Situation as follows:
The wife recently turned 60 and has started to draw a small teaching pension (~€10k p/a).
In 2006 she opened a small PRSA with the proceeds of her SSA (to avail of the Pensions Tax Incentive Scheme introduced by Brian Cowen).
She hasn't touched the PRSA since and it's now worth about €20K.
Our understanding is that she can leave the PRSA where it is until she turns 70.
Alternatively she could encash it and draw 25% tax free but due to her small pension, she would have to invest the balance in an AMRF which didn't appeal to her. Furthermore she would have been liable for the annual minimum withdrawal of 4% of the Fund's value.
Now that AMRFs are being abolished we are wondering whether there is any advantage to switching to an ARF or would we be as well leaving her PRSA* untouched for the next few years as we have no immediate requirement for cash.
Thanks.
* PRSA is invested in two Zurich Funds (Balance 33%, Dynamic 67%) which have recorded good growth over the past few years.
The wife recently turned 60 and has started to draw a small teaching pension (~€10k p/a).
In 2006 she opened a small PRSA with the proceeds of her SSA (to avail of the Pensions Tax Incentive Scheme introduced by Brian Cowen).
She hasn't touched the PRSA since and it's now worth about €20K.
Our understanding is that she can leave the PRSA where it is until she turns 70.
Alternatively she could encash it and draw 25% tax free but due to her small pension, she would have to invest the balance in an AMRF which didn't appeal to her. Furthermore she would have been liable for the annual minimum withdrawal of 4% of the Fund's value.
Now that AMRFs are being abolished we are wondering whether there is any advantage to switching to an ARF or would we be as well leaving her PRSA* untouched for the next few years as we have no immediate requirement for cash.
Thanks.
* PRSA is invested in two Zurich Funds (Balance 33%, Dynamic 67%) which have recorded good growth over the past few years.