Previous Defined Contribution Pension Options

Previous Defined Contribution Pension Options

Options available to an ex-employee pension fund:

If you have a pension with a previous employer that offered a defined contribution pension to its employees, then you have the following options available to you;

Option 1 :

Leave their pension invested in their previous employer’s scheme and retire it under their pension scheme rules.

  • Access to this pension is limited to the normal retirement age of the scheme (usually 65).
  • There is limited control and choice in where the pension funds are invested.
  • In the event of death, it can be difficult for the family of the pension owner to locate/access to a previous employment pension, particularly if the death is sudden.

Option 2 :

Transfer their pension to their new occupational scheme with their new employer.

  • Retirement age is restricted here also, in line with new scheme rules (65 – 68).
  • There is limited control and choice on where the funds are invested.
  • The Death Benefit has usually correlated with the salary the employee is on (e.g., a death benefit if twice salary, etc if an employee dies in service).

Option 3 :

Transfer the full Pension Value to Personal Retirement Bond in their own name.

  • They will have the option of accessing your pension from age 50 onwards if you wish.
  • They will have full control over the investment options
  • Access to these pension funds can be gained from age 50 onwards.
  • In the event of death, full fund values of the Pension Bond are payable to the individual’s family/estate.

Option 4 :

Transfer your pension funds to Personal Retirement Savings Account (PRSA).

  • Access is restricted to age 60 onwards.
  • They have full control over their investment options
  • In the event of death, full fund values of the PRSA are payable to the individual’s family/estate.

Whichever pension option is chosen to access/draw down the pension, the same rules usually apply e.g., 25% as a Tax-Free Lump Sum and the balance (75%) invested in an Approved Retirement Fund (ARF) which is taxable as income once withdrawn.

Options available to an ex-employee pension fund:

If you have a pension with a previous employer that offered a defined contribution pension to its employees, then you have the following options available to you;

Option 1 – Leave their pension invested in their previous employer’s scheme and retire it under their pension scheme rules.

  • Access to this pension is limited to the normal retirement age of the scheme (usually 65).
  • There is limited control and choice in where the pension funds are invested.
  • In the event of death, it can be difficult for the family of the pension owner to locate/access to a previous employment pension, particularly if the death is sudden.

Option 2 – Transfer their pension to their new occupational scheme with their new employer.

  • Retirement age is restricted here also, in line with new scheme rules (65 – 68).
  • There is limited control and choice on where the funds are invested.
  • The Death Benefit has usually correlated with the salary the employee is on (e.g., a death benefit if twice salary, etc if an employee dies in service).

Option 3 – Transfer the full Pension Value to Personal Retirement Bond in their own name.

  • They will have the option of accessing your pension from age 50 onwards if you wish.
  • They will have full control over the investment options
  • Access to these pension funds can be gained from age 50 onwards.
  • In the event of death, full fund values of the Pension Bond are payable to the individual’s family/estate.

Option 4 – Transfer your pension funds to Personal Retirement Savings Account (PRSA).

  • Access is restricted to age 60 onwards.
  • They have full control over their investment options
  • In the event of death, full fund values of the PRSA are payable to the individual’s family/estate.

Whichever pension option is chosen to access/draw down the pension, the same rules usually apply e.g., 25% as a Tax-Free Lump Sum and the balance (75%) invested in an Approved Retirement Fund (ARF) which is taxable as income once withdrawn.

Would you like to enquire about your Previous Pension?

Would you like to enquire about your Previous Pension?

If you would like to find out more information on the pension services that we offer and get a quotation, please contact us on:

If you would like to find out more information on the pension services that we offer and get a quotation, please contact us on:

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© 2020 Money Maximiser | Money Maximising Advisors Limited is regulated by the Central Bank of Ireland - C154250 | Privacy Policy

Other Products You Might Be Interested in

Pensions

A pension is a long-term savings plan for your retirement. Unlike a regular savings account, money invested in your pension can earn important tax breaks. When you retire, and look to access to your fund, the benefits can be drawn down in a tax efficient way. The earlier you start your pension, the cheaper it is for you to provide the income you want in retirement.

Public Sector AVCs

We offer AVC Advice for Teachers, Nurses, Doctors, Gardaí, etc, and any other public sector profession. The main reasons civil servants should pay into an AVC is to fund for the maximum tax free lump sum available.

Overseas Pension Transfers Advice

Many Irish residents that worked for over a 5 year period in a foreign country in a full time position leave behind a size-able pension in that country. Legislation changes over the past few years have meant that a large number of these pensions can now be transferred with their owners in one lump sum once they leave this employment.

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Superannuation is the name given to the benefits and entitlements that public sector workers are entitled to.

If you are a public-sector worker, for example a nurse or doctor, teacher or lecturer, a guard or an army officer etc, then you need specialised financial advice as your benefits and entitlements are both complex and unique to other sectors. Our team has vast expertise in the public sector.

Redundancy Advice

If you have recently been offered a redundancy package from your employer and are considering taking it, it is very important for you to educate yourself and understand all of the options available to you in relation to how you accept this redundancy package.

Money Maximising Advisors Limited

© 2020 Money Maximiser | Money Maximising Advisors Limited is regulated by the Central Bank of Ireland - C154250 | Privacy Policy