This document discusses retirement planning options for business owners in the current economic climate. It outlines a typical scenario where a business owner wants to retire but feels they cannot due to insufficient pension savings and declining business assets. The document proposes creating a "win-win-win" situation where the business owner can retire with greater security through an accelerated payment plan, the next generation gains control of the business at a low cost, and the company saves on retirement costs without impacting cash flow. However, it cautions that tax reliefs for retirement may not be available for much longer.

1. Retirement Planning in the
Current Climate
Newmarket Partnership
Chartered Accountants
T: 01 429 3600
E: tax@newmarket.ie
W: www.newmarketpartnership.ie

2. Typical Scenario
• Business Owner near retirement age
• Has children keen to take over business
• But has insufficient pension provision
• Assets have declined in value
T: 01 429 3600
E: tax@newmarket.ie
W: www.newmarketpartnership.ie

3. Typical Scenario
• Needs an income stream in retirement
• Feels he/she can’t afford to retire
• And feels he/she can’t exit at this point due to
challenging climate for business and need for experience
• Tax rates are rising so it will be harder to put nest egg
aside.
T: 01 429 3600
E: tax@newmarket.ie
W: www.newmarketpartnership.ie

4. Creating a WIN-WIN-WIN
• Business Owner retires with greater security and
accelerated payment but can still have an input
• New Generation gain control at relatively low cost
• Company saves substantially in cost of retirement
provision....
WITHOUT IMPACTING CASHFLOW
T: 01 429 3600
E: tax@newmarket.ie
W: www.newmarketpartnership.ie

5. Summary
• Tax legislation allows for generous relief for retirees
• Flexible structures may be designed to avail of reliefs
and enable retiree, company and next generation to
meet objectives
• Important to consider legal & commercial aspect as well
as tax & finance
T: 01 429 3600
E: tax@newmarket.ie
W: www.newmarketpartnership.ie

6. CONCLUSION
• But how long will reliefs be available? Commission for
Taxation, Budget 2011......SAVINGS OF THIS LEVEL
WILL BE REDUCED IN THE FUTURE!!
• CALL FOR FREE CONSULTATION
T: 01 429 3600
E: tax@newmarket.ie
W: www.newmarketpartnership.ie