Getting a refund from pension.

H

hope4711

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I have a pension scheme which I set up in October 2007. There's about 30k in it which is about 20% down in value. I have an overdraft of close to 10k which I need to sort and I have no emergency fund. Given the current climate I'm thinking of cashing in the pension or at least part of it. Obviously it's not the best solution and tax will be payable but in the circumstances I think it's probably the best solution.

Any views or suggestions?
 
Unless you're at retirement age or have an illness/disability you won't be able to gain access to your fund.
 
Not strictly true, jimbobp. If you've had a PRSA for less than two years, you can cash it in, I believe. I've seen it posted on here before, but can't remember the details.
 
If the value of a PRSA is less than €650.00 and it has been paid up for two years you can get a refund of contributions paid. It wouldn't be taxed & you would get the surrender value of the policy.

That obviously doesn't apply in this instance.

If an employee leaves an Occupational Pension Scheme within two years, they may get a refund of the value of their own contributions, less tax, but that doesn't seem to apply here either.
 
You cannot withdraw money from a Personal Pension plan before age 60 except in a case of serious ill health.
 
Even though I wont be retiring for another 30 years from time to time I check the value of my pension (PRSA with EagleStar) on line. I was amazed to see how much it has recovered in the last 3 or 4 months - I reckon it has bounced between 10 and 15%. So my advice to OP, hang in there - tis a long term investment and hopefully things will continue to improve....
 
Double the check the above posts, I think with certain pensions you can close them within two years. But you might pay a heavy penalty.
 
jack2009 said:
Double the check the above posts, I think with certain pensions you can close them within two years. But you might pay a heavy penalty.
Click to expand...

That's correct - see post #4 above re Occupational Pension Schemes. Penalties will vary depending on the specific contract - some won't have any at all, others will.
 
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