IORPS Directive - property and pension

IORPS Directive (Institutions for Occupational Retirement Provision)

The IORPS II Directive is an update on the original European IORPS Directive which was intended to be transposed into Irish Law on 13th January 2019. The Directive was not transposed on this date, however,  is expected to be transposed during 2019.

There are two areas of concern for Small Self-Administered Pensions (SSAPs) in the Directive.

1: The insistence that one person pension arrangements are forced to invest a minimum of 50% of their scheme in assets that are tradeable on regulated markets. This forces people down a particular investment route that might not be suitable for their needs and severely restricts choice.

2: The prohibition of borrowing for one person pension arrangements. This again restricts the choice for pension holders to invest in geared property purchases.

There may be a limited opportunity for you if you are considering using your pension/ SSAP to invest into property investments or other non-regulated investments.

We understand that existing SSAPs will not be affected by the Directive although there are no guidance notes available yet.

Want to know more? We are available to discuss your options, and we look forward to hearing from you.

Our job is to help you choose a product and structure that will help you meet your goals.

telephone | 091441188 and/or email | office@nelsonlife.ie

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