You've a 3rd option; transfer your pension to a 'buy out bond' or PRSA with a provider of your choice.So my question is - is there any positives/negatives to moving funds to new provider ?
Hi Realcork - I'm a bit confused - you say "moving to an individual contract". I would be moving to my new employers company scheme, it's a large multinational so would assume terms would be similar and it would be a group contract - I can compare the admin charges of both old and new.Generally it is advisable to remain in the group scheme as the annual management charge is generally alot more competitive than moving to an Individual contract. However you should query this with Mercer as this may not be the case depending on the size of existing scheme
You can always move your fund to a PRB , PRSA or to your new scheme
Please note that you would have lost your death in service benefit when you left service so the only benefits is the pension pot
I would recommend contacting an independent broker to review your options as you should get competitive terms for a fund of 300k
Thanks RedOnion - That's something for me to think about, although tempting, I'm initially of the mindset to not dip into it early. Ideally I'd like to retire at 60 but that's not something that may now be realistic as the retirement age has gone from 65 to 68 (I think).You've a 3rd option; transfer your pension to a 'buy out bond' or PRSA with a provider of your choice.
One reason not to merge it with your new company's pension is doing so would lose the option of 'retiring' that pension early. As things stand, you can access 25% of the old pension tax free anytime from the age of 50 because you've left the employment.
Edit: post crossed with @Realcork
Generally, yes.Am i correct in saying that PRSA's admin fees are more expensive ?
Willis have a market cap of $14.28 billion compared to Mercer who are valued at $552 million. They are a much bigger company than Mercer!!!Hi All,
Appreciate you advise on possible pros and cons on the following scenario.
I (45M) have recently left an employer after 25 yrs service. I have a DC pension with approximately 300k. So I am a deferred member of this scheme.
Over the years the company, through M&A's had changed providers from New Ireland to Mercer to Willis Tower Watson, and as such insisted that we move the funds we had to the new provider. had no choice or issue at the time, So as it stands atm, 300k in WTWatson.
The new employer has pension provider (Mercer aspire - administered by Zurich Life)
I have seen a short q&a with Eoin McGee where he advises people to keep their pensions in the old pension. I may have misunderstood him, or maybe he was referring to a specific situation, but I like the idea of moving my funds into my new employers scheme. I was never comfortable with WTWatson, as they never seemed like a pension company that I was familiar with, and I would feel more comfortable if my pension was managed by one of the more familiar providers.
So my question is - is there any positives/negatives to moving funds to new provider ?
Company has a death in service policy of x times salary + pension fund, so I'd like to have the 300k in the one spot, in the event of endgame. Assuming it would be easier for my wife and kids(teens) to gain the benefits.
I never really know how to review the performance of my pension, it doesn't seemed to have grown much in the last 1-2 years. I have invested in the "manage it for me" with high risk type selection. Understand that this may be down to the markets, but any advise of where/how to get a better understanding of the performance of my pension ?
Anyway - appreciate any thoughts / advise.
Kind Regards,
TisMe.
I didn't realise that part. Don't tell my wife!The biggest benefit of that is that if you died pre retirement, the money is paid to your spouse tax free and she is not limited to 4 x salary and the value of personal contributions (with the remainder being invested in an ARF/ buy an annuity).
If it goes into an BOB first, it cannot then go into a PRSA (the BOB will be done away with at some point in the future too). Also, under a BOB, you can access the fund from age 50. With a PRSA, you must have actually retired. Small differences but important ones if you are looking to claim early.I'd keep separate, you could always move into a prsa (for a day), take tax free cash and stick the remainder in an ARF,, If aged 50, it's possible to get much lower fees on an ARF, 0.35% or 0.4% I.eml that th3 company admin charge
Flexibility of keeping separate worth a lot imo
This is not true. Some providers may have “foolishly” signed up to this so they could pay more commission to brokers but this is not universal.With a PRSA, you must have actually retired.
Retiring early from a PRSA just requires that you are over 50 and it contains no contributions relating to your current employment.This is not true. Some providers may have “foolishly” signed up to this so they could pay more commission to brokers but this is not universal.
This is not true. Some providers may have “foolishly” signed up to this so they could pay more commission to brokers but this is not universal.
the pension authority confirmed that a prsa can only be accessed from age 50 to 60 if the person is economically inactive. This is different to rules from accessing a PRB from age 50Retiring early from a PRSA just requires that you are over 50 and it contains no contributions relating to your current employment.
Show me where this is written in law that is regulated by the PA?the pension authority confirmed that a prsa can only be accessed from age 50 to 60 if the person is economically inactive. This is different to rules from accessing a PRB from age 50
If that's the case then what happens if...the pension authority confirmed that a prsa can only be accessed from age 50 to 60 if the person is economically inactive. This is different to rules from accessing a PRB from age 50
Oisin , not trying to state an argument . Im just outliningShow me where this is written in law that is regulated by the PA?
sorry clubman , maybe im confusing the thread, i was just referring to early retirement rules from a PRSA.If that's the case then what happens if...
Does somebody (who?) stop ARF drawdowns or annuity payments? Or is there some tax (clawback?) penalty?
- You stop working
- You take a tax free lump sum
- You invest the rest in an ARF
- Or you buy an annuity with the balance
- You start drawing down pension income
- You take up employment subsequently
I wouldn't trust the Pension Authority's opinion on anything.the pension authority confirmed that a prsa can only be accessed from age 50 to 60 if the person is economically inactive. This is different to rules from accessing a PRB from age 50
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