Pension Contribution Advice

[friday2018]

I currently have €700k in my employer's occupational pension scheme and €80k in a separate old PRSA. I am leaving my employment (not retiring) and my employer has agreed to make a contribution of just over €500k into my pension. I am 51. Would appreciate all advice on any relevant considerations I should be weighing up. This has all happened quite quickly but already I have these running through my head:

• My occupational pension scheme's allocation is heavily weighted to the equities market and I am nervous of leaving it that way with this large contribution about to land.
• I need to re-check my fund allocation and admin costs. They were reasonable at time of setup but needs re-checking.
• It may provide me with more flexibility if I invested this €500k in a fund other than my occupational scheme

 

[GSheehy]

Has the employer confirmed that the scheme has the scope to accept the lump sum via maximum funding?

What do you intend to do with the the occupational pension scheme value, after you leave? You'll have to find out the current costs first.

Nothing to stop you choosing a different fund for this lump-sum via the scheme but if your intention is to buy an ARF with the 75% then your investment timeframe is much longer than thinking of it in terms of 'a' retirement date.


Gerard

www.prsa.ie