Retirement/Pensions Options

M

Michael1234

Guest
I was made redundant about 12 months ago after just less than 30 years service. I am currently in receipt of unemployment benefits, I'm 57 years old and hold out little hope of getting another job.

I was in a DB scheme at the company and the scheme is significantly underfunded.
The trustees have refused my request to draw down by pension early and I now have to consider my other options and I don't know where to start.

They have said they can provide me with a transfer value but I have no idea what I will do with this.

What should I do with this?
Is it better to purchase an annuity or should I get an Approved Minimum Retirement Fund?

I have heard that as a smoker I could get "impaired annuity rates" but haven't been able to find out if any does this in Ireland.

I know this post is a bit all over the place but any help anyone can provide would be very much appreciated.

Many Thanks
Michael
 
Sorry for the bump but can anyone give me any guidance or help
Thanks
Michael
 
Based on your post it is impossible to be specific. Clearly if your scheme is underfunded then any Transfer Value will also reflect that state (maybe even more so). However I think you should ask for a Transfer figure.
Even though thr Transfer Value may look like very poor value, your circumstances may force you to go this route in order to get an immediate income (but I hope not).
With circa 30 years service you will not be allowed transfer to a PRSA. However you could invest the Transfer Value into a Buy-Out Bond and subsequently convert that into an annuity (after taking some as a tax-free lump sum).
Without knowing the Deferred Pension and the alternative Transfer Value it is impossible to compare the options. It is also confused by the fact that even the deferred pension may be subject to a reduction at age 65 if the scheme funding is not improved.
Impaired annuities are really only available to those in very poor health (not just because you are a smoker). Not sure if any annuity provider is offering impaired annuities these days.

I suggest you get details of your anticipated pension at age 65 (assuming that is when you are entitled to such) and ask for a Transfer Value figure and then seek professional advice (or PM me if you wish).

Conan
 
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