Arklife and Pension

C

Conqueror

Guest
I need some help and advice.I am retireing in January for health reasons havinh been 17 years with the company and i will be 58 in 2007.The company are giving me a pension of 50000 pa for 10 years.I have an ark life pension plan valued at 400,000 of which i am told i can get 150000approx tax free immediatly when i retire.I have a morgage of 55000 on my house which is valued at 450,000 owed to tsb.I have 3 children attending university, my previous salary was 140,000 pa so you see i am in for a shock.I am married and my wife has never worked outside the home.
 
The advice i need is should i take the 150000 tax free now and how should i invest it and should i leave the balance with Arc Life.
 
It is difficult to give an answer to a question like this without a lot more information about your financial situation and your goals/objectives.

Really you should be talking to an independant financial advisor.

Generally speaking, most people opt to take the tax-free lump sum as otherwise you will end up paying some tax on it.

Don't quite understand
company are giving me a pension of 50000 pa for 10 years
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as pensions are generally for life - is this a period of guaranteed pension ?
 
Company are giving me 500,000 spread over 10 years ie 50,000 pa gross. i have an appointment with an advisor from AIB as they administer Ark Life.Am I entitled to any social welfarepayments as i have to resign for health reasons.
 
Reiterating what has been said above IMO you should definitely talk to an Independent Broker - ie one who can can sell you products from a wide range of product providers rather than just take advice from someone who will be offering a much more restricted product choice.

I would be also tempted to go for a fee based advisor - someone who will charge a specific fee for time spent advising you rather than someone who is renumerated through commission from a product provider - the latter is less transparent.

Again IMO as above you are generally better taking maximum free cash (unless targeting a specific annual income by purchasing an annuity)

And for most people it is best to pay off any debt - unless you can invest the money at a higher rate than the interest you're paying on borrowings if there are no penalties for repaying earlier if you were on a fixed rate . Mortgage is probably 4.25 -4.5% and at best you might get 4% before tax if you invested you'd get maxumum 4% before tax.
 
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