Merging old PRSA with new one, advice.

[jedentag]

Hi There,

I have a PRSA with a little under €50K in it from job I've just finished up with.

New company has a PRSA with company contributions and my questions is whether I should move PRSA money and merge with new one?

Or should I leave the first PRSA to continue to be invested with contributing anymore (advised you can't contribute to two at once and get the tax benefits) and start the new one from scratch?

Thanks in advance.

 

[TRS30]

Couple of things to consider:

-keeping your current PRSA separate allows you 'retire' this one at a different time to your new one.
-what are the charges & fund choice on your current PRSA compared to your new one.

 

[Redzer]

I personally prefer keeping them separate as you have flexibility to access the previous one whilst still working. This could allow access to the Tax Free Lump Sum earlier which is a nice option to have. You retain options separate from your new scheme.

 

[jedentag]

Thanks Redzer, I was reading that the earliest I could get access due to recent rule changes is 60, the only other way to get earlier access is if I am not in employment. Maybe someone else could confirm on that point. Cheers.

 

[jedentag]

Couple of things to consider:

-keeping your current PRSA separate allows you 'retire' this one at a different time to your new one.
-what are the charges & fund choice on your current PRSA compared to your new one.

Thanks didn't see this at first pass and good question on the charges, I'll need to check out the new one once I formally start with company on Monday. Cheers.

 

[TRS30]

Thanks Redzer, I was reading that the earliest I could get access due to recent rule changes is 60, the only other way to get earlier access is if I am not in employment. Maybe someone else could confirm on that point. Cheers.

You can 'cash in/retire' a pension from a previous employer from age 50 on. Whether this is a good idea or not depends on personal circumstances.

 

[LDFerguson]

You can 'cash in/retire' a pension from a previous employer from age 50 on. Whether this is a good idea or not depends on personal circumstances.

The rules are different for PRSAs. You can only retire a PRSA between 50 and 60 if you are retiring / have retired from all paid employments at the time. (I do have a question mark over how enforceable this rule is, in practical terms, but it's the rule.)

 

[TRS30]

The rules are different for PRSAs. You can only retire a PRSA between 50 and 60 if you are retiring / have retired from all paid employments at the time. (I do have a question mark over how enforceable this rule is, in practical terms, but it's the rule.)

Apologies. I had thought it was the same for PRSAs as company pensions.

Is it possible to switch the PRSA (from the previous employer) to a Buy Out bond so as to have the option of taking money at 50 (while still working)?

 

[LDFerguson]

Apologies. I had thought it was the same for PRSAs as company pensions.

Is it possible to switch the PRSA (from the previous employer) to a Buy Out bond so as to have the option of taking money at 50 (while still working)?

Frayed knot. You can't transfer from a PRSA to a Buy-Out Bond. I believe that many of these rules can, should and may be simplifed in due course but we are where we are right now.

 

[Fortune]

Frayed knot. You can't transfer from a PRSA to a Buy-Out Bond. I believe that many of these rules can, should and may be simplifed in due course but we are where we are right now.

All these rules come from when all pensions other than PRSAs and employer sponsored schemes were to be done away with. The government just failed to do the "doing away with" part of the plan over the last 20+ years.