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As a business owner, you spend countless hours building a successful company, ensuring your clients are happy, and keeping the day-to-day operations running smoothly. But how much time have you invested in planning for your own financial future?

At Lombard Accountants we know that while it’s easy to focus on the immediate needs of your business, pension planning is one of the smartest financial decisions you can make — both for your long-term well-being and for the financial health of your company.

Why Pension Planning Matters

Unlike employees who may benefit from workplace pension schemes, self-employed individuals and company directors often overlook retirement planning. Yet, the advantages of contributing to a pension as a business owner are significant:

• Tax Efficiency: Pension contributions made through your limited company are typically considered an allowable business expense. This means they can reduce your corporation tax liability while building your personal retirement fund.
  

• Wealth Diversification: Investing in a pension allows you to grow your wealth outside the business, offering financial protection in case your company faces future challenges.
  

• Future Security: A well-funded pension gives you the freedom to step back or retire on your terms, without relying solely on the value of your business as your nest egg.
  

Options for Business Owners

Depending on your structure, you have a few powerful pension options:

• Personal Pension Plans: Suitable for sole traders or self-employed individuals. Contributions are made from post-tax income but are eligible for income tax relief.
  

• Executive Pension Plans (EPPs): Designed for company directors, where the business makes contributions directly. This approach often allows for higher annual contributions than a standard personal pension.
  

• PRSA (Personal Retirement Savings Account): Flexible and portable, a PRSA can work for many business owners, especially those starting out or in transition.
  

Get Professional Advice

Pension planning doesn’t have to be complex, but it should be strategic. Working with a qualified accountant or financial adviser ensures your pension contributions are aligned with your business goals and tax position.

Start Sooner Rather Than Later

The best time to start pension planning is now. Even modest, regular contributions can grow significantly over time thanks to compound interest. Think of it as paying your future self — a reward for the years of hard work you’ve already put in.

Your business is a source of income today. Make sure it also supports your lifestyle tomorrow. A strong pension strategy helps turn business success into personal financial freedom.

If you would like to discuss your business needs. Call Lombard Accountants on (01) 678 9960 or email hello@la.ie

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