Moved private to public - options for private pension?

SortingYouOut · 04-05-2023 3:35pm #1

Hi,

I moved to the CS, now on the single pensions scheme and have a private pension with my previous job that is now inactive but with a sum of money sitting there.

Looking at the private pension leaving statement, it advises that my options are -

to let the money sit where it is, without the ability to contribute further, and claim whatever the sum will be at retirement age.
transfer to new employer pension (not possible as CS).
Transfer payment to personal retirement bond in lump sum. My understanding here is that I still won't be able to contribute additional funds but can decide on the investment/portfolio risk for potential gains there?
Transfer to a PRSA.

My interest would be option 3 or 4, but i'm not sure what the best option would be and how i'd even go about the PRSA route.

Has anyone had similar experience and is there a any way I can access this funding now, or at least start a private pension with this transferred across?

AndrewJRenko · 04-05-2023 5:03pm

Why not just let it sit - option 1? What's the benefit to you of 3 or 4?

SortingYouOut · 04-05-2023 7:05pm

https://www.boards.ie/discussion/comment/120555137#Comment_120555137

Leaving it where it is means I can't make calls on the portfolios it spreads across so I was thinking 3 or 4 might allow me manage that aspect. I'd be interested in applying it to something a bit more high-risk - it isn't a huge sum of money either at the end of the day.

I'd even be happy if I could start a new fund myself with with the old pension amount transferred in and I can contribute again, having everything in the one place. I need to start a private pension anyway so would rather have everything in one place for the private anyway, if even possible.

I'm pretty clueless when it comes to all this, i'd just like to either gamble it at something a bit raunchy or have it merged into the standard less risky fund I plan on starting.

AndrewJRenko · 04-05-2023 8:59pm

https://www.boards.ie/discussion/comment/120555568#Comment_120555568

Are you sure that you can't make any portfolio decisions with option 1? Most pension managers will at least give you some options between low risk, medium risk and high risk. It would unusual for them not to allow this, particularly as they will encourage you to switch to low risk in the ten years approaching retirement.

It might be worth looking at the fees and charges involved. Check out what fees your paying on your funds currently in option 1, and see if you could better those fees if you went for option 3 or 4 yourself. You'd probably need to engage with a broker to get these details.

There is an administrative simplicity in having all your funds together in one place all right. Though you might be reducing risk a tiny bit by not having most of your eggs in one basket too.

If your public service pension will be at a respectable level (and you'll need decent service at a decent grade to get to a respectable level under the new Single Pension Scheme), you can probably afford take some higher risks with your private pension funds, as you won't be totally dependent on them to survive after retirement.

howiya · 05-05-2023 12:39am

To echo Andrews comments I'd double check that you don't have some flexibility to change your investment options if you leave it where it is.

I've three pensions that I can no longer contribute to but do have flexibility to direct how they're invested to an extent, which fund, risk etc.

Henry Ford III · 05-05-2023 11:17am

https://www.boards.ie/discussion/comment/120555137#Comment_120555137

Control.

divillybit · 07-05-2023 12:38am

@SortingYouOut out of curiosity have you looked into transferring your pension into the Civil service scheme and using it to buy back years? I'm in my late 30's and joined the Civil service last year and I'm thinking I'll transfer it to my civil service pension pot.

AndrewJRenko · 07-05-2023 1:20pm

https://www.boards.ie/discussion/comment/120564405#Comment_120564405

The current rates for buying back service are quite high. You should compare what you might get by investing that money yourself before committing to buying back service. You might need professional advice to do that comparison.

FoxForce5 · 07-05-2023 1:26pm

Do the numbers on buy back in C's, you might have to live to quite an age to make it worth your while.

Henry Ford III · 08-05-2023 3:01pm

The OP said it wasn't possible in post #1

divillybit · 13-05-2023 7:29pm

Thanks for the replies @AndrewJRenko and @FoxForce5

I got a reply from pensions@nsso.gov.ie saying there is scope for members to transfer retirement benefits accrued in certain other Revenue approved schemes and PRSA's into the single scheme. Transfer value amounts in excess of limits are foregone by the members. Once transfers are effected a transfer of benefits is irrevocable. So if someone transfers in benefits and then leaves any benefits they have purchased by way of transfer will be preserved along with their accrued benefit and become payable at normal retirement age.

Moved private to public - options for private pension?

Comments