Blog #3 Why Filmmakers Need A Pension Too
This post is more on the business end here. I’m going to base this on Irish laws and regulations, this will be different to other countries in terms of taxes and what you need to declare.
As someone who is currently self-employed, I began this year to think about the future. I began to think about my financial future and protecting myself from inflation. Thus, I began to think about pensions. After doing some research, I found out that I need a private pension because I am self-employed. No-one is going to make you invest into a pension if you are self-employed but the earlier you start, the better (because it compounds every year). I’m going to share some tips I learned about pensions as someone who is a video freelancer and some things to think about when you are ready to make a decision.
When thinking about different assets to invest in, an important thing to remember is that a pension contribution is tax-deductible up to a maximum of 20%. If you earned €100,000 in 2025, you could pay €20,000 into a pension contribution and get the full amount (€20,000) as an reduction in your taxable income on your 2025 tax return. It pays for itself. Pretty neat. This is why pensions beat stocks, ETF’s and gold etc. for high earners.
Here’s the problem with ETF’s in Ireland. Every 8 years, you have to pay taxes on your ETF gains at 41% (even if you don’t sell). That is a lot of paperwork for an asset that you should be holding onto a lot longer (ideally 20 or 30+ years). A pension provider will do that job for you. You will still have to pay the 41% but at least it’s taken care of by your pension provider and you won’t get fined if you do a bad job on your yearly returns. Also, tip number 1 applies here.
Saving for the future
3. When to pay: Pensions are usually paid around year end (October/November). This is because people have a good idea of how much money they will have made that year by this point. This practise is the best way to be tax-efficient and ensure you’re getting the most tax credits you can. I called Zurich pensions this year in April and the guy I spoke to on the phone didn’t want my money! He told me to wait until October and give him a call then about setting up a pension. Also, fair warning, you can’t just log online and create an account there for a pension. You have to call and apply.
4. The second best time to start a pension is today. As a pension gains and reinvest dividends, the amount will snowball over time. This is why the best time to start is today. Remember too that investing over a longer period will protect from sudden downturns in the market, like we saw this year. If you invest over 20 or 30 years, this won’t have a big impact on your earnings.
5. Lastly, if you are not aware, you can take 25% out of your pension fund tax-free, when you retire. This is a pretty tax-efficient way to draw money out of your pension, letting you live off the earnings afterwards, which will also be tax-free if you don’t meet the threshold for income tax.
Those are the things that I learned about pensions. Rather than investing in volatile stocks or ETF’s that constantly need to be maintained, why not make your life simpler and invest in a pension, even if you will be paying fees to your provider. It’s the best way to protect against inflation.
-D.C.