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Leaving the Country, what to do with my pension?

  • 12-09-2018 1:46pm
    #1
    Zascar
    Moderators, Motoring & Transport Moderators, Music Moderators Posts: 12,778 Mod ✭✭✭✭


    Moving to Dubai and they don't do pensions over there. I've had one here for a while and have a reasonable sum of money in it. Not sure what my options are. I don't think I can continue to contribute to it as its a company pension, maybe I can change to do a different one? Also I was told to look into continuing contribnutions to my Irish pension. Can anyone point me in the right direction please?


Comments

  • #2
    skippy2
    Registered Users, Registered Users 2 Posts: 393 ✭✭skippy2


    Re your Irish Pension if you mean its for Contributions to your SW Pension you can contact

    Waterford Office for Vol. Contributions 1890690690.........they will let you know if you are eligible to make voluntary contributions or not. It is about Euro 500 per year. You make a once a year payment


  • #3
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    Skippy2 is giving you advice about the State Pension. It's good advice and you should take it.

    But I think your query is about a private pension scheme you were part of. You can leave your fund in the current pension scheme and leave it invested there until you retire. Then you can draw your benefits from it. Or you can transfer it now into a pension policy called a Personal Retirement Bond or Buy-Out Bond - a lump sum pension policy where you choose the provider and the funds. If you have less than 15 years' service in the pension scheme and the value is under €10,000 you can also transfer it to a PRSA. By taking the Buy-Out Bond or PRSA option, you're taking ownership of your pension fund and you won't have to go back to your former employer's pension scheme in the future to access your funds.

    You can't make further contributions to the current pension scheme if you're no longer an employee of the company. Nor can you make further contributions to a Buy-Out Bond. You can make further contributions to a PRSA. The question is - do you want to? The major reason why people put money into a pension as distinct from other forms of saving is tax relief. At retirement, at least some of the proceeds of your pension fund will be taxable. So if you're not getting tax relief on the way in, but getting taxed on the way out, then a pension doesn't make sense. If you're sure you'll be coming back to Ireland after a stint in Dubai, you could just save up money while you're away and then load up a pension plan here (with tax relief) from your savings when you get back.


  • #4
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    Liam D Ferguson wrote: »
    Skippy2 is giving you advice about the State Pension. It's good advice and you should take it.

    But I think your query is about a private pension scheme you were part of. You can leave your fund in the current pension scheme and leave it invested there until you retire. Then you can draw your benefits from it. Or you can transfer it now into a pension policy called a Personal Retirement Bond or Buy-Out Bond - a lump sum pension policy where you choose the provider and the funds. If you have less than 15 years' service in the pension scheme and the value is under €10,000 you can also transfer it to a PRSA. By taking the Buy-Out Bond or PRSA option, you're taking ownership of your pension fund and you won't have to go back to your former employer's pension scheme in the future to access your funds.

    You can't make further contributions to the current pension scheme if you're no longer an employee of the company. Nor can you make further contributions to a Buy-Out Bond. You can make further contributions to a PRSA. The question is - do you want to? The major reason why people put money into a pension as distinct from other forms of saving is tax relief. At retirement, at least some of the proceeds of your pension fund will be taxable. So if you're not getting tax relief on the way in, but getting taxed on the way out, then a pension doesn't make sense. If you're sure you'll be coming back to Ireland after a stint in Dubai, you could just save up money while you're away and then load up a pension plan here (with tax relief) from your savings when you get back.

    Technically you would load up pension with maximum contribution from taxable income when you get back and use your savings to spend in lieu of income ( which is now going to a pension fund) but your logic is solid. I don't think anyine ever plans to retire in dubai anyway.


  • #5
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    Heres Johnny wrote: »
    Liam D Ferguson wrote: »
    Skippy2 is giving you advice about the State Pension. It's good advice and you should take it.

    But I think your query is about a private pension scheme you were part of. You can leave your fund in the current pension scheme and leave it invested there until you retire. Then you can draw your benefits from it. Or you can transfer it now into a pension policy called a Personal Retirement Bond or Buy-Out Bond - a lump sum pension policy where you choose the provider and the funds. If you have less than 15 years' service in the pension scheme and the value is under €10,000 you can also transfer it to a PRSA. By taking the Buy-Out Bond or PRSA option, you're taking ownership of your pension fund and you won't have to go back to your former employer's pension scheme in the future to access your funds.

    You can't make further contributions to the current pension scheme if you're no longer an employee of the company. Nor can you make further contributions to a Buy-Out Bond. You can make further contributions to a PRSA. The question is - do you want to? The major reason why people put money into a pension as distinct from other forms of saving is tax relief. At retirement, at least some of the proceeds of your pension fund will be taxable. So if you're not getting tax relief on the way in, but getting taxed on the way out, then a pension doesn't make sense. If you're sure you'll be coming back to Ireland after a stint in Dubai, you could just save up money while you're away and then load up a pension plan here (with tax relief) from your savings when you get back.

    Technically you would load up pension with maximum contribution from taxable income when you get back and use your savings to spend in lieu of income ( which is now going to a pension fund) but your logic is solid. I don't think anyine ever plans to retire in dubai anyway.

    Apologies Liam you are correct I get what you are saying now. Just didn't read correctly


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