Pension lump sums

[natterjack]

Hi, i have a pension with a current fund value of €167,000 i stopped paying into this pension a few years ago. The pension is with ZURich and and is a SuperCAPP pension.
I got a statement today and i dont fully understand it.
It says that the current transfer value is €190,000 ? What exactly does this mean and why is it €23,000 more that the fund value? And seeing as it is more should i look into doing something with it?

I have about €110,000 left on my mortage, I was wondering if i could take Money from my pension fund and pay it off? I have 2 years left until i retire and this was my plan, But i fear that after i pay taxes etc i wont have enough in the pension fund to clear my mortgage? and if i do it will leave me with zero in my pension fund?

 

[North Star]

Hi natterjack, SuperCapp is actually the fund that your Zurich pension is invested in. It is a with profits type fund where you get bonuses for holding it over a number of years. It is probably these bonuses which make up the difference between current value amd the transfer value i.e it is worth the higher €190k figure.

There are plenty of threads here re your options at retirement in terms of taking tax free cash. You can either take 25% of the fund tax free from age 60 ( Unless your scheme rules say 65) with the balance to go to an AMRF/ARF. This is like a pension but you draw down at least 4% of the ARf value each year and it is taxed as income. You will also have a second option where you can get up to 1.5 times your final salary tax free and the balance has to go to an annuity, which provide a guaranteed but probably smaller pension for life. As I mentioned above there are lots of good threeads dscussions here re pension and your retirment options to help you with your research.

All the best. Vincent