1. What Are the Key Differences Between With-Profits and Unit-Linked Plans?
With-Profits plans offer smoothed returns and a Capital Guarantee and for these reasons, they are generally considered lower risk. Unit-Linked plans offer a range of investment options with returns directly linked to market performance.
2. What is the retirement age?
The retirement age under a Personal Pension Plan is chosen by you, and you can choose to access your private pension benefits at any time between the ages of 61 and 70.
3. How Do These Plans Supplement State Pensions?
Both plans aim to build a retirement sum that provides a tax-free cash sum of up to 30% of your retirement pot, followed by a regular income, supplementing the State Pension.
4. Are Contributions to These Plans Eligible for Tax Credits?
Yes, contributions to both plans may qualify for a tax credit of up to 25% of your annual contributions, subject to eligibility criteria.
5. Can I Change My Investment Choices in a Unit-Linked Plan?
Yes, you can change your investment choices in a Unit-Linked plan, subject to certain conditions and potential charges.
6. What Happens to My Plan If I Die Before Retirement?
Both plans offer a death benefit. The With-Profits plan pays 101% of the plan value, while the Unit-Linked plan pays the higher of the policy account value plus €2,000 or 101% of the account value.
7. How do I receive my regular income upon retirement?
Upon reaching your chosen retirement date, you may choose to take out up to 30% of your accumulated personal pension savings on that day as a tax-free lump sum. The remainder of your pension savings will be invested in your choice of an Annuity product or Programmed Withdrawals product.
Conclusion
Understanding these key aspects can help in making an informed decision about which personal pension plan best suits your retirement goals and financial situation.
This article is intended to provide high-level information about the products mentioned for educational purposes and should not be interpreted as advice. Please read the Key Features Document and Policy Document of each plan to understand the benefits further.