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Personal Pension

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  • 11-08-2018 10:45am
    #1
    Navigator.123
    Registered Users Posts: 9 ✭


    Hi. I have a personal pension valued at E28900. I would like to take all of this and close the Plan. I am not interested in reinvesting any of it in an ARF or a guaranteed pension. I need the funds to do some work in my house.

    I have now been told that if I am in receipt of another pension of more than E12700 p.a. and if I don't want to reinvest 75% of my personal pension of E28900 (I can take 25% as a cash lump sum) I can draw down the entire fund as taxable cash.

    I have a contributory state pension of E238.50 p.w. (= E12604.72 p.a. including 85% Christmas Bonus). Therefore, I am short E95.28 (E1.83 p.w.).

    (My wife's income and my rental income for a property cannot be factored in for this assessment). I do receive Dept of Agriculture premia payments but I dont think that these could be factored in as they are not guaranteed.

    My finanical advisor has been useless - basically telling me to complete the papers, send them off and see what happens with the Revenue!

    Has anyone any experience of this situation and is there a way that I can withdraw all of the E28900 (all taxable if necessary) . I want to invest the money in my house and we dont have any liabilities).

    Thanks
    Navigator


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    #2
    Blitzkrieger
    Registered Users Posts: 6,660 ✭✭✭Blitzkrieger


    I'd be surprised if it's allowed, but maybe you should be looking for a dedicated pension's advisor? There's some good independent ones in Cork to be found with a quick google.


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    #3
    Navigator.123
    Registered Users Posts: 9 ✭Navigator.123


    thanks


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    #4
    Navigator.123
    Registered Users Posts: 9 ✭Navigator.123


    thanks. I was hoping that I wouldnt have to go down the pension route again and that say a sayings type account with interest of E96 per year would suffice.


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    #5
    yaboya1
    Registered Users Posts: 4,610 ✭✭✭yaboya1


    I think you can buy an annuity for the shortfall, then withdraw the rest.
    So if annuity rate is 1%, 95.28/1% = €9,528.
    Take that off the 75% and withdraw the remainder (after tax).


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    #6
    Navigator.123
    Registered Users Posts: 9 ✭Navigator.123


    Thanks. A return of 1% is very unattractive. Are the returns on an Annuity as low as this? I wonder how much a Pension Company's fees/charges would be to set up and keep this in place.

    Can an Annuity Scheme be cancelled at any time?

    Thanks
    Navigator 123


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    #7
    yaboya1
    Registered Users Posts: 4,610 ✭✭✭yaboya1


    Navigator.123 wrote: »
    Thanks. A return of 1% is very unattractive. Are the returns on an Annuity as low as this? I wonder how much a Pension Company's fees/charges would be to set up and keep this in place.

    Can an Annuity Scheme be cancelled at any time?

    Thanks
    Navigator 123

    I'm not sure what the rate are at the moment, but just used 1% as an example. Best to check with the individual companies. Same goes for the charges.
    Almost certain an annuity can't be cancelled, ever.


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