25% of occupational pension at 50 years old

MrsG09

Good morning all

due to the recent sudden death of a sibling, my husband and I have reevaluated our long-term plans.

just to give you an overview-

both aged mid 40’s in private sector jobs. 250k remaining on mortgage over 15 years.

he has 225k in 2 pension plans. I have 270k in current employer pension.

our plan was to encash all pensions at 25% at age 50 (afaik this is tax free)

to buy a holiday apartment in Spain.

I would really appreciate opinions on this please. Neither of us are fantastic financially wise. I hope this is in the correct thread section.

many thanks in advance

Geuze

I suspect you can get 25% tax-free at age 50, if you retire from the two jobs?

Geuze

https://pensionsauthority.ie/lifecycle/benefits_payable_on_retirement/

Benefits payable on retirement

On retirement from a private pension arrangement you will have a number of options available to you. The decisions you take at this point will have a significant bearing on your financial security and that of your dependants. You should consider taking advice when deciding upon your retirement options.

Your options at retirement may include:

• taking a tax-free lump sum, subject to limits set by Revenue,
• receiving a pension (sometimes provided by an annuity),
• transferring some or all of your retirement savings to an approved retirement fund (ARF),
• taking a taxable lump sum, and
• providing for dependants.

Normal retirement

Normal retirement age is the age at which you can retire and take your full benefits under an occupational pension scheme…

Early retirement

Most pension arrangements in the private sector permit members to retire early in certain circumstances…

Ill-health retirement

The onset of a permanent illness or disability that prevents you from working would have serious financial consequences…

Late retirement

Most pension arrangements in the private sector permit members to retire after normal retirement age in certain circumstances…

Lump sums

Virtually all pension arrangements allow you to take a tax-free lump sum within certain limits at retirement…

Pensions

The main purpose of pension arrangements is to provide additional income in retirement…

Purchasing an annuity

The term ‘annuity’ means a series of pension payments, normally monthly, until a particular event occurs…

Increases to pensions in payment

Pension increases in retirement are important as they help your pension keep pace with inflation…

Boardnashea

Talk to a financial adviser who can look at all the circumstances and give you informed and professional advise

Viscount Aggro

If you take the ARF option, you will be taxed as Irish tax resident.

This is the problem with retiring to a lower tax country.

Jim2007

https://www.boards.ie/discussion/2058319387/25-of-occupational-pension-at-50-years-old

What are you actually trying to do? To start with you don't have a legal right to retire to any EU/EEA/CH until you reach retirement age which would be 65 and the age is rising. There is a possibility to retire early to most European states, but that means you need to show that you have sufficient income from non economic activity - interest, dividends & royalties to do so. You also need to take into account that you'd miss 15 years of state pension contributions and that the Spanish authorities would be responsible for the administration of your pension although it would be paid by the Irish state. And since you'd have no state pension from Spain, the Irish state would be responsible for your healthcare.

People got a way with a lot of things in the past, but once they start scanning every passport entering and leaving the Schengen Area all of that will stop because it will be very easy for the authorities to clamp down on what has been going on unchecked. I expect a lot of people will get some very unpleasant surprises at that point including having to sell of property and exit the country.