Executive Pensions

If you’re a director or senior executive of a company, you probably lead a hectic business life. But you also enjoy substantial rewards – a good salary, a company car and various other fringe benefits. Why shouldn’t you? You work hard for them, and your own money could well be tied up in the business, and therefore at some risk. But if you enjoy an excellent standard of living today, have you made sure that it won’t drop when you retire? This is where an Executive Pension Plan from Aviva might be relevant to you.

What is an Executive Pension Plan?

Executive pension plans are designed for people in employment whose employer wants to make a contribution. An executive pension plan is set up by trustees (usually your employer) on your behalf.

Who can take out an Executive Pension Plan?

An Executive Pension Plan can only be set up by an employer for an individual director or an employee.

What are the benefits of an Executive Pension Plan?

  • The Plan – set up under irrevocable trust for you and your dependants – will be a secure asset, completely separate from your business affairs.
  • It will provide benefits at retirement, up to Revenue limits.
  • A wide range of attractive funds – plus low risk investments in times of stockmarket uncertainty.
  • When you retire, the full accumulated fund value of the Plan will be used to provide you with your retirement benefits – normally a tax-free cash lump sum, plus an income for the rest of your life.
  • Instead of securing your pension at retirement, you may also have the option of investing its value in an Approved Retirement Fund (ARF).

What happens when you retire?

Depending on your circumstances there are different options for you to consider at retirement. You have the option to take a tax-free lump sum and may be able to use the balance to avail of:

  • A Pension Income for Life (an Annuity)
  • An Approved Retirement Fund (ARF)
  • A Taxable Lump Sum

Important information about tax

When we talk about tax, what we say is based on our understanding of current law and tax practice. If there are any changes to law and tax practice in the future they could affect how much your plan is worth and your tax liability. Your plan could also be affected by changes in your personal circumstances.

Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.
Warning: Past performance is not a reliable guide to future performance.
Warning: This product may be affected by changes in currency exchange rates.
Warning: Withdrawals and switches from funds investing directly or indirectly in property may be deferred for up to 6 months.
Warning: Withdrawals and switches from all other funds may be deferred for up to 3 months.

Back to top