How Additional Voluntary Contributions work, the tax relief available, and illustrative examples of what they could mean for your retirement savings.

Additional Voluntary Contributions (AVCs) are extra contributions you can make towards your pension, in addition to the regular contributions you already make to an occupational pension scheme. For many employees and public servants, they can be a tax-efficient way of increasing their retirement savings.

The key benefit: Income Tax relief at your marginal rate

AVC contributions can qualify for Income Tax relief at your marginal rate, subject to Revenue limits. For example, if you pay Income Tax at 40%, a €100 AVC contribution on which full tax relief is available could have a net cost of €60. For someone paying Income Tax at 20%, the equivalent net cost could be €80. Income Tax relief does not extend to USC or PRSI.

Investment returns within the pension fund generally accumulate free of tax while they remain invested, giving pension saving an important tax advantage compared with many forms of personal investment.

Who can contribute, and how much

If you’re a member of an occupational pension scheme, whether in the private or public sector, you may be able to make Additional Voluntary Contributions to increase your retirement savings. AVCs may be made through your existing scheme or, depending on the circumstances, through a PRSA used for AVC purposes. If your occupational pension scheme doesn’t provide an AVC facility, your employer must make access to a standard PRSA available for AVC purposes. This means that being unable to make AVCs directly to your employer’s scheme doesn’t necessarily prevent you from making additional pension contributions.

The amount of your pension contributions that can qualify for Income Tax relief depends on your age and earnings. The limits apply to your own pension contributions in total, including your normal employee contributions and any AVCs.

• Under age 30: 15%
• Age 30–39: 20%
• Age 40–49: 25%
• Age 50–54: 30%
• Age 55–59: 35%
• Age 60 or over: 40%

These percentages apply to earnings up to €115,000 a year. Your normal employee pension contributions and AVCs both count towards your personal limit. Employer contributions are not included when calculating this limit.

For example: if you’re 45 and earn €80,000 a year, up to 25% of your earnings, or €20,000, may qualify for Income Tax relief on pension contributions. If you’re already contributing €8,000 personally through your employer’s pension scheme, this could leave scope for a further €12,000 AVC to qualify for relief, subject to your individual circumstances.

What happens at retirement

AVCs form part of your overall retirement benefits and are subject to the rules applying to your pension arrangement. Depending on the type of arrangement and your circumstances, you may be able to take part of your retirement benefits as a lump sum, with the balance used to provide retirement income or invested through an appropriate retirement arrangement.

Under current tax rules, the first €200,000 of retirement lump sums received over your lifetime is tax-free. The portion between €200,000 and €500,000 is subject to Income Tax at 20%, while amounts above €500,000 are taxed at the higher rate.

The remaining pension benefits may, depending on the arrangement and your circumstances, be used to provide retirement income, for example through an annuity or an Approved Retirement Fund (ARF). Tax generally applies when taxable pension income or withdrawals are received.

Unlike ordinary savings, pension funds are intended for retirement and access is restricted. This makes AVCs more appropriate for money you can afford to set aside for the longer term.

A worked example: AVC vs personal saving

Say you’re 40, a higher-rate (40%) taxpayer, and you can comfortably give up €300 a month from your take-home pay. You have two options:

• Put it in a regular savings or investment account: you invest €300 a month from your take-home pay, growing at an assumed average annual return of 5%.
• Put it into an AVC instead: assuming the contribution qualifies for Income Tax relief at 40%, the same €300 net cost allows you to contribute €500 a month gross to your pension (€500 less 40% Income Tax relief = €300). Investment returns then accumulate tax-free within the pension fund.

For illustration, we will assume both investments achieve an average annual return of 5%, compounded daily, with contributions made monthly:

Method: 5% nominal annual return, compounded daily → effective monthly rate ≈0.4176%, applied to an ordinary annuity of monthly contributions.

After 20 years, the AVC fund would be approximately €205,830, compared with approximately €123,498 in the personal investment, a difference of around €82,300 in the accumulated fund values. The difference arises because the Income Tax relief allows €500 to be invested in the AVC for the same assumed €300 reduction in take-home pay.

In practice, an ordinary savings or investment account is also taxed along the way, depending on what it’s held in: a deposit account loses 33% DIRT annually on the interest earned; a pooled fund, ETF, or life-assurance investment policy falls under the exit tax regime — reduced from 41% to 38% with effect from 1 January 2026 — charged on actual encashment or via a “deemed disposal” every 8 years, not annually; and direct shares are subject to 33% CGT, but only when you actually sell, with no deemed disposal.

This comparison deliberately does not allow for tax on returns within the personal investment. Depending on how personal savings or investments are held, tax may be expected to reduce the return achieved outside a pension. Equally, the AVC figure represents the value of the pension fund before any tax that may arise when retirement benefits are taken. Actual investment returns will vary, and charges have not been included in this illustration. Unlike personally held savings and investments, investment returns within a pension fund accumulate tax-free while invested. Tax may arise when benefits are taken at retirement: under current rules, the first €200,000 of retirement lump sums received over your lifetime is tax-free, with the next €300,000 taxed at 20%. Any remaining benefits are taxed according to how they are taken, for example as pension income or withdrawals from an ARF.

Starting early: a 32-year-old with an executive pension

Consider someone aged 32, earning €50,000 a year and in an Executive Pension Scheme, with an employee contribution of 4% of salary and a matching 4% employer contribution. They are considering adding a further 10% of salary as an AVC.

Illustration assumes salary growth of 2% a year and investment growth of 5% a year to age 65. Actual investment returns and salary increases will vary. Charges and taxation of retirement benefits are not reflected.

By age 65:

• Without the AVC (8% total contributions): fund of approximately €420,160
• With the 10% AVC (18% total contributions): fund of approximately €945,360
• Additional fund attributable to the 10% AVC: approximately €525,200

The example illustrates the potential benefit of starting AVCs early. Contributions made in your 30s have much longer to benefit from investment growth and compounding than contributions made closer to retirement.

AVC contributions may also qualify for Income Tax relief, subject to Revenue limits and your individual tax circumstances. At age 32, personal pension contributions of up to 20% of relevant earnings can currently qualify for Income Tax relief. In this example, the individual’s personal contributions, comprising the 4% employee contribution and 10% AVC, amount to 14% of salary for this purpose. Employer contributions do not count towards the employee’s age-related percentage limit.

Examples for higher earners

The potential contribution amounts can be greater for higher earners and for people in older age brackets, as the percentage of earnings eligible for Income Tax relief increases with age, subject to Revenue limits and individual circumstances.

Example 1 — Maximising headroom near the earnings cap

A consultant or senior manager, age 50, earning €115,000 (the current earnings cap for pension tax relief purposes on personal contributions), can qualify for Income Tax relief on personal pension contributions of up to 30% of earnings, or €34,500 a year. If their personal contribution to their scheme is 10% of salary (€11,500), they could have scope for a further €23,000 a year in AVCs to qualify for Income Tax relief. If that full €23,000 contribution qualifies for Income Tax relief at 40%, its net cost would be €13,800.

Growing at 5% annually over 10 years to retirement at 60:

• Gross pot after 10 years: €297,750
• Total net cost over those 10 years: €138,000

Example 2 — Using unused contribution headroom

A 58-year-old identifies that they have unused pension contribution headroom for the previous tax year and decides to make a once-off AVC of €30,000. Provided the contribution is made within the required timeframe and satisfies the relevant conditions, they may be able to elect to claim the Income Tax relief against the previous tax year. If that full €30,000 contribution qualifies for Income Tax relief at 40%, its net cost would be €18,000. Assuming investment growth of 5% a year, the €30,000 contribution could grow further over the period to retirement, for example to just over €38,000 after 5 years.

Making the most of your options

AVCs can be a valuable way to increase retirement savings, particularly where you have scope within the Revenue contribution limits and can afford to set additional money aside for the longer term.

The amount that is appropriate will depend on your age, earnings, existing pension contributions, tax position and wider financial circumstances. For some people, regular AVCs may be suitable; for others, a once-off contribution may be worth considering.

The starting point is to establish how much scope you have for additional contributions, the Income Tax relief potentially available, and how an AVC fits within your overall retirement plan.

This article is for general information only and does not constitute financial or tax advice. Figures are illustrative, based on assumed contribution and growth rates, and are not a reliable guide to future performance. Tax treatment depends on individual circumstances and current Revenue rules, which may change. Speak with a financial advisor or your pension provider before making contribution decisions.

The post AVCs For Irish Savers appeared first on MWM.

For company directors, financial planning extends beyond managing the day-to-day operation of a business. The way profits are extracted from a company can have a significant impact on both current taxation and long-term personal wealth.

Pension funding can form an important part of this strategy. Where the relevant conditions are satisfied, employer pension contributions can allow a company to fund retirement benefits for a director while potentially obtaining corporation tax relief and avoiding the income tax, USC and PRSI treatment that would generally apply to additional salary or bonus income.

However, pension funding is subject to a number of rules and limits. The appropriate strategy will depend on the director’s remuneration, age, existing pension arrangements, company circumstances and retirement objectives.

Why Company Directors Should Consider Pension Funding

Company directors generally have several ways of extracting value from their company, including salary, bonuses, dividends and pension contributions.

A pension contribution can be particularly attractive because the company may be able to obtain a tax deduction for qualifying employer contributions, while the contribution can be invested within a pension structure for the director’s long-term benefit.

Pension funding should therefore be considered as part of an overall remuneration and retirement strategy rather than viewed simply as an alternative to salary or dividends.

Potential Corporation Tax Benefits

Qualifying employer pension contributions can be deductible in calculating a company’s taxable profits, subject to the applicable tax and pension rules.

For example, employer contributions to an employee’s PRSA are subject to an employer limit. From 1 January 2025, the employer limit for PRSA contributions is generally 100% of the employee’s relevant emoluments. Any PRSA contribution above the applicable employer limit can give rise to a Benefit-in-Kind charge for the employee and will not qualify for a corporation tax deduction to the same extent.

The corporation tax treatment should therefore be considered before making significant pension contributions, particularly where contributions are large relative to the director’s remuneration.

Employer Pension Contributions and Benefit-in-Kind

Employer contributions to an approved occupational pension scheme and PRSA are generally not treated as a Benefit-in-Kind, subject to the applicable rules.

As noted above regarding PRSAs, the position changed from 1 January 2025. The employer contribution exemption is subject to an employer limit of 100% of the employee’s salary/emoluments. Contributions above the applicable limit can be treated as a taxable Benefit-in-Kind for the employee.

This makes it particularly important for directors to consider their remuneration and pension contributions together.

PAYE, PRSI and USC

Qualifying employer contributions to an occupational pension scheme, PRSA are generally not subject to PAYE or employee PRSI through payroll. Employer contributions to PRSAs are also not subject to USC, subject to the relevant rules and limits.

This can make employer pension funding an efficient way of directing company resources towards long-term retirement provision.

It is important, however, to distinguish employer contributions from personal pension contributions. Personal contributions have their own tax-relief rules and limits.

Pension Structures Available to Company Directors

The most appropriate pension structure will depend on the director’s circumstances and the benefits already available to them.

Personal Retirement Savings Accounts (PRSAs)

A PRSA is a personal pension product that can be funded by both an individual and their employer. One of its advantages is portability: the PRSA is not tied to a particular employment and can generally continue if the individual changes employment

Since 1 January 2025, employer contributions to a PRSA are subject to an employer limit of 100% of the employee’s salary/emoluments. Contributions above the applicable limit can result in a Benefit-in-Kind charge and may not qualify for a corporation tax deduction.

PRSAs can therefore provide a flexible pension solution for directors, but contribution levels should be considered carefully in light of the applicable limits and the director’s wider pension position.

Occupational Pension Schemes and Master Trusts

Occupational pension schemes are established by employers to provide retirement and other benefits to employees. They must satisfy specific legislative and Revenue requirements.

The rules governing retirement benefits and contributions can differ depending on the type of scheme and the member’s circumstances. Factors such as salary, length of service, existing pension benefits and the scheme rules can be relevant when determining the benefits that may ultimately be provided.

For directors considering substantial pension funding, a detailed review of the proposed scheme and the director’s existing pension arrangements is therefore important before contributions are made.

The Importance of Remuneration Planning

Remuneration planning is an important part of pension planning for company directors.

Personal pension tax relief is linked to relevant earnings and is subject to age-related percentage limits and an annual earnings ceiling. For 2026, the age-related limits range from 15% of earnings for those under 30 to 40% for those aged 60 or over, with a maximum of €115,000 of earnings taken into account for this purpose.

Employer contributions are treated differently from personal contributions. Revenue confirms that employer contributions are not taken into account when determining the employee’s €115,000 earnings threshold for personal tax-relief purposes.

For company directors, this distinction can be important when deciding how salary, personal pension contributions and employer pension contributions should be structured.

Personal Pension Contributions

Directors may also make personal contributions to an eligible pension arrangement.

Tax relief on personal contributions is subject to Revenue limits. For 2026, the age-related limits are:

• Under age 30: 15%
• Age 30–39: 20%
• Age 40–49: 25%
• Age 50–54: 30%
• Age 55–59: 35%
• Age 60 or over: 40%

The maximum earnings taken into account for calculating relief is €115,000 per year. Tax relief is generally available at the individual’s marginal rate, subject to the applicable rules.

Personal contributions and employer contributions should therefore be considered separately when assessing the maximum available tax relief.

Tax-Efficient Pension Investment

A pension is not only a retirement savings vehicle; it can also provide significant tax advantages while funds remain invested.

For example, Revenue confirms that income arising from investments within a PRSA is exempt from tax, while qualifying pension investments can benefit from favourable tax treatment compared with holding investments personally.

This can allow more of the investment return to remain within the pension and potentially benefit from long-term compounding.

The exact tax treatment will depend on the pension arrangement and investments held.

Standard Fund Threshold

Directors considering substantial pension contributions should also be aware of the Standard Fund Threshold (SFT).

The SFT places a limit on the amount of pension benefits that can generally be accumulated with tax-advantaged treatment. The threshold is being increased in stages following changes introduced by Finance Act 2024.

For 2026, the SFT is €2.2 million. It increases to €2.4 million in 2027, €2.6 million in 2028 and €2.8 million in 2029.

Where an individual’s pension benefits exceed the applicable threshold, chargeable excess tax can arise. The SFT should therefore be taken into account when planning significant pension contributions, particularly for directors who already have substantial pension assets or defined-benefit entitlements.

Accessing Pension Benefits

The age at which pension benefits can be accessed depends on the type of pension arrangement and the individual’s circumstances.

For a PRSA, benefits can generally be taken from age 60. Certain occupational pension schemes may allow early retirement between ages 50 and 60, provided the scheme rules permit it and the relevant conditions are satisfied.

Different rules can apply in circumstances such as ill-health or where particular occupational arrangements are involved.

It is therefore important not to assume that every pension arrangement can be accessed from age 50.

Retirement Lump Sum

Retirement lump-sum treatment also depends on the type of pension arrangement.

For a personal pension, including a PRSA, an individual can generally take up to 25% of the fund as a retirement lump sum when benefits are first taken, subject to the applicable rules and the overall lifetime limits.

The lifetime tax-free limit for retirement lump sums from all sources is currently €200,000. Amounts above €200,000 are subject to the applicable excess lump-sum tax rules. The portion between €200,001 and €500,000 is currently taxed at 20%, while amounts above €500,000 are taxed at the higher rate of 40%.

Occupational pension schemes can operate under different lump-sum rules, with benefits potentially determined by factors such as salary and service

Retirement Income Options

Once pension benefits become available, there are several possible ways of using the retirement fund, depending on the pension arrangement and the individual’s circumstances.

Options can include:

• Purchasing an annuity.
• Transferring or using funds in an Approved Retirement Fund (ARF), where the relevant conditions are met.
• Retaining funds in a vested PRSA, where permitted.
• Taking taxable pension benefits.
• Combining different retirement-income approaches.

The appropriate option will depend on factors such as required retirement income, investment risk, life expectancy, tax position and estate-planning objectives.

Why Professional Advice Matters

Pension planning for company directors can involve several interacting areas of tax and pension legislation.

Important considerations can include:

• Company profitability and cash flow.
• Director remuneration.
• Age and intended retirement date.
• Existing pension arrangements.
• Personal pension contributions.
• Employer contribution limits.
• The Standard Fund Threshold.
• Desired retirement income.
• Investment objectives and attitude to risk.
• Estate-planning considerations.

A pension contribution that is appropriate for one director may not be appropriate for another. In particular, large contributions should be considered in the context of the director’s existing pension assets and the applicable limits.

Building a Long-Term Strategy

When structured appropriately, pension funding can form an important part of a company director’s overall financial strategy.

Potential advantages can include:

• Potential corporation tax relief for qualifying employer contributions.
• Efficient funding of long-term retirement benefits.
• Favourable tax treatment of qualifying employer pension contributions.
• Tax-efficient investment within an approved pension arrangement.
• Access to retirement lump-sum benefits, subject to the applicable rules and limits.
• A structured approach to converting company resources into long-term retirement provision.

However, pension planning should not be viewed as a one-size-fits-all tax strategy. The most suitable approach will depend on the company’s circumstances and the director’s personal and pension position.

Speak to MyWealthManagement

At MyWealthManagement, we work with company directors to help integrate pension planning with their wider financial and business objectives.

Whether you are considering employer pension contributions, reviewing an existing pension arrangement, planning for retirement or assessing how much you can contribute within the applicable tax and pension limits, professional advice can help you understand the options available.

Our advisers can review your circumstances and help develop a pension strategy designed around your remuneration, existing pension arrangements, retirement objectives and long-term financial goals.

If you would like to discuss pension planning as a company director, contact MyWealthManagement to arrange a personalised consultation.

This guide is for general information only and does not constitute financial, investment or tax advice. Pension and tax rules can change and the availability of tax relief depends on individual circumstances. The value of investments can fall as well as rise, and past performance is not a reliable guide to future performance. Appropriate professional advice should be obtained before making pension or investment decisions.

The post Company Director Pensions appeared first on MWM.

Why pension planning matters

When you are self-employed, there is usually no employer pension contribution happening in the background. That makes it important to build retirement planning into your wider financial plan rather than leaving it until the business is established or retirement feels closer.

Your business may become a valuable asset, but relying entirely on its future sale to fund retirement can create uncertainty. Building a separate pension gives you another source of long-term wealth and greater flexibility when the time comes to step back from work.

Your main pension options

Two common options for sole traders are a Personal Retirement Savings Account (PRSA) and a Personal Pension / Retirement Annuity Contract (RAC).

A PRSA can be particularly useful where income changes from year to year, as contributions can generally be adjusted and additional lump sums can be made. A Personal Pension/RAC is another established option for individuals with relevant earnings from self-employment.

The right structure depends on your age, income, existing pensions, investment preferences and retirement plans. The focus should be on finding an arrangement that fits your circumstances rather than simply choosing a pension product.

Tax relief can make a significant difference

Qualifying personal pension contributions can receive Income Tax relief, subject to Revenue rules. The maximum contribution that can qualify is linked to your age and relevant earnings.

Age / Maximum % of earnings

Under 30: 15%
30–39: 20%
40–49: 25%
50–54: 30%
55–59: 35%
60+: 40%

For tax-relief purposes, the earnings taken into account are currently capped at €115,000 per year. Your available allowance can also be affected by other pension contributions, so the figures should be checked before making a significant payment.

A strong year? Consider a lump-sum contribution

One of the advantages of pension planning for a sole trader is flexibility. If profits are stronger than expected, you do not necessarily need to permanently increase your monthly contribution. A once-off lump-sum contribution may allow you to direct some of that year’s surplus income towards retirement.

Regular contributions can build the habit. Lump sums can help you make the most of stronger trading years.

Don’t miss the tax-return opportunity

The annual Pay & File period is an important time to review your pension. Subject to the applicable rules and limits, certain qualifying contributions made after the end of a tax year but before the following filing deadline can be elected for relief in the earlier tax year.

This can be useful because your accounts may be substantially complete by then, giving you a clearer view of your taxable income and available pension contribution capacity. It is important to plan ahead, as contributions need to be processed and the relevant election made within the required timeframe.

For the 2025 Income Tax Return, Revenue’s standard Pay & File deadline is 31 October 2026. For qualifying customers who both file and pay through ROS, the 2026 deadline is extended to 18 November 2026.

Already have pensions? Review them first

Many sole traders previously worked as employees and may already have an occupational pension, PRSA, AVC or another pension arrangement. Before simply starting another plan, it makes sense to understand what you already have.

• Current fund values and existing contributions
• Investment strategy and level of risk
• Charges and allocation terms
• Retirement options and expected retirement age
• Whether each arrangement still fits your overall plan

The aim is not automatically to move an old pension. It is to make sure your existing arrangements and any new contributions work together as part of one retirement strategy.

How much should you contribute?

There is no single contribution level that suits every sole trader. Someone in their 30s with decades until retirement will have a different starting point from someone in their 50s who is beginning later or wants to retire sooner.

A better question is: what level of retirement income are you trying to build? From there, your current pension value, timeframe, contribution capacity and other assets can be considered together.

Contributions are only part of the picture

Your pension is invested, so fund choice, risk and charges matter. Over a long timeframe, the investment strategy and the costs attached to the pension can materially affect the outcome.

A good pension review should therefore look at both how much you are contributing and how the money is being invested.

Make it an annual financial-planning habit

For many sole traders, the most practical approach is a combination of regular contributions and additional lump sums when cash flow allows. Reviewing your pension alongside your annual accounts can help keep the plan aligned with your income, tax position and retirement objectives.

Your pension should grow with your business – not be something you only think about when retirement gets close.

Ready to review your pension?

Whether you are starting your first pension, reviewing an existing arrangement or considering a lump-sum contribution before the tax deadline, a financial review can help establish how much you can contribute, what tax relief may be available and whether your current strategy remains appropriate.

Speak with us about your portfolio

This guide is for general information only and does not constitute financial, investment or tax advice. Pension and tax rules can change and the availability of tax relief depends on individual circumstances. The value of investments can fall as well as rise, and past performance is not a reliable guide to future performance. Appropriate professional advice should be obtained before making pension or investment decisions.

The post Pension Planning for Sole Traders in Ireland appeared first on MWM.

L-R Abi Sheahan, Joey Sheahan, Alexis O’Byrne, Brendan Barry, Siobhan Aherne, John O’Byrne, Nicola Ryan, Maurice O’Brien and Pamela Phelan

Cork, IRELAND 2nd June, 2026: MyWealthManagement (MWM) Group, one of Ireland’s fastest-growing wealth management and mortgage brokerage firms, has announced the acquisition of Waterford-based Adelphi Financial Brokers (AFB), marking the fifth acquisition completed by the group since launching its growth strategy in June 2025.

Adelphi Financial Brokers provides financial planning advice to high net worth individuals, corporates and families and has built up a client base of approximately 2,000 clients. The business employs six people, bringing MWM Group’s total workforce to 44 employees nationwide.

The acquisition follows MWM Group’s recent acquisition of Inspire Financial’s book of business in December 2025 and its merger with Financial Innovations in March 2026. The transactions form part of the group’s wider expansion strategy following a €10 million investment announced in June 2025 alongside the acquisition of Axiom Private Clients Limited.

MWM Group is on track to oversee €750 million in assets under advice (AUA) by the end of Q2 2026, with a strong acquisition pipeline targeting €1.5 billion in AUA by year-end. Longer term, the business is targeting a workforce of 300 employees nationwide by 2030, primarily through strategic mergers and acquisitions.

Commenting on the latest acquisition, Joey Sheahan, Head of Acquisitions at MyWealthManagement Group, “Adelphi Financial Brokers is a highly respected business with a strong reputation for delivering high-quality financial advice and long-standing client relationships. John and his team have built an excellent business and we are delighted to welcome them to MWM Group as they continue to lead the business in Waterford and across the South East”.

“This acquisition represents another important step in our growth strategy as we continue to expand our presence across Ireland. We see significant opportunities to partner with advisory firms that share our long-term approach to client service and financial planning”.

John O’Byrne, one of the founding Directors of Adelphi Financial Brokers, commented, “This is an exciting new chapter for Adelphi Financial Brokers and our clients. What stood out from our discussions with MWM Group was the strong cultural fit and shared focus on long-term client relationships and quality advice”.

“Joining the group will allow us to continue delivering a personal service to clients locally, while also benefiting from the additional scale, resources and expertise that come with being part of a larger organisation”.

Ends

The post MyWealthManagement Group Announces Fifth Acquisition with Deal for Waterford-Based Adelphi Financial Brokers appeared first on MWM.

RF

Ryan Flanagan

Wealth Advisor  ·  May 2026

Investment Strategy

Why Diversification Matters: Reducing Concentration Risk and Building Long-Term Financial Security

Many professionals accumulate significant wealth through employer share schemes and without realising it, a growing proportion of their financial future becomes tied to a single company. That is a risk worth taking seriously.

Equity awards, stock options, and bonus shares are genuinely powerful tools for wealth creation. But they can also create what we call concentration risk where a disproportionate share of your net worth depends on the fortunes of one organisation. These incentives are sometimes described as golden handcuffs: compelling enough to encourage long tenure, yet quietly increasing your financial dependence on a single corporate outcome.

This article explores how that risk accumulates, why diversification is a cornerstone of sound long-term investing, and the practical steps you can take to build a more resilient portfolio.

The hidden risk of concentration

Holding a large position in a single stock, particularly your employer’s, introduces company-specific risk. Unlike a diversified portfolio, where exposure is spread across many holdings, a concentrated position leaves your wealth highly sensitive to events in one organisation.

Concentrated portfolio risks

Earnings disappointments or profit warnings

Regulatory or policy changes

Sector-wide downturns or disruption

Leadership changes or strategic missteps

Competitive or technological shifts

Diversified portfolio benefits

Risk spread across multiple companies

Exposure across industry sectors

Geographic balance built in

Mix of equities, bonds and alternatives

Smoother returns over time

How concentration builds, often without realising

Concentration risk rarely stems from a single deliberate decision. More often it accumulates gradually through years of participation in employer equity schemes. Annual bonus shares vest and are retained, stock options are exercised, restricted stock units accumulate. Each allocation, viewed in isolation, appears manageable. Over a decade, the picture changes considerably.

Typical exposure range

€100k to €500k

Single stock concentration through equity awards

The core challenge

Dual risk

Both income and wealth tied to one employer

The solution

Phased plan

Structured, gradual rebalancing over time

Most investors would not choose to place €100,000 to €500,000 into a single stock. Yet through the natural progression of equity compensation, many professionals find themselves at exactly that level of exposure with a substantial portion of their wealth dependent on one company’s performance.

The dual risk: income and wealth in the same place

For many professionals, the greater concern is not just portfolio concentration. It is the overlap between employment income and investment exposure. Your salary, bonus, and career trajectory are already tied to your employer. If a significant portion of your investment wealth is also held in that same company, you carry a dual exposure that can compound quickly during periods of difficulty.

A company downturn could affect both your earnings and your investment value simultaneously, precisely when financial resilience matters most. Diversification addresses this directly by reducing reliance on any one corporate outcome across both streams of your financial life.

The case for diversification

Diversification is not about losing confidence in your employer or walking away from growth potential. It is about ensuring your financial future is not dependent on a single outcome, however strong that company may appear today.

• ✓Reduced portfolio volatility over market cycles
• ✓Improved risk-adjusted returns over the long term
• ✓Greater resilience to company and sector specific shocks
• ✓More consistent progress toward long-term financial goals

Spreading exposure across multiple companies, industry sectors, geographic regions, and asset classes including equities, bonds, and alternatives helps smooth returns and reduces the impact of any one underperforming position.

Current market context: a moment worth considering

Equity markets have seen strong performance in recent periods, with many technology and growth-oriented stocks trading near elevated levels relative to historical averages. Periods of strong performance are often a good time to step back and review existing exposures, not in reaction to fear, but as part of sound portfolio governance.

Rebalancing does not need to happen all at once. A phased approach can help manage timing risk while steadily reducing concentration, giving you control over the process without needing to call the market perfectly.

Taking a practical approach

Reducing concentration is not about abandoning what has served you well. It is about strengthening financial resilience going forward. Practical steps typically include:

1. 1Gradually selling vested shares over a structured timeframe
2. 2Reinvesting proceeds into diversified investment portfolios
3. 3Aligning investments with clearly defined long-term financial objectives
4. 4Implementing a disciplined rebalancing plan with defined review points

This approach allows you to reduce risk in a measured way, while still maintaining exposure to future growth potential where appropriate.

If you have accumulated a meaningful position in employer shares, it may be worth reviewing whether your current level of exposure remains aligned with your broader financial goals and risk tolerance. We would welcome the conversation.

Speak with us about your portfolio

Ryan Flanagan

BA · QFA · Wealth Advisor

Ryan is a qualified financial advisor at MyWealthManagement, specialising in long-term wealth planning, investment strategy, and helping professionals navigate equity compensation and concentration risk.

Connect with Ryan on LinkedIn

MyWealthManagement.ie  ·  May 2026
Investment Strategy

The post Why Diversification Matters appeared first on MWM.

Pic. L to R: Joe Cremin, Lilian O’Sullivan Greene, Stephen O’Driscoll, Máiread Casey, Mark Ryan, Virginia Barrett, Evan Barrett, Marie O’Flynn, Joey Sheahan, Sandra Maher and John Barrett

Cork, Ireland 8th April, 2026 MyWealthManagement (MWM) Group, one of Ireland’s fastest-growing wealth management and mortgage brokerage firms has announced expansion plans.

This follows the group’s recent acquisition of Inspire Financial’s book of business in December 2025 followed by a merger with Financial Innovations in March, marking the successful completion of four deals to date with further planned acquisitions in the pipeline. The amalgamations are part of the MWM Group’s ongoing growth strategy since an investment of €10 million was allocated in June 2025 with the announcement of the acquisition of Axiom Private Clients Limited.

The Group specialise in personalised financial planning and wealth management for high net worth individuals and families looking to secure and grow wealth.

The MWM Group, chaired by non-executive Director John Higgins, a former EY regional Managing Partner, is on track to have €750 million in client assets under advice (AUA) by the end of Q2 2026, with a further deal pipeline targeting AUA of €1.5 billion by year end.

In mid recruitment drive currently, the Group has successfully expanded its professional team to 28 QFAs (Qualified Financial Advisors) including 4 CFPs (Certified Financial Planners). Its Pensions & Post-Retirement division is led by former Mercer Head of Wealth Mark Ryan and Siobhán Aherne, formerly of RBC Brewin Dolphin was recently appointed Head of Operations. The group is targeting a workforce of 300 employees across the country by 2030, primarily through strategic mergers and acquisitions.

Commenting on the group’s recent acquisitions and ongoing recruitment and expansion plans, Joey Sheahan, Head of Acquisitions at MyWealthManagement Group said: “I am delighted to welcome such dynamic businesses and financial advisory specialists to the MWM team. This expansion reflects the strength of our team and our ability to grow while maintaining the trusted, long-term relationships at the heart of our business. In an evolving global market, we remain committed to managing our clients’ assets with discipline and delivering consistent, long-term value.”

Commenting on its merger with MWM Group, John Barrett, Director, Financial Innovations, said: “Joining the MWM Group is a unique opportunity for myself and the Financial Innovations team to work within a larger group in a high-performance environment that values customer care and prioritises a return on investment interests. Our decision to join the MWM Group allows us to continue to leverage our knowledge and experience in delivering for our clients, while tapping into the extensive resources, systems and streamlined compliance tools at our fingertips. It’s a perfect fit.”

John Barrett retains his title as Director within MWM with team members moving to Senior Advisory roles across the group.

Sandra Maher, Managing Director of Inspire Financial said: “The integration has been seamless, allowing for a smooth transition into the MWM business while maintaining strong continuity for my clients. The timing was right, and I look forward to continuing to support clients’ long-term financial goals with the added strength and resources of the MWM team.”

Ends

The post MyWealthManagement Welcomes Two Financial Services Companies to the Group appeared first on MWM.

‘Sources: Financial Times, Refinitiv, Wood MacKenzie, Verasight, ILIM, Bloomberg, S&P 500

Market Update Financial Planning | Investments | Pensions | Protection   Short Term Volatility Impacts:   Energy Shock and Market Repricing as Gulf Tensions Intensify   How have markets reacted?   Oil prices rose sharply again over last weekend, they are now up around 45% since the conflict began, with the price of Crude oil hitting $120 a barrel at one stage on Monday morning before falling back to $104 per barrel by lunchtime, nevertheless oil is now up 70% in 2026. Natural gas prices also jumped reflecting temporary shutdowns of energy production across the Gulf region highlighting the region’s importance to global energy markets. European gas prices are up 82% in March alone. Equity markets fell further on Monday morning with economies with a perceived reliance on oil from the Middle East hit hardest. By lunchtime on Monday European equities had fallen 8.4% in March, while Emerging, Japanese and UK have also fallen significantly over the same period. US equity market futures are also softer, falling 1% on Monday. With investors factoring in the possibility of prolonged higher energy prices, markets are now concerned about the longer-term impact on inflation and growth. With the possibility of higher inflation, interest rate expectations have risen with markets now pricing in rate rises in 2026 in both the UK and Europe, this has led government bond yields to rise across many countries.   MyWealthManagement’s current view:   The abrupt escalation has substantially increased uncertainty. If the war ends very soon, the impact on global growth and inflation should be minimal and asset prices may quickly revert toward pre-war levels. If it persists modestly longer, the effects are likely to be a moderate drag on growth this year and a modest, temporary uplift in inflation. In this scenario, risk-asset weakness should prove temporary and central banks would likely look through the supply-side shock, albeit with some delay in their policy paths. However, if the conflict becomes a multi-month event, the growth impact would be more significant (global growth potentially reduced by ~0.5 per cent) and the inflation shock larger and more persistent. This would be the most adverse outcome for risk assets, with prolonged uncertainty and weakening growth expectations. Should inflation expectations become de-anchored, central banks such as the European Central Bank and the Bank of England might be forced to hike further, though any subsequent recession would likely push them toward easing later.   Scores on the doors in the past week   The S&P 500 closed down -2.02% The NASDAQ 100 shed -1.24% The STOXX 600 in Europe sold off -5.55%   I suspect that many investors would be surprised to know that despite the headlines of the last week, the actual 12-month numbers are:   The S&P 500 is up 16.81% The NASDAQ is up 23.03% The STOXX 600 is up 8.19%   Asian markets who are also heavily dependent on energy imports weren’t spared with EM equity indices closing lower across the board.   In the US, energy prices also weighed on sentiment but, given its position as a net energy exporter, US equity markets were shielded from the worst of the price action.   Manufacturing and Services PMIs (Purchasing Managers’ Index) came in positive, but both surveys continued to reflect building inflationary pressures. On Friday, the non-farm payrolls report showed that the US had shed 92,000 jobs while unemployment overall rose to 4.4%.   The potential for energy-driven inflation weighed on bond prices on both sides of the Atlantic – investors are now pricing in a 50% probability that the ECB will raise interest rates while in the US, the Fed has a headache – caught between inflationary pressures on one hand and a weakening jobs market on the other. Middle East 2026 v Russia and Ukraine in 2022 But perspective is important – zoom out and we’re still a long way short of 2022 … ­ ­ ­ ­ ­ ­ ­ ­ Asian Countries likely to be impacted more initially Here’s the latest on home heating oil in Ireland The vast majority of Iranian missiles & drones are being intercepted, but it comes at a cost. Stockpiles are dwindling and latest estimates put the cost of the war at $900m PER DAY for the US alone. The first 100 hours of the conflict cost a reported $3.7bn of which $3.1bn was spent on munitions.   Voters think that Trump is focused on the wrong things.   Does any of the above really matter in the long run?   Not according to history. The past is littered with geopolitical and economic events and while many of them matter in the short term, the fact that markets and economies ultimately march onwards and upwards is proof that all events are eventually consigned to history and people go back to doing what they have always done – innovate, solve problems and drive on the evolution of the global economy.   Future outcomes & events are nearly impossible to call. Let’s look back at the 2020’s so far, who would have predicted:   Oil prices turning negative. Supply chain shocks. The fastest stock market crash and recovery in history. The strongest US labour market in a generation. A war breaking out in Europe lasting 4 years and still running. 9% inflation that wouldn’t lead to a recession. AI saving the economy with the release of ChatGPT right as inflation was peaking. The Tariff Tantrum following Liberation Day.   Volatility is always uncomfortable, but it should never be unexpected.   Investors will naturally be worried about the implications of current events and the danger of making a snap decision increases with noise. With that in mind, this week, I thought it would be useful to leave you with some thoughts that should be considered before making any decisions in relation to portfolios & investment holdings:   Do you have confidence in predicting the outcome of the current situation? Can you reliably predict the implications for the markets? Are any of those implications likely to be material over your investment horizon? Is your investment portfolio diversified enough to cope with a range of possible outcomes? Have your investment objectives changed in any way?   Before considering a fundamental change, investors would be well served to consider the above questions and, in the absence of concrete answers, history suggests that sticking to the plan is usually the best course of action.

The post Market Volatility: Insights and Key Considerations appeared first on MWM.

Estimates from the Zurich Life Cost of Education Ireland Survey (2025) highlight just how significant third-level education costs can be — and how important it is to plan early.

What does education really cost?

Education costs in Ireland vary widely depending on:

• Location
• Length of study
• Whether a student lives at home or rents

Students living away from home face substantially higher costs, and the difference in costs if you have multiple children can be striking.

Example: Three children attending college while living at home

Based on current estimates, here’s what you would be expected to have saved for:

• Three children aged 11, 13, and 15
• Each completing a 4-year degree
• Starting college at age 19
• Living at home

Total estimated savings required: €83,086.64

A meaningful sum — but one that becomes far more manageable when broken into small, consistent contributions over time.

Now compare that to students living away from home

If those same three children were required to live in student accommodation, the estimated costs rise dramatically.

Based on the same Zurich Life survey assumptions, the estimated funds required would be:

• Dependent 1: €68,092.16
• Dependent 2: €65,448.06
• Dependent 3: €62,906.63

Total estimated savings required: €196,446.85

That’s well over double the cost of children living at home — and a powerful reminder of why early planning matters.

What Can you Do?

One of the simplest ways parents can start is by redirecting the €140 per month Child Benefit into a dedicated long-term education savings account.

This isn’t a new cost, it’s simply putting money you already receive to work more efficiently:

• Helping protect the real value of your savings over time
• Targeting returns above inflation, aiming for a real return
• Creating a consistent savings habit
• Potentially avoiding the need to borrow later in life

Rather than paying interest on education loans in the future, you give your savings the opportunity to earn interest today.

Small steps, taken early, make a big difference

Starting early is key. Even modest, regular contributions can build into a substantial fund over time, especially when invested appropriately for the long term.

That’s exactly what our Future Save Education Plan is designed to support.

How the Future Save Education Plan helps

The plan is designed for real life; flexible, accessible, and adaptable as circumstances change:

• ✅ Easy access savings
• ✅ Contributions can be increased, decreased, paused, or restarted at any time
• ✅ Penalty-free withdrawals
• ✅ Choice of risk level — take as much or as little risk as suits you
• ✅ Guidance to help you choose what’s appropriate for your current circumstances

Whether you’re just starting out or already saving, the plan meets you where you are.

One simple New Year fix

If you’re already saving your child benefit – great. If not, this could be one simple New Year change that makes your children’s education savings far more meaningful.

Redirecting the child benefit into a dedicated education savings plan:

• Builds consistency
• Supports better long-term outcomes
• Reduces reliance on future borrowing
• Keeps you in control

A small habit, maintained throughout the year, can make a lasting difference to your children’s future.

The best time to start was years ago. The next best time is now.

If you’d like to explore how this could work for your family, we’re here to help.

Kind Regards,

Stephen O’Driscoll – MSc AMP BA QFA

Director

0834407829

The post A New Year, a Simple Habit, a Powerful Future for Your Children 🎓 appeared first on MWM.

– Pensions Broker Expert 2025
– Investment Broker Expert 2025
– Protection Broker Expert 2025

These Awards shine a light on excellence through recognising Insurance, Financial and Mortgage Brokers who offer the highest level of professionalism, innovation, performance, and service to their clients. We are thrilled to reach the finalist stage and appreciate the great opportunity to showcase and acknowledge the work of our dedicated team of people.

Congratulations and good luck to all the finalists on the upcoming Awards night – November 27th 2025.

The post MyWealthManagement Makes Shortlist in Three Categories of Brokers Ireland – Broker Expert Awards 2025 appeared first on MWM.

Cork, Ireland  – 9th June, 2025 MyWealthManagement Group, one of Ireland’s fastest-growing independent wealth management and mortgage brokerage firms and part of MyCapital Investment Holdings Ltd., has unveiled expansion plans aimed at significantly increasing its workforce and scaling its operations over the next five years.

In an ambitious move that reflects the company’s growth trajectory, MyWealthManagement (MWM) announced plans to expand its team from its current 24 staff members to 80 by the end of 2025, primarily through strategic mergers and acquisitions. The company is targeting a workforce of 300 employees across the country by 2030, demonstrating its commitment to both national expansion and the continued growth of its services.

In recent months MWM Group has completed the acquisition of Axiom Private Clients Ltd., founded by Certified Financial Planner (CFP) Thomas Roche, the newly appointed MWM Director of Private Equity.

Mark Ryan, CFP and former Head of Wealth in Mercer has also taken up a senior leadership role within the MWM team together with Stephen O’Driscoll, formerly of Bank of Ireland and Joey Sheahan, founder of MyMortgages.ie and author of The Mortgage Coach. Former EY regional Managing Partner John Higgins is Chair and Independent Non-Executive Director of the Group.

Joey Sheahan, Head of Acquisitions at MyWealthManagement Group spoke of their plans,

“We are entering an exciting phase of our business, with a clear focus on recruiting top talent and acquiring strong brokerages to accelerate our growth. We are poised to expand significantly in the coming months and years, creating a multitude of opportunities in key areas of wealth management, financial planning, and mortgage brokerage.”

“Building a strong team is similar to building a strong sports team. We are bringing competent people with different skill sets into the company. Like a prop forward in rugby can push a scrum back and an out-half can kick the ball. Two very different skills which complement each other.”

Currently, the company operates from three offices in Dublin and Cork.

Mr. Sheahan continued,

“We have 4 further acquisitions we expect to complete in 2025, at which point we will have 80 staff, 6 offices in 4 counties, serving over 30,000 customers across Ireland.”

The recruitment drive aims to attract experienced professionals across these sectors, as well as brokerages seeking an exit strategy. The company has committed €10 million towards its 2025 acquisitions strategy having identified a growing need among long-established, traditional brokerages, many of which are struggling with the administrative, compliance, and marketing burdens of the business. By offering a unique opportunity to merge, the company is positioning itself as a solution for those looking to step back from day-to-day operations and focus on client-facing work/retirement.

Mark Ryan, Director of Post-Retirement explained,

“We understand that many brokers face increasing challenges in today’s evolving financial landscape, and we want to be a partner that makes their transition easier.”

In addition to the recruitment of financial professionals, MyWealthManagement has made several key appointments to its Board of Directors over the past few months, strengthening the company’s leadership and governance.

Stephen O’Driscoll, Director of Wealth went on to comment,

“We are confident that our leadership team, combined with our focus on scaling efficiently and effectively, will ensure that our business remains a safe and trusted provider of financial advice for new and existing clients.”

MyWealthManagement’s expansion is also supported by MyMortgages.ie, a leading mortgage brokerage in Ireland.

As part of its expansion plans, MWM Group is focusing on strengthening its presence in key areas such as:

• Retirement Planning
• Savings and Investments
• Tax and Estate Planning
• Protection Planning
• Mortgages
• Corporate Savings and Group Pension Schemes

The post MyWealthManagement Group Announces Recruitment Drive to Triple Workforce by the end of 2025 appeared first on MWM.