where the conditions are met, the Home Carer Tax Credit. Being a non-working spouse alone does not establish eligibility.
Personal pension relief normally requires qualifying earnings, and pension allowances cannot simply be moved from one spouse to another. If a spouse genuinely works in the family business, appropriate pay and possible pension provision can be assessed with the accountant. A business role must reflect actual work, commercial remuneration and the relevant payroll rules.
CASH FLOW
Organise your household cash flow
Turn different pay patterns into a reliable family budget
A regular public sector salary may sit alongside private salary, commission, bonuses, contract work or business profits. We help identify the income you can reasonably rely on and distinguish it from earnings that may vary.
Build essential spending around a sustainable baseline. Treat extra income as an opportunity to replenish reserves, fund a goal or invest after any tax due has been allowed for. A public sector salary can add stability, but your plan should still allow for leave, illness, reduced hours and changes in employment.
Automate accounts around your priorities
1Income
Household income account
Receives agreed contributions from each partner, with ownership and access decided together.
2Household
Bills account
Covers mortgage payments, utilities, childcare, insurance and regular commitments.
Spending accounts
Provide an agreed allowance for everyday family and personal spending.
3Savings & goals
Emergency reserve
Provides accessible money for illness, job loss, repairs or a quieter period in the business.
Planned expenses savings
Sets aside money for annual bills, holidays, education and home improvements.
Long-term saving and investment payments
Fund agreed goals at an affordable level.
For self-employed income, add a separate tax reserve based on your accountant’s estimates. Company operating money and company tax reserves remain separate from personal accounts. Only properly paid personal income should enter the household system. We help you design the transfer schedule and contribution levels. You retain control and authorise bank instructions. Review transfers when income or costs change so automation remains affordable.
Forecast the changes that matter
We model buying a larger home, a new baby, childcare and education costs, parental leave, career breaks, a change of job or retirement. We also test lower private earnings, higher expenses, inflation and weaker investment returns.
The forecast shows where you may need more savings, a different timetable or a change in spending. It includes tax and charges where relevant, and its assumptions are explained. Projections are estimates rather than guaranteed outcomes.
TAX & PENSIONS
Use tax and pension opportunities together
Review the household tax position
For married couples and civil partners, we consider the assessment basis and the allocation of available tax credits and rate bands. Under joint assessment, many credits and part of the standard rate band can be allocated between partners, but some items, including the Employee Tax Credit and the additional band for the second earner, cannot be transferred.
We also consider eligible reliefs, second jobs and the effect of a career break or a change in earnings. Unmarried partners have different tax rules; sharing a home or a bank account does not create entitlement to joint assessment.
Coordinate pension contributions for each partner
We review the public sector member’s pension and AVC opportunities alongside the private sector member’s workplace pension, PRSA or personal pension. Employer matching, available contribution relief, charges and access restrictions all matter.
€115,000current annual earnings cap for personal pension tax relief
Personal pension tax relief is subject to each individual’s age-related percentage and an earnings cap, currently €115,000 a year. Qualifying employee contributions already being paid reduce the scope for additional relieved contributions. Multiple income sources need careful assessment and do not create a separate earnings cap for each job. Pension allowances cannot simply be transferred between spouses.
The right balance depends on your goals and the relief available to each person. We assess both partners’ retirement security while retaining enough accessible savings for the years before pensions can be drawn.
Understand private sector auto-enrolment
Where relevant, we include MyFutureFund in the review. Eligibility and exemptions are assessed by employment.
Having a public sector pension in one job does not automatically exempt a separate private job. We check whether qualifying pension contributions are recorded through payroll for the relevant employment and compare options before recommending changes.
When one of you owns a business
We consider salary, business reserves and appropriate employer pension funding with your accountant. Employer PRSA contributions follow different rules from personal contributions: the current limit before an employee benefit-in-kind charge arises is 100% of that employee’s annual emoluments from the employer. Affordability, deductibility and pension limits still need assessment.
100%of that employee’s annual emoluments from the employer, the current employer PRSA limit before a benefit-in-kind charge
A sole trader, your own limited company and a PAYE or director umbrella arrangement have different responsibilities and tax consequences. The appropriate structure depends on the work and the actual engagement. Company profits are not automatically available to spend personally; extraction taxes and possible close company surcharges also need consideration.
RETIREMENT
Bring your retirement dates into one plan
Understand what each pension will provide
We review public sector scheme membership, joining dates, service or accrued benefits, pensionable pay, AVCs and benefit statements. Older public sector schemes and the Single Public Service Pension Scheme can operate differently.
For the private sector partner, we review current and previous pensions, employer contributions, investment choices, charges and retirement options. We also examine each person’s State Pension position and PRSI record. The relationship between occupational benefits and the State Pension depends on the scheme; it should not be assumed that every pension is simply added on top in full.
Could one of you retire first?
Your preferred retirement dates may differ. One partner may retire while the other keeps working, or both may gradually reduce hours. We forecast household income through each stage and identify any gap before occupational or State Pension benefits become payable.
Where eligible, cost-neutral early retirement brings forward public sector pension benefits with actuarial reductions. We compare this with preserving benefits until the appropriate age. Scheme eligibility, pension access and reductions must be confirmed before relying on a proposed retirement date.
Plan for career breaks and part-time work
Reduced hours can change income, pension accrual and contribution capacity.
We model the effect on both partners and review how childcare or caring responsibilities are funded. A partner taking time away from paid work should remain central to the plan, with access to money and appropriate protection.
Keep money accessible for the years before retirement
Pension saving can be tax efficient, but access is restricted.
A family planning a career break or earlier retirement may also need savings or investments outside pensions. We match these resources to the timing of the goal and the level of loss the family can afford.
Review decisions when work changes
A promotion, redundancy, move between sectors or business sale can change your plan.
We help assess the effect before making decisions about pension transfers, early access or taking lump sums. Any transfer should be assessed for costs, benefits and rights that could be lost.
HOME, SAVINGS & INVESTMENTS
Balance your home, savings and investments
Mortgage advice for two different income profiles
Lenders may assess public salary, allowances, private salary, bonuses and self-employed earnings differently. We help assemble the relevant evidence and assess mortgage options against your household budget.
- Buying your first family home or moving to a larger property.
- Reviewing a mortgage rate, switching lender or changing the term where appropriate.
- Comparing mortgage overpayments with pension funding and investing.
- Checking affordability if one partner reduces hours or retires earlier.
Company turnover and retained profits do not automatically count as personal borrowing income. Lending criteria, affordability checks and documentation requirements vary. A mortgage should fit the family’s long-term plan as well as the lender’s assessment.
Give each savings goal its own time horizon
Money for a house deposit or an approaching education bill needs a different approach from money intended for retirement many years away. We help distinguish emergency cash, planned spending and long-term investment capital.
We review suitable funds and, where available through an appropriate arrangement, share or ETF exposure. Recommendations consider diversification, investment risk, charges, tax treatment and the ownership of the investment. Irish tax rules vary between products, so after-tax outcomes matter alongside returns.
Invest for children without losing sight of your own future
We help estimate future education costs and decide how much to save regularly.
Ownership matters: keeping an investment in a parent’s name differs from gifting it to a child. We consider control, access and gift tax implications before deciding how to structure it.
Sharia compliant and values-based preferences
Tell us if faith or other values influence your investment decisions. We can explore suitable Sharia compliant options, subject to provider and platform availability, and review the fund’s screening methodology, oversight, charges, risks and Irish tax treatment.
Sharia screened investments are not necessarily low risk, and pension availability varies. Any purification requirements should be discussed using provider guidance and your preferred religious adviser. Investment screening does not establish the religious suitability of a conventional mortgage, account or insurance policy; those arrangements need separate consideration.
PROTECTION & LEGACY
Protect your family and plan your legacy
Understand the gaps between employer benefits
Public and private employers may offer different sick pay, death benefits and pension survivor benefits. We review both sets of benefits against your mortgage, spending, childcare and future plans.
We assess life assurance, mortgage protection, specified illness cover and income protection where appropriate. Existing policies, benefits, exclusions and underwriting all form part of the review. A self-employed partner may face a different income risk from an employee, and job changes can affect employer-provided cover.
Include the value of unpaid care
If one partner steps back from employment, the financial effect of their illness or death can still be substantial.
Childcare, household support and the other partner’s ability to keep working need to be considered. Protection should reflect the family’s responsibilities as well as each person’s salary.
Plan for gifts and inheritance tax
Your home, savings, pensions, investments and business interests need to be considered under their respective inheritance rules. We help estimate potential Capital Acquisitions Tax — CAT — exposure and assess how beneficiaries could meet a liability.
€3,000current small gift exemption, per giver, per recipient, per calendar year
The current small gift exemption allows a person to give up to €3,000 to a recipient in a calendar year without CAT. Two parents could each gift €3,000 to a child, totalling €6,000 a year, where each gift is genuinely made by that parent. Exempt gifts do not use the recipient’s group threshold. Other gifts and inheritances must be considered with relevant earlier taxable benefits.
We can explore qualifying Section 72 life assurance to help fund inheritance tax, subject to suitability and policy conditions. Gifts of property or shares can have other tax consequences too. A gifting plan should leave enough resources for your own security.
Coordinate ownership and legal arrangements
We work with your solicitor and tax adviser where needed on wills, asset ownership, business succession and enduring powers of attorney. Pension nominations and survivor entitlements should also be reviewed; their effect depends on the scheme and circumstances.
Unmarried partners do not have the same automatic tax and inheritance treatment as spouses or civil partners. This can be particularly important for the family home, life cover and pension benefits.
Keep the plan current
Review after a birth, marriage, separation, career change, mortgage change or significant gift or inheritance.
Agree a review schedule so the plan continues to reflect your family.
ILLUSTRATIVE EXAMPLES
See how a family plan could work
Example 01
A public sector employee and a private sector partner
TeacherPrivate sector spouseTwo childrenMortgage
A teacher and their spouse, a private sector employee, have two children and a mortgage. The teacher has a public sector pension and the spouse has a workplace pension. They have savings, but annual bills and education costs are paid from the same account. They would like one partner to reduce hours and both to retire at a similar time.
Their plan could
Their plan could separate monthly spending from annual costs, review both pension contribution levels and forecast the effect of reduced hours. It would assess whether their retirement dates align, how to fund any gap, and how much can reasonably go towards the mortgage, savings and investments.
Example 02
A public sector employee and a business owner
NursePartner runs a limited companyMoving home
A nurse and their partner, who runs a limited company, have variable business income alongside a regular salary. They want to move home and build retirement savings while maintaining cash for the business.
Their plan could
Their plan could establish a reliable level of household income, retain appropriate business and tax reserves, assess employer pension funding and prepare the financial evidence for a mortgage application. It would also review how illness or a downturn in the business could affect the family.
These examples illustrate the process. Recommendations and amounts depend on verified information, individual advice and product availability.
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
- 01Understand
Understand your goals
We discuss your family, careers and the decisions you want to make.
- 02Review
Review both financial positions
We bring together earnings, spending, pensions, debts, assets and existing policies.
- 03Plan
Build and explain the plan
We show the forecasts, options, priorities, costs and a clear action list.
- 04Implement
Help put it into practice
We arrange suitable products within our service scope and coordinate with your accountant, solicitor or pension administrator where needed.
- 05Review
Agree ongoing reviews
We establish the review arrangements so the plan can respond to changes in your life.
We explain the scope of our service and any planning fees, product charges or commission arrangements before you proceed.
FREQUENTLY ASKED QUESTIONS (FAQs)
Before you build a plan, you may be wondering…
A few of the questions that often come up with families with public and private sector incomes.
Is this just for families with a business?
No. It is also for families where one partner works in the public sector and the other is a private sector employee, or where one person earns income in both sectors.
Should we put more into the public sector AVC or the private pension?
We compare contribution relief, employer matching, scheme limits, charges, access and both partners’ retirement needs. The appropriate balance also depends on how much accessible money your family requires.
Does a public sector pension mean we are already well provided for?
It is an important part of the plan, but the amount depends on scheme membership, service or accrual and retirement timing. We assess it against the income your household wants and the other partner’s benefits.
Can we both retire at the same time?
We can model that goal. Age differences, pension access rules, early retirement reductions and savings may create a gap that needs to be funded.
Can we plan together if we are not married?
Yes. We include both partners’ goals and finances while considering the different tax, ownership and inheritance rules that apply.
Can we include a spouse who is taking a career break?
Yes. We consider current household spending, pension gaps, protection and future work plans. Personal pension tax relief normally requires qualifying earnings; it should not be assumed that a non-earning partner can use the other partner’s pension allowance.
Can family members work in our business?
Where there is genuine work and a business need, this can form part of the plan. Pay must reflect commercial duties and hours, with appropriate payroll, records and employment-law compliance. Family-employment PRSI rules and pension eligibility should be checked with your accountant.
Do we have to move our existing pensions and investments?
No change should be recommended simply because you are creating a plan. We assess existing arrangements and explain the reasons, costs and consequences of any proposed change.
MORE FINANCIAL PLANS
Explore other financial plans
MORE HELPFUL GUIDES & ADVICE
Guides for Family Financial Planning
CLIENT TESTIMONIALS
What Our Clients Say
Take the next step
Bring both incomes, both pensions and your family’s goals into one clear financial plan.
Tell us what you want to achieve, and we will discuss how MM Advisors can help.
Money Maximising Advisors Limited is regulated by the Central Bank of Ireland – C154250
General information only. Tax treatment depends on individual circumstances and may change. Investments can fall as well as rise and you may get back less than you invest. Pension access restrictions apply. Mortgage approval is subject to lender criteria and affordability. Product eligibility and availability vary.