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Cashign in pension?

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  • 01-06-2011 2:55pm
    #1
    southofnowhere
    Registered Users Posts: 258 ✭✭


    Hi all, looking for some help.

    Clueless on these matters, but considering a return to college to do a Masters.

    If I choose to do a one year course (full-time) I will most likely need to leave my bob, leave not being an option.

    So, my question is, if I do leave, can I can cash in my pension on leaving?

    What is the tax on that (I read in another thread about 21 per cent)? How long would it take?

    I've been paying in seven years and it's worth about €18,000 I think - exceptional, I know!

    It would be cashed in to pay for the course and sustain me for the year, would get a Credit Union loan, but I have a mortgage to pay too!

    Any advice appreciated.


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    #2
    HowFinancial
    Registered Users Posts: 71 ✭✭HowFinancial


    After paying into pension for 7 years you cannot just cash in your pension. Sorry if I'm bearer of bad news. Hopefully you can explore other options for funding your masters. However, if you are at or near retirement age you should contact your pension administrator as they will have all your details.

    You might also consider a retirement bond for your dormant/deferred pension. There can be a number of reasons for doing this, but first get a few independent reviews looking into your specific details, and if your pension is 'defined benefit' instead of 'defined contribution' you should be very wary of making any changes to it without knowing all the facts and in particular if there are any additional investment risks due to switching.

    You also mentioned you have a mortgage. You should definitely get your mortgage cover reviewed as very often there is circa 20 - 30% saving to be achieved on the mortgage cover premiums. This should be some good news anyhow.

    If you're a member of a credit union great port of call for a loan.

    All the best with your masters.


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