Pension Property Case Studies

Company Director: No Pension

John is 55 years old and owns his own company. He set this company up 25 years ago but has never contributed to a pension with his earnings. Can he avail of pension property?

In order to avail of the benefits of pension property, John will first need to accrue a self-administered pension of sufficient value. As he is a company director, John can establish a SSAS, or Small Self-Administered Scheme. This is a tax-efficient occupational scheme, suitable for both controlling directors and employees. As John has not made any pension contributions over the course of his employment with his company, he is entitled to fund for paid years and contribute a lump sum to the SSAS. ITC’s Maximum Funding Calculator can be used to calculate the level of contribution allowable. This calculator takes into consideration a variety of factors including years' of service, salary, your age, your retirement ages, etc. For example, if John is married and on a salary of €50,000, he has the potential to contribute over €900,000 to his pension.

John can now contribute a lump sum to his SSAS and proceed with purchasing a property through this self-administered pension scheme. The rental income of this property will flow back into his pension and build as a cash fund or can be drawndown and provide a steady income in retirement. 

If you are interested in establishing a pension or investing in property with your pension fund speak to your financial advisor

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