Thank you for letting me know your experience. I am aware and fully understand there is significant value in just leaving pension as is.Presumably the 368 sterling is £ 386,000.
Taxfree lump sums in Ireland are usually 25% not 30%
It is unlikely that Brexit will have an impact on the defined benefit pension fund obligations - other than any fall in sterling, if any
It may be difficult to get a transfer to an Irish Pension product but not impossible.
An important criteria is the status of the defined benefit fund - is it well funded? will the company stand behind it in case of future problems?
I had a similar experience some years ago, but the fund was reasonably well funded, and the company was making good on its promise to continue funding so I stuck with the fund and now draw a pension monthly. A guaranteed 5% rise every year to retirement is not to be sneezed at
Thanks Marc.Part of the confusion comes from being "offered" a transfer value.
Imagine if they hadn't sent you a cash equivalent transfer value and at normal retirement age you just received the guaranteed inflation protected pension for the rest of your life and 50% to your partner for the rest of their life - would you even have asked the question I wonder?
Thanks Marc for your comprehensive detailed reply and potential costs for formal advice. Its a starting point for me to support me making a decision as I didnt know what advice costs would involve.We are currently advising another client in a very similar situation.
UK defined benefit already transferred to Ireland. Now considering early retirement and needs to consider all of the issues around UK tax exposure and Irish Pension rules. We are currently awaiting an answer from HMRC.
Its a very complex area and yes you do need both UK and Irish specific advice on this. Unfortunately, an unregulated mostly anonymous board isn't really the place to do it.
Our minimum fee is €2,500 plus VAT and you might also need to pay a UK Defined benefit transfer specialist. Their fee is £2,000 inclusive of VAT.
So, you would potentially be looking at around €5000+ in fees with a high probability that the advice would be to remain in the current scheme.
This is why in the UK the regulator, the FCA, has introduced a "triage process" whereby people considering their options are given access to the facts and are able to consider their options without necessarily getting a "full advice" service.
I think you have convinced me there is a need to introduce such as service in Ireland.
I forgot to say: The "free" advice probably costs £11,500 when you are encouraged to take the transfer! That's 3% of your pension fund!
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