Options for Preserved Benefit from Previous Employer DB Scheme

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User1970

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I currently am in a PS Role with a DB Pension payable from Age 60, I also have an AVC PRSA associated with this employment.

My Question relates to a Preserved Benefit I have with a previous Employer. Current Transfer Value approx 230k. Would it be possible to use this in Isolation to the above 2 from age 57 to 60 to take 25% Lump sum and annual income if I were to retire at 57 and then utilise the PS Pension and AVC PRSA from age 60?

If this were possible could I then take the Tax Free Lump Sum based on years of service at age 60 also.

Hope my query makes sense. I realise that taking the Transfer Value may be poorer value than waiting until 65 to draw an income from this Pension.

Thank you
 
Yes, you can take a transfer value from the preserved DB scheme and draw it down from age 50 onwards and then take your PS pension from 60. You will get a tax free lump sum under both (assuming you don't go over €200,000 lump sum. If so, anything over that amount is taxed at 20%).


Steven
www.bluewaterfp.ie
 
Thank you Steven

I know it won't represent best value but may allow me to look at transitioning from full time employment earlier that planned. 2 lump sums and 3 years earlier looks attractive and worth weighing up.
 
In almost all circumstances maintaining the DB pension will provide better value. But you are right, transferring it to DC arrangement does allow early access to funds, allowing people to retire/ wind down early. That is usually the defining factor for clients of mine who take the transfer value.


Steven
www.bluewaterfp.ie
 
Do check if the scheme is permitting early retirement. More trustees are now granting ER as statutory funding levels have increased.
 
Thank you DBL2018 that is a great piece of advice. I appreciate both yourself and Steven taking the time to post.
 
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