Retired ill health and defined contribution pension

[Daddy Ireland]

My partner aged 54 has retired on ill health grounds from the public service and is receiving a defined benefit pension. She has a private pension pot of approx 140k from another employment split between ARF 65k and AMRF 75k current values. Can she drawdown some of both the ARF and AMRF before 60 ? Could she drawdown the full monies and would they be subject to the top rate of tax ?

 

[LDFerguson]

Is her defined benefit pension greater or less than €12,700 per year?

 

[Daddy Ireland]

It's approx €10,500

 

[LDFerguson]

She can withdraw up to 4% per year of the value of her AMRF.

She can withdraw any amount she likes from her ARF. There might or might not be charges imposed by the ARF provider for withdrawing a large amount.

Any withdrawals from the ARF or AMRF are taxable as income. They wouldn't necessarily be all taxed at the high rate. For example, she could spread withdrawals over a number of tax years.

 

[Daddy Ireland]

Thanks Liam