The Irish Aircraft Leasing Industry has been facing some challenges and dilemmas regarding Pensions in recent years. One of the major concerns for Executives in the industry is the transfer of their pension benefits from ex-Employer Schemes into private ownership, and the management of these benefits by professional impartial Financial Advisors. Another issue is the Pension Fund Thresholds and Excess Tax, which have caused uncertainty and confusion for many Executives. The most recent news in the industry, highlights the growing demand for sustainable aviation finance solutions and the need for innovative strategies to address the ongoing challenges of the industry. These developments have highlighted the importance of effective financial planning and pension management for Executives in the Irish Aircraft Leasing Industry.
Defined Benefit Scheme and Pension Fund Thresholds
For Executives in a Defined Benefit Scheme or with some of their pension benefits in such a scheme, FJ Hanly & Associates can help navigate the Pension Fund Thresholds and Excess Tax. F J Hanly & Associates help clients crunch the numbers, enabling them to identify any future pension tax liabilities. Once identified, such liabilities can be managed or even reduced, and the risk exposure to pension assets reduced, since taking risks may not be adequately rewarded. The table below illustrates the limits and ways of offsetting Lump Sum Tax to increase the pension fund that can be built up.
Maximum Pension Fund- Standard Fund Threshold (SFT) | €2,000,000 |
Anything over SFT Taxed @ | 40%* |
Maximum Tax-Free Lump Sum | €200,000 |
Lump Sum Tax (next €300,000) @ | 20% |
*Important to note that any Lump Sum Tax can be offset against Excess Tax. Therefore, a fund of €2,150,000 can be built up. | |
ARF (Approved Retirement Fund) and Investment Portfolio Management
FJ Hanly & Associates manages many ARF Portfolios for clients who have transitioned from pre- to post-retirement, as well as many Investment Portfolios. As a result, we are always up to date with the latest trends and insights in Wealth Management. F J Hanly & Associates has access to hundreds of specialised funds and Multi-Asset Portfolios, and we can provide insights into which of the Fund Managers are performing well and those that are not.
Who We have helped
In 2016, one of our Dublin based Aircraft Leasing Executives reached retirement age at 65, and having drawn his maximum lump sum, invested the balance of his Pension Fund in an ARF. The ARF Investment amounted to €712,000, and at the time, we recommended a Medium to High Risk Multi Asset Fund with one of our best performing Fund Managers. Our client completed a Risk Profiler, and it was carefully established that he was a medium to high-risk investor. On our Investment Risk Scale of 1-7, one being low risk, he was assessed as being a 5.
Each year in August, we meet our client in Dublin to review his ARF Portfolio fund performance and discuss income requirements and any changes in circumstances. It is also important to make sure he continues to be comfortable with the level of investment risk he initially chose. As long as the client doesn’t want a change and as long as the chosen Fund Managers are performing relative to their peers, we try to recommend clients stay invested through good times and bad. However, we do have a few tricks up our sleeve to help maximise investment returns for clients.
At our client’s last review in September 2022, having invested €712,000 in 2016, our retired Leasing Executive’s ARF Portfolio is valued at €933,400, even though he has also taken a total income in the intervening six years of €217,000. This is an annual return of circa 10% p.a. over 6 years. Not bad for a mainstream medium risk investment portfolio comprising of Equities, Commodities, Bonds and Cash… not bad considering this performance followed a difficult 2022 for investment markets, and not bad for an investment that requires little input and work from the
Investor.
Contact FJ Hanly & Associates Today
FJ Hanly & Associates is a Financial Advisory Firm that has built a proud reputation over time by providing top class financial and pension advice to Executives in the Aircraft Leasing Industry. Our Company’s focus is on helping Executives transfer their pension benefits from ex-Employer Schemes into private ownership, and managing them under the guidance of professional Impartial Financial Advisors.
FJ Hanly & Associates is a specialised team with over 30 years of experience in the field of financial and pension advice. Our Company prides itself on its service levels, accessibility, and technical knowledge. With this wealth of experience, our team has developed a deep understanding of the intricacies of financial and pension advice, which enables us to provide our clients with top-quality advice.
If you are an Executive in the Aircraft Leasing Industry, with concerns about pension benefits and financial planning, consider contacting FJ Hanly & Associates. We do not charge for an initial zoom meeting, and we are always ready to provide prompt and reliable advice. With our wealth of experience, accessibility, and technical knowledge, FJ Hanly & Associates may just be the valuable pension resource that you are looking for.
Fund values can fall as well as rise and past performance is not necessarily a reliable guide to future performance. Values can also be affected by currency exchange rates. These risks apply when investing in most Unit Linked Funds and you could lose some or all of your money when investing in these funds or portfolios.
