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Pension Advice (PRB)

  • 07-08-2016 12:44pm
    #1
    hawkwind23
    Registered Users, Registered Users 2 Posts: 1,189 ✭✭✭


    I recently received a letter from a former employer informing me of a pension scheme.

    The amount is around €30000.

    I would appreciate some initial advice.

    On the letter i am given 3 options.

    1. default option a transfer value to New Ireland PRB etc
    2. transfer value to a pension product of my own choosing
    3. transfer to another pension scheme.


    i am 55 and understand that i may be able to "cash in" this pension.
    Am i right in thinking that or will i have to add the sum to another pension and not be able to release it until 60+?

    If i can cash it in is it a simple enough process?


Comments

  • #2
    Merowig
    Registered Users, Registered Users 2 Posts: 413 ✭✭Merowig


    The pension fund is winding down or what is the background for the letter?
    If the fund is winding down you can also transfer to the PRSA which can be a bit more flexible than a PRB.

    You can get a lump sum and can buy an annuity with the rest (shop around for the annuity you don't need to buy it from the provider holding the fund).


  • #3
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    Yes, you can transfer to a Personal Retirement Bond but if you go with New Ireland or any other provider, there are at least 8 options available to you, find out if there are any encashment charges if you draw down the benefits in the first 3-5 years.

    If you transfer to a PRB then you can access it from age 50 too, so you could transfer it and then draw down the benefits immediately.

    You should also confirm that you are getting a 100% allocation of your fund i.e. that a PRB provider like New Ireland are not taking a percentage of your pension for themselves.

    Also check the annual management charge on the PRB as this can vary greatly between providers and recommended funds.


  • #4
    hawkwind23
    Registered Users, Registered Users 2 Posts: 1,189 ✭✭✭hawkwind23


    Thanks for the replies , appreciate it.
    Spoke with someone from New Ireland and they said i would get a more detailed letter which will explain charges etc.
    They seemed to suggest that i could take a lump sum of around €14000 and then several hundred euros each year? All a bit vague.
    It was a company that i worked for years ago so not sure of the ins and outs of what happened them.
    I also suspect New Ireland are very keen to take over the fund hence the advice.


  • #5
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    New Ireland are the pension providers and are advising on their own option, but you should get independent advice so that you can look at other pension companies in Ireland. There may be a better deal out there for you with the likes of Standard Life, Davy Select, Aviva, Friends First, Irish Life to name a few others.


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