Work Overview
LATEST PROJECTS
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque

Frequently Asked Questions
Page Author: Christina Kearney QFA RPA
Frequently asked questions
- 01
Why Joining a Company Pension Scheme is a Smart Choice
What is a Company Pension Scheme? A company pension scheme is a tax-efficient way to save for retirement, where both the employee and employer contribute. In many cases, the employer matches contributions, providing significant value.
The Benefits of Joining
Tax Relief on Contributions: Contributions to a pension scheme in Ireland benefit from tax relief. For example, contributing €150/month from your payslip can instantly grow to €250 due to tax benefits.
Employer Matching Contributions: With a typical "5 and 5" scheme, the employer matches your 5% contribution, doubling the value to €500/month. This is unmatched by any other savings method in Ireland.
Long-Term Growth Potential: Contributions are invested in stocks, bonds, property, and other assets, with an assumed 6% annual growth. Over 35 years, this can grow a total of €63,000 in contributions into €600,000 for retirement.
Tax-Free Lump Sum: At retirement, you can take 25% of your pension savings as a tax-free lump sum. For example, a pot of €600,000 allows you to withdraw €150,000 tax-free.
Retirement Income Explained
Remaining funds can be placed in an Approved Retirement Fund (ARF) or annuity, which pays a steady income throughout retirement.
Combined with the state pension, this can provide €2,750/month—close to your working income after expenses like mortgages and children are accounted for.
Why This is a No-Brainer
Value Proposition: Your €150/month contribution grows to €600,000—a 10x return over time.
Effortless Saving: Contributions are deducted automatically from your payslip, growing tax-efficiently in the background.
FAQs About Company Pension Schemes
What happens to my pension if I pass away? The funds transfer to your spouse or estate, ensuring your contributions benefit your family.
What if I need early access? Some schemes allow early access to funds under specific circumstances.
How does this compare to regular savings? Pension schemes far outperform regular savings due to tax relief and employer matching.
Next Steps Looking to join or set up a company pension scheme? Ethico specializes in employee benefits, Additional Voluntary Contributions (AVCs), and optimizing retirement plans. Contact us today for personalized advice, or explore our other videos for more insights! Contact Us
- 02
- 03