How these business owners plan to have €50,000 income each year for the rest of their lives.

Sean (age 48) and Mary (age 48) are married. They have 2 children, and they own their company 50/50. They have both worked in their company for the last 15 years. Their salaries from their company are €45,800 and €27,800. These salary levels mean that they only pay income tax at the 20% rate and they avoid paying any income tax at the 40% rate.

In the last 2 years their company has started to become more profitable, and they are now becoming liable for Corporation Tax @ 12.5%.

They want to make sure that they don’t pay too much tax and they want to make sure that they always have enough income each year for the rest of their lives.

I outlined the following plan to them (they currently have €15,000 each in their pensions) 

  • put €40,000 total each year from their company into their 2 pensions (€20k into each) for the next 17 years to age 65.
  • This will save them €5,000 in corporation tax each year (assuming their profits are at least €40k each year)
  • At age 65, at 4% yearly growth, I calculated that they will have a total pension fund of just over €1M between the two of them.
  • At age 65 they can take a tax free lump sum from their pensions of €251,584 between them and still have €754,754 total in their two pensions.
  • The lump sum and pensions together have the potential to provide them with an annual income of €50,500 (Total between the two of them per year) for the next 25 years (up to age 90) based on a 2% growth rate.

This example shows how Sean and Mary can provide a pension for themselves tax efficiently up to age 90. They liked the simplicity of the plan and decided to implement it straight away.

If you would like to learn more, please get in touch on 01 5267770 or email

Dublin: 01 5267770
Wexford: 053 9110380



These examples are for illustration purposes only

Past performance is not a reliable guide to future performance

The value of your investment may go down as well as up

There is no guarantee that the accumulated retirement fund will provide any specific level of retirement income