pension release

missbutler

anyone know how to release a pension fund before retirement age

Liam D Ferguson

What type of pension - Occupational Pension Sscheme, Buy-Out Bond, Personal Pension, PRSA? There are different rules for each.

HowFinancial

Get your Leaving Service Options Statement, then go to a broker who deals with pensions. Drawing your retirement funds before normal retirement age, & the best way to do it for you will depend on so many variables.

E.G.
Are you over age 50? Do you have other income? Is it defined benefit or defined contribution pension plan? Once you've drawn your tax free lump sum what will you do with the balance (annuity/arf)?

Your question can only really be properly answered on a case by case basis to ensure your interests are best looked after. Recommend you go to a broker, discuss your case, and let them go through your options with you.

missbutler

Hi Liam
My pension is in the form of Pension Retirement Bond, Im 46 years of age need to release funds to pay off mortgage before bank repossess

cheers

missbutler

Hi Liam
My pension is in the form of Pension Retirement Bond, Im 46 years of age need to release funds to pay off mortgage before bank repossess

cheers

Liam D Ferguson

missbutler wrote: »

Hi Liam
My pension is in the form of Pension Retirement Bond, Im 46 years of age need to release funds to pay off mortgage before bank repossess

cheers

Sorry, but the earliest you can take early retirement from a Pension Retirement Bond is age 50, except in the case of serious ill-health.

There were companies operating mostly from outside of Ireland that were offering to take Irish pension funds on a round-the-world tour in return for a large commission, in order to avail of more favourable retirement rules in other jurisdictions. However, this loophole has been effectively closed. Revenue now want the individual and the pension company to forward a declaration with any request to transfer funds overseas that says "I declare that the transfer request I am making conforms to the requirement of the Occupational Pensions Schemes and PRSA (Overseas transfer Payments) Regulations 2003 and to Revenue transfer rules, is for bona fide purposes and not for the purpose of circumventing Irish pension tax rules and Revenue pension rules and conditions."

candlemouse

For personal reasons I'm planning to leave employment. I'm 37 and have been in a Defined Contribution Plan/Scheme for more than 10 years. Can I cash in my pension ? and if so how do you go about it ?

Liam D Ferguson

candlemouse wrote: »

For personal reasons I'm planning to leave employment. I'm 37 and have been in a Defined Contribution Plan/Scheme for more than 10 years. Can I cash in my pension ? and if so how do you go about it ?

No. Unless you're retiring due to ill-health, the earliest you can take your benefits from such a scheme is age 50, with the consent of the trustees.

mr j tayto

My Dad is 54 years old with a small private pension worth approx 45k. Although he is currently self employed, his buisness is failing and his health is not great. Would it be possible for him to take his pension as a lump sum, or would he have to be unemployed or deemed to be unfit for work?

Liam D Ferguson

mr j tayto wrote: »

My Dad is 54 years old with a small private pension worth approx 45k. Although he is currently self employed, his buisness is failing and his health is not great. Would it be possible for him to take his pension as a lump sum, or would he have to be unemployed or deemed to be unfit for work?

Is he a sole trader or a company director?

What type of pension plan does he have - Personal Pension, PRSA, Occupational Pension Scheme, Buy-Out Bond, Executive Pension? Different types have different rules as to when and how early retirement can be taken.

mr j tayto

Thanks for the reply Liam, He is a sole trader and its a PRSA (personal retirement savings account) with Canada Life.
He would like to access his money now but is unsure if it would be allowed or if there are tax implications. He feels sure that his buisness will fail within the next 12 months and as i previously stated his current health situation is not great.

Liam D Ferguson

mr j tayto wrote: »

Thanks for the reply Liam, He is a sole trader and its a PRSA (personal retirement savings account) with Canada Life.
He would like to access his money now but is unsure if it would be allowed or if there are tax implications. He feels sure that his buisness will fail within the next 12 months and as i previously stated his current health situation is not great.

Unfortunately, the rules are that for any PRSA, the earliest a sole trader can retire (aside from ill-health) is 60. Oddly, a PAYE employee can retire and draw their PRSA benefits from age 50 onwards.

mr j tayto

Does heart disease qualify as ill health? If so,once the pension is drawn down does thar mean that a person can never work again?

Liam D Ferguson

mr j tayto wrote: »

Does heart disease qualify as ill health? If so,once the pension is drawn down does thar mean that a person can never work again?

That would depend on the severity of the illness. The definition that applies for ill-health early retirement is “permanently incapable through infirmity of mind or body of carrying on his own occupation or any occupation of a similar nature for which he is trained or fitted”.

In other words - unable to work now and unlikely to be able to work ever again.

If a person qualifies for ill-health early retirement but later makes an unexpected recovery, there's nothing stopping them from working again. But that's rare as you have to be fairly seriously ill to qualify in the first place.

mr j tayto

Thanks again for the valuable information Liam. I will pass on same.
Strange that paye can release pension funds from age 50 but self employed cannot.

missbutler

Big thanks for your reply, looks like its the homeless shelter

Kind Regards

Liam D Ferguson

missbutler wrote: »

Big thanks for your reply, looks like its the homeless shelter

Sorry to hear it. I presume you've been down the MARP route with your lender?