Boston Guinness
Registered User
- Messages
- 16
Hi all, just some quick questions on my pension situation.
I have a Defined Benefit pension with my company which was closed in 2010. At that time, the company offered a choice to keep enrolled in the DB plan or they would buy me out and put €220k into my separate Defined Contribution (AVC) pension plan (their calculation as to what my DB pension cost in the market place at that time).
When the scheme closed in 2010, I had been 9 years with the company and the last pension benefit statement I received in 2019 confirmed that upon retirement I would get €9,135 p.a. (if my employment was terminated on 01/01/2019). I just turned 60 and now doing a little spring clearing on my finances. I still work for the same company and retirement age is 65. I've asked for an updated pension benefit statement.
In effect I have a DB pension with my company which pays out €9,135 p.a. on retirement (as of 2019);
I have an AVC separately which has approximately €320k in it and I'm contributing monthly into it.
When I retire, I can take out 25% tax free lump sum. However, I'm not sure which scheme I can take out this lump sum amount...the Defined Benefit scheme or my AVC scheme (Defined Contributory scheme). If I take the lump sum from my AVC scheme, it's pretty easy to calculate as I know how much is in that account. However, if it's from the DB scheme, how is the 25% lump sum deducted? Is it on the market value of the plan at the time I retire?
Sorry if the post isn't clear but pensions are a little daunting to me....just trying to get a handle on it. Thanks!
I have a Defined Benefit pension with my company which was closed in 2010. At that time, the company offered a choice to keep enrolled in the DB plan or they would buy me out and put €220k into my separate Defined Contribution (AVC) pension plan (their calculation as to what my DB pension cost in the market place at that time).
When the scheme closed in 2010, I had been 9 years with the company and the last pension benefit statement I received in 2019 confirmed that upon retirement I would get €9,135 p.a. (if my employment was terminated on 01/01/2019). I just turned 60 and now doing a little spring clearing on my finances. I still work for the same company and retirement age is 65. I've asked for an updated pension benefit statement.
In effect I have a DB pension with my company which pays out €9,135 p.a. on retirement (as of 2019);
I have an AVC separately which has approximately €320k in it and I'm contributing monthly into it.
When I retire, I can take out 25% tax free lump sum. However, I'm not sure which scheme I can take out this lump sum amount...the Defined Benefit scheme or my AVC scheme (Defined Contributory scheme). If I take the lump sum from my AVC scheme, it's pretty easy to calculate as I know how much is in that account. However, if it's from the DB scheme, how is the 25% lump sum deducted? Is it on the market value of the plan at the time I retire?
Sorry if the post isn't clear but pensions are a little daunting to me....just trying to get a handle on it. Thanks!