…Hello Long-Term Financial Success!

If, like me, you had big fitness plans for 2025 and failed by mid-February, don’t beat yourself up. There’s still time to get back on track…but that’s not what I’m talking about today! Fitness goals aside, a financial plan for 2025 is still within reach. 

Beyond Resolutions: A Financial Plan That Lasts Longer Than January

At the start of a new year, many of us set out with the best intentions—whether it’s improving our health, career, or finances. Financial planning is one area where small, consistent actions can lead to long-term security and prosperity. Reviewing your financial strategy regularly ensures that your wealth is working for you, not against you.

Here are five key areas to focus on to keep your financial plan in shape this year.

Are You Maximising Your Pension?

A well-structured pension is one of the most tax-efficient ways to build financial security for retirement. With recent changes introduced in Budget 2025, now is the perfect time to review your pension strategy.

  • Changes to the Standard Fund Threshold (SFT): The limit on tax-efficient pension savings is increasing from €2m to €2.8m by 2029, offering opportunities for higher contributions.
  • Company Pensions & PRSAs: Changes to company pension rules, particularly restrictions on employer PRSA contributions, mean that business owners should consider alternative pension structures such as a master trust for greater tax efficiency and investment flexibility.
  • Maximising Contributions: If you’re a higher-rate taxpayer, increasing your personal pension contributions now can provide immediate tax relief while strengthening your retirement fund.
  • Consolidating Pension Pots: Many individuals accumulate multiple pensions over their career, often with varying fees and investment strategies. A consolidated pension can streamline your retirement savings, ensuring a clear and effective investment approach.

Is Your Cash Working for You?

Irish households continue to hold substantial sums in low-interest deposit accounts. With inflation and fluctuating interest rates, it’s important to ensure your savings strategy aligns with your financial goals.

  • Emergency Fund: Aim to keep three to six months’ worth of expenses in a readily accessible account if you’re working, and six to twelve months’ worth if retired.
  • Balancing Risk & Return: While cash is essential for short-term needs, holding excessive amounts can erode value over time due to inflation. Investing in growth-oriented assets can help maintain purchasing power over the long term.
  • Alternative Cash Options: With money market fund interest rates expected to decline in 2025, exploring investment options such as diversified portfolios could offer a better long-term return.

Planning for Your Own Future—and the Next Generation

Wealth planning isn’t just about meeting your own financial needs—it’s also about ensuring a smooth transition of assets to the next generation.

  • Assess Your Retirement Needs: Understanding how much you need for a comfortable retirement allows for informed decisions about gifting or passing on assets.
  • Capital Acquisitions Tax (CAT) Changes: Recent increases in CAT thresholds mean you can now pass on more tax-efficiently—€400,000 from parent to child, €40,000 between other family members, and €20,000 to non-family members.
  • Small Gift Exemption: You can give up to €3,000 per year, per recipient, tax-free—allowing for a gradual and tax-efficient transfer of wealth. Over 15 years, a couple could transfer €90,000 to each child without affecting their CAT threshold.
  • Structuring Wealth Transfers: Lending to children or using a family partnership can be effective ways to pass on wealth while maintaining control.

Preparing for the Unexpected

No one likes to think about worst-case scenarios, but proper financial planning ensures that your loved ones are protected no matter what happens.

  • Have You Made a Will? If not, your assets may be distributed according to intestacy laws, which might not align with your wishes.
  • Is Your Insurance Coverage Sufficient? Life insurance, income protection, and inheritance tax planning (such as Section 72 policies) can provide security for your family and safeguard your legacy.
  • Funding Inheritance Tax Liabilities: If your assets include property or business interests, a Section 72 life insurance policy can help your beneficiaries pay inheritance tax without the need to sell key assets.

Do You Have a Financial Plan—And Is It Up to Date?

A well-structured financial plan should evolve with your life circumstances. Whether you’re growing your wealth, preparing for retirement, or planning for succession, regular reviews ensure that your strategy remains aligned with your goals.

At Lynx Financial Services, our personalised financial planning approach spans pensions, tax planning, wealth structuring, succession planning, protection, and investment management. We work with you to develop a tailored strategy that adapts to changing markets, regulations, and personal circumstances.

Planning for Today, Tomorrow, and the Unexpected

At Lynx Financial Services, we believe financial planning shouldn’t be complicated or overwhelming. That’s why we take a personalised, straightforward approach, helping you save for today, tomorrow, and the unexpected.

No jargon. No hidden fees. Just clear, honest advice tailored to your goals.

Whether you’re looking to grow your investments, plan for retirement, protect your family, or secure the right mortgage, our expert advisors are here to guide you every step of the way. Your financial security is our priority, and as a member of Brokers Ireland, regulated by the Central Bank of Ireland, you can trust that you’re in safe hands.