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Cashing in a Pension - Advice needed

  • 08-04-2016 6:23pm
    #1
    Dell2009
    Registered Users Posts: 82 ✭✭


    Looking for advice in relation to someone reaching Selected Retirement Age (SRA) with a pension of circa €84k. The following options are available:

    1. Extend the term, but if doing so must move from current "with profit" fund to an alternative fund.
    2. Take retirement benefits: Take lump sum and a) buy annuity b) invest in an ARF.

    Circumstances are as follows:
    1 Taxable Income of around €60k (€50k self employed income, €5k rental income , €5k other). €100k+ taxable income when jointly assessed.
    2. Wishes to continue contributing to a pension in order to reduce tax bill on above income
    3. No immediate requirement for a tax free lump sum.

    Therefore questions are as follows;

    1. Should the person just extend the term so as to continue contributing to the pension while still self employed. I assume that if you cash in the pension that will just add another €12k p.a. to individuals income and therefore increase tax bill. i assume the goal is wait to draw down pension when there is no longer self employed income so pension will be taxed at the lower rate.

    2. How come i must move away from the current "with profit" fund and what fund should i move to.

    Any advice would be greatly appreciated. Feel free to direct message if you wish.


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