Personal Retirement Bond or PRSA ?

[marsharua]

I have been notified that my former employer's pension scheme is being wound up and that assets, in my case amounting to almost €20,000, must be transferred out. I can only opt to have the assets transferred to either a Personal Retirement Bond or to a PRSA. I have asked for details of charges, fees, etc., but if we assume they will be the same in each case are there any reasons why I should choose one rather than the other. Any advice will be gratefully received.

 

[LDFerguson]

There's a practical advantage of a Buy Out Bond over a PRSA. You can choose to take early retirement benefits from a Buy Out Bond from age 50 onwards, regardless of your employment status at that time. You can only take early retirement from a PRSA before age 60 if you're actually retiring from PAYE employment (and not from self-employment) at that time.

In general, Buy Out Bonds tend to have a wider choice of funds available than PRSAs - this may or may not be important to you.

You're not limited to choosing the PRSAs or Buy Out Bonds your scheme offers you - you can choose your own.

Liam D. Ferguson