Retirement Plan Help

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Fitzy

Guest
As indicated in my retirement plan I have the choice of transfering into either a Personal Retirement Bond or a PRSA, I've researched both options but am still unsure, any advice would be greatly welcomed.
 
Fitzy - why transfer at all?

A PRSA is likely to have an annual fund charge of 1%, and there may be some complex paperwork before a transfer can be made. On the other hand, a PRSA will allow you access to ARFs when you retire.

The charges for personal retirement bonds vary - you need to get the details. Some of them can be very good value. How much (if any) is the initial charge, and how much is the annual fund charge.

But remember it is often best not to transfer at all. What happens if you leave your entitlements where they are?

d
 
The option came about through a redundancy package I took last year, if I dont make a choice my entitlements will automatically be transfered into a personal retirement bond, the detail of which I am not entirely sure. I have very little knowledge in this area as I never had need before thus I'm not exactly sure what I should be looking at in order to make the right choice.
 
One obvious thing to check out is the charging structure on a PRB/BOB versus a PRSA. In some cases the former can be more competitive than the latter. And with some PRB/BOBs you can get a > 100% allocation rate on transfer in. I'm not sure what other implications there might be in transferring to a PRB/BOB versus a PRSA (e.g. d53 implies that ARFs are not an option for the former - is this true?) so you would want to clarify all such issues in advance of making a decision. Perhaps independent, professional advice would be a good idea especially of the fund represents a large proportion of your overall retirement savings?
 
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