New Ireland Pension..worried

Gilally

:mad:Hi I am wondering if anyone can advise, my dad has been paying into a pension for years with New Ireland at the moment he has paid in just over 30,000. He is 62 and lost his job recently in construction. So my mum thought it might be an idea to get some money from this policy. They have been told the following.

That he may withdraw 8000 now.
That even when the policy matures at his age of 65 they will not be able to withdraw any money from the account unless he already has a pensionable income of 12500 per annum.

he will qualify for the non contributory pension at 65 but that will only give him an income of 11,000 per annum so he wont be able to withdraw money his alternative is to take monthly payments of 75 euro per month for his life time.

My mum has an income and she would take in 44,000 per year in her pension. Should this be jointly assessed as they are married? therefor my dad should qualify?

Is it right that New Ireland are doing this? Surely it seems wrong that he has paid in 32,000 and now cannot access this money?

Please advise i feel desperate for them

Gilally

Just bumping this up

stepbar

Google is your friend

http://www.pensionsboard.ie/en/Publications/Information_Booklets/

In short New Ireland are correct in what they are saying however I'm not 100% sure if income is jointly accessed. If your Da does not have a min of 12.7k of an annual income he must put the remainer of the fund in an Approved Minimum Retirement Fund (AMRF) and the capital cannot be touched until 75 (profits can be taken out) or buy an Annuity which gives an income for life.

Gilally

stepbar wrote: »

Google is your friend

http://www.pensionsboard.ie/en/Publications/Information_Booklets/

In short New Ireland are correct in what they are saying however I'm not 100% sure if income is jointly accessed. If your Da does not have a min of 12.7k of an annual income he must put the remainer of the fund in an Approved Minimum Retirement Fund (AMRF) and the capital cannot be touched until 75 (profits can be taken out) or buy an Annuity which gives an income for life.

Could you explain what you mean by buy an annuity?

Many thanks for the advice above

GeorgeH

Basically, a pension is not like a savings account, you can't just go and draw what you like when you like because you got tax relief incentives (from the taxman) to build up the pension fund. The rules on how you can draw a pension down are set by the Revenue Commissioners (the tax man) & the rules are not set by New Ireland. New Ireland will explain the rules to you and can only pay your dad out according to the rules. But - the rules are there to protect your dad.

Gilally

Thanks, ok so is there any other way I can get this fund to work better for him, He has been paying 350 euro a month into it for over 20 years it doesnt seem right that all he will get is 75 a month back and 8000?

casey junior

Gilally wrote: »

:mad:Hi I am wondering if anyone can advise, my dad has been paying into a pension for years with New Ireland at the moment he has paid in just over 30,000. He is 62 and lost his job recently in construction. So my mum thought it might be an idea to get some money from this policy. They have been told the following.

That he may withdraw 8000 now.
That even when the policy matures at his age of 65 they will not be able to withdraw any money from the account unless he already has a pensionable income of 12500 per annum.

he will qualify for the non contributory pension at 65 but that will only give him an income of 11,000 per annum so he wont be able to withdraw money his alternative is to take monthly payments of 75 euro per month for his life time.

My mum has an income and she would take in 44,000 per year in her pension. Should this be jointly assessed as they are married? therefor my dad should qualify?

Is it right that New Ireland are doing this? Surely it seems wrong that he has paid in 32,000 and now cannot access this money?

Please advise i feel desperate for them

Why do you feel desperate for them?, you say your mum has a pension of 44000 and your dad 11000, I think they are top of the world.
BTW the 320 pm for 20 years should be worth 84000 plus interest which should give a very good annuity.

Gilally

Dad isn't eligible for the 11000 until he is 65 he is 62 now so they just have my mums pension. I feel bad for them as regardless of their income now they paid into this, they banked on having it in their old age and now that doesn't seem the case.;)

Andymfinancial

if he takes an annuity (an income) make sure that he shops around. You can use the pension fund to buy an income from ANY insurer, it doesnt have to be from New Ireland. The amount of income can be significantly higher if you shop around. A good broker can do that for you

Gilally

Andymfinancial wrote: »

if he takes an annuity (an income) make sure that he shops around. You can use the pension fund to buy an income from ANY insurer, it doesnt have to be from New Ireland. The amount of income can be significantly higher if you shop around. A good broker can do that for you

Hi, thanks for the advice, can you advise me how he needs to go about this. We are really clueless! or could you suggest a broker?

Thanks again

nonashmot

Hi Gilally
Your situation is actually quite common in todays economy.If you rang NIA office in dawson street you would have got the standard reply to a question on pensions but most pensions are case specific and as the saying goes there are more ways to skin a cat. you mention that your father worked in construction ,does he have any retained benefits from CIF scheme. If you reply to this message I would gladly look into this further for you as I am a Financial Advisor and have dealt with simalar cases before.
nonashmot

Gilally

Thanks for your reply, I dont think my dad paid into any CIF scheme?