Stop paying into a PRSA???

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Question2000

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Hi

My aunt is coming near retirement and as she is self employed and has only had a Pension for about 10 years and and wont have a a lifetime guaranteed income, so she only has an option to take 25% lump sum tax free and iinvest the rest into an AMRF.

She doesnt want to have 75% of her money locked in until she as 75 years old as she wants to use it now.
She currently pays €1000 into her PRSA. Can she stop paying into the PRSA now which would stop her tying up more money into a AMRF eventually?
 
After taking the tax-free lump sum of 25% she has only two options:
1 Invest balance (up to €120,000) into an AMRF until age 75, or
2 Buy an annuity with the balance

If she will not satisfy the income/pension requirement of €18,000 p.a. then buying an annuity is her only choice, unless the residual fund value is small and she can seek to encash it under the "trivial pension" rules.
 
Start another PRSA. There is no legislation saying you must cash in ALL your pension funds. She can save into a new PRSA and at a later date cash it in if needs be and still get the 25% tax free.
H
 
After taking the 25% tax free lump sum, your aunt can leave the balance in the PRSA until age 75.

She can take drawdowns from it at any stage (subject to PAYE). She does not have to go the AMRF route.

This is known as a "vested PRSA"
 
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