Pensions & Property
The Irish pension landscape is changing rapidly. 2021 saw a plethora of publications, primarily from the Pensions Authority setting out the framework under which pension schemes will have to operate. There is more to come between now and when Auto Enrolment (a pension investment Scheme making personal pensions mandatory for all employees) arrives in early 2024 as part of Government’s strategic plan to increase pension coverage in Ireland to help combat long term pension deficits as our population ages.
In 2021 IORP II was transposed into Irish law, and this has been a game changer for those that want to invest and control what their pension scheme invests in, the popular asset being property. While the pension framework has become more complicated and requires sound professional advice to navigate through, it is still possible to invest in unregulated assets such as property or assets not readily available through off the shelf pension scheme. Indeed, it remains possible to borrow within a pension arrangement to invest in property. The key is to understand each pension arrangement, and which one is right for you?