Buyout Bond or Leave in Company Scheme

Z

Zed

Guest
I intend to leave my job soon. I contribute 5% of my salary to a company scheme, with the company contributing a further 7% of my salary. The vesting period is two years, and I have been with them for the last three years. What should I do with the pension when I leave.

I do not want to go down the PRSA route as I am not convinces of their worth yet.

My options are 1) leave as is in the company scheme, or 2) obtain a but out bond.

Question about buyout bond. If total contributions from myself and company is €20,000, will all of this go into the buyout bond, for me to transfer elsewhere. I have exceeded the vesting period. Is there any clawback from the company, pension provider etc.

Also, with the buyout bond, do I just invest it directly into another personal pension fund i.e a paid up single premium pension.

Any recommendations

Thanks

Zed
 
Zed

Zed,

Despite your concerns on the PRSA, I think it will be worth your while holding off until a transfer into one becomes available.

Two reasons: no charge can be applied on the transfer(not so with a Buy-Out Bond) or a transfer to another company pension scheme.

More importantly, the full suite if retirement options will be opened to you in a PRSA, and we don't as yet know if they will from a Buy-Out Bond.

As your fund is worth more than 4,000, you can't transfer into a PRSA as yet. You could simply eave it where it is until this is made available. That's what I'd do in your situation.

In relation to any charges that can be applied on leaving, none can be if you're in a unit-linked fund - only if you're in a with-profits fund can the life office hit you with a charge (called a Market Value Adjustment).

Hope this helps.

Ification.
 
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