DARACH Honan is urging businesses who run company pension schemes to prepare for EU directives which have altered the pension landscape.
The Clonlara native has entered his second year in business, with Honan Financial Services celebrating its one-year milestone in July. Having joined the Ennis and Shannon Chambers in recent months, the financial expert is continuing to expand his growing client-base in County Clare and the Midwest. “As a Clare man I have a huge interest in how the local economy is going and it’s great to see the growth of businesses in Clare and to tie in with them in making sure they’re getting good sensible financial planning from someone they know and can trust,” explains Darach.
Having worked in the industry for almost a decade helping both public and private sector workers with their financial planning, the 2013 All Ireland winner established Darach Honan Financial Services last year, a busy period which also has seen him married and celebrate the arrival of his first child.
PENSION REGULATIONS
Darach outlines that there are currently challenges with regard to pension regulations and he is urging any business owners with questions on new directives to contact him for advice.
“I’ve found since I set up my own company there’s been a big uptake from the private sector, business owners and private client work. The pensions industry is an ever-evolving area and new EU Directive (IORP ii) will force some companies to change their pension arrangements going forward. Company pension schemes with fewer than 100 members will have new regulatory burdens placed on them which may force them to look at alternative arrangements. These companies should consider utilising a master trust to lower the future cost of running the scheme and should research the market in conjunction with a financial planner to decide which mastertrust is best suited to them.
“Individuals will also have seen a change from July of this year where the pensions authority have stopped one-man executive schemes being allowed to be issued and that has had a huge impact on business owners and I’ve been working with business owners to overcome that challenge.”
Darach notes, “The industry is working with the pensions authority to come to a solution where the private sector, business owners and company directors will be allowed to fund a pension again.” He adds that despite the obvious benefit of starting a pension at a young age, it’s never too late for business owners to take advantage of tax benefits. “Pension contributions receive generous tax reliefs and incentives, funding a pension is a great way to extract cash from a business and it is never too late to start”
A finance graduate of UCC with a Masters in Financial Services from UL, Darach has expertise in a wide range of areas including financial planning, retirement seminars and planning,
and he strives to “give people an understanding of what to expect from their pensions before they do retire. Approaching retirement can be a cause of stress for many workers so I get a great sense of satisfaction from sitting down with clients, explaining how their pensions will work and helping them to optimise their pension before their retirement date”
EMPLOYEE PENSION SCHEMES
Addressing staffing challenges facing employers, Darach believes a very cost-effective solution to avoid staff churn is through pension schemes. “The last couple of years has been referred to as ‘the Great Resignation’ as many people have left jobs in search of greener pastures. Employers are looking at ways to retain talent. One of the most cost-effective ways of doing that is to apply a generous employee benefit package which would involve an employee pension scheme – it’s cost effective because employers receive tax benefits.
“Another benefit to consider is group risk schemes which would offer a death in service benefit and income continuance in the event and employee is sick and unable to work We’re seeing a lot of interest in that from employers recently, it makes their staff feel appreciated and gives them a long-term career path at their current employer.”
TALK TO DARACH
Darach says he’s always happy to speak to clients about their financial planning needs, however he admits that the subject of hurling is never far from clients’ minds particularly in Clare. Despite a relatively short career due to forced retirement aged 26, Darach scored a crucial goal in Clare’s 2013 All-Ireland win as well as being a crucial cog in the U21’s All Ireland win in 2009. “I’ve built up great connections over the years through the hurling and it’s a common language whereby I’m always happy to talk to people about hurling and people in Clare especially where we’re passionate about it, it’s a good way to find common ground with people. My connections to the GAA have been huge for me, as well as linking in with people like the GPA who gave me good help when I set up the company initially.
