Post early retirement investment options

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mendacity

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I am looking at taking cner next year. I will get a lump sum of 90k approx on my pension and will have an avc of approx 60k. I am also simultaneously selling a rental property and will have equity of approx 100k. I will take on some self employment on retirement. In these circumstances I am considering my investment options. What are my managed fund options? Can I/should I set up a PRSA or would an ARF be a better option?.
 
If you are maturing your pensions, you can either purchase an annuity with the money or invest in an ARF. The PRSA is not an option. The vested PRSA is only available for those with a PRSA already, they can take the lump sum from it and the PRSA can carry on until age 75, when it has to be matured. The investment options under the ARF are the same that are available under normal pensions.


Steven
www.bluewaterfp.ie
 
Thanks for the reply Stephen. So I can't use funds from the matured pension for a PRSA.

However I will be self employed and will have income as well as equity from a house sale. Can I set up a PRSA with these sources of funding? I'm retiring from the public service at 55 but plan to continue working on a self employed basis.
 
On the day that you retire and mature the main scheme the employer will do the calculations on what you're entitled to in terms of tax free cash and pension. When you have the full details on these you can submit a maturity claim form for the AVCs and an additional information form that will include the main scheme maturity amounts to the AVC provider.

The AVC provider will then do their own calculations and determine whether you're entitled to any further tax free cash from the AVC fund and will give you options on what do with the balance. You can shop around for an appropriate product if the terms are not to your liking from the broker/provider of the AVCs.

It's likely that you would probably get a more competitive annual management charge for the ARF.

Are you also asking about what's available in terms of managed/unit-linked funds for the €100,000?

Will you be able to start a PRSA with the income from your self-employment? Yes. But, you'd also be eligible for a RAC (personal pension) and again you might get better terms on that product which basically serves the same purpose.

Gerard

www.prsa.ie
 
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