Brendan Burgess
Founder
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If a person has a large defined contribution pension fund and he becomes bankrupt, is the pension fund ring-fenced?
From the Brendan Murtagh case, the ARF is a personal asset and must be made available to creditors.
So if someone is retiring, they should take an annuity instead of an ARF, so that creditors shouldn't seize it. However, they may have to contribute the income from the annuity to towards their creditors.
But if someone has a choice, should they stay in the pension fund as long as possible to avoid the fund getting caught by the creditors?
From the Brendan Murtagh case, the ARF is a personal asset and must be made available to creditors.
So if someone is retiring, they should take an annuity instead of an ARF, so that creditors shouldn't seize it. However, they may have to contribute the income from the annuity to towards their creditors.
But if someone has a choice, should they stay in the pension fund as long as possible to avoid the fund getting caught by the creditors?