Die 1 year after pension maturity

C

camel

Registered User
Messages
239
Hypothetical question.
What happens to my pension if I die after (or before for that matter) it's maturity. Does it pass on to family?
 
It depends on the scheme. It could pass at a reduced rate to your wife but not usually to anyone else.

Obviously any lump sum you draw is yours to leave to whoever you like.
 
As High Flier says, it depends on what choices are available to you and what choices you make at retirement.

Some possibilities: -

At retirement, you buy an annuity (guaranteed pension for life) - you can choose at the time to buy one that has a guaranteed minimum payment period (usually 5 or 10 years) whether you're alive or dead. You can also choose an annuity with dependent's pension built in.

At retirement you buy an Approved Retirement Fund (ARF) - any unused fund gets passed on to your estate, with different tax treatments depending on your relationship with the receipient.

You die before retirement with a Defined Contribution scheme, Personal Pension or PRSA - The value of the fund passes to your estate.
 
Pardon my ignorance I am not au fait with pension law but .......Was the government at one time under Mc Creevy saying "you could do what you want with the lump sum as long as you paid your initial taxes on it" (not the 0.25 that can be withdrawn)....rather than buying a paltry priced annuity biased towards the financial companies. Was there any development on this or was it usual politic rhetoric of trying to please the crowd?
 
MichaelDes said:
Pardon my ignorance I am not au fait with pension law but .......Was the government at one time under Mc Creevy saying "you could do what you want with the lump sum as long as you paid your initial taxes on it" (not the 0.25 that can be withdrawn)....rather than buying a paltry priced annuity biased towards the financial companies. Was there any development on this or was it usual politic rhetoric of trying to please the crowd?
Click to expand...

I think that what you are referring to are the Approved Retirement Fund Options that were introduced under his tenure.
 
They've also brought in a provision whereby you can cash in your pension for a taxable once off pension payment if it's worth less than €20,000.

Homer
 
You must log in or register to reply here.
Back
Top