changing from DC scheme to PRSA

8

8till8

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A relation of mine is in a company defined contribution scheme and is within 2yrs of retirement. He has a substancial sum in the pension and is required to buy an annuity upon retirement. Would he be better off to change to a PRSA? Even if markets rebound, is he better off with a PRSA anyhow? He's informally spoken to his employer who is open to the PRSA idea and continue contributions to either.

thanks
 
This is a complex area and one that requires professional advice, particularly if the amounts are substantial as you say. I presume the reason the question of switching to a PRSA arises at all is that he can avail of the Approved Retirement Fund options at retirement from a PRSA, which he cannot do in an Occupational Pension Scheme unless he is a shareholding director of the sponsoring employer.

A transfer to a PRSA will only be allowed if he has less than 15 years scheme membership and the scheme itself is wound up.
 
Thanks for that advice, he's discovered that he is more than 15years in the company pension and there are no plans to wind it up, therefore he must stay with DC scheme.
Thanks !
 
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