Wife taking redundancy, what to do with her DC pension.

[Blackrock1]

We have toyed with the idea of my wife taking a break from her career to look after the kids for a while, now it looks like there could be a decent redundancy package going we have decided to take the plunge.

She has an existing DC pension scheme valued at circa 205k. Whats the best course of action with this on leaving? i know when i was younger i put one scheme i had into a PRB with davy but i didnt think too much about it being honest.

Second query is, basis the current rules, how would she be re eligibility for the state pension. She has worked for 17 years full time (on a reasonably high salary if that makes any difference). She is 40 now, assume that she doesnt ever go back to full time employment.

Thanks in advance.

 

[RedOnion]

Not the question you ask, but make sure she maxes her AVCs for last year and this year. She won't be able to make additional tax relieved pension contributions while she doesn't have relevant earnings. Something we hadn't thought about before my wife stopped working.

Explore the option of leaving the pension where it is also - what are the charges, and investment options available?

In terms of eligibility for state pension, I'm assuming you've young children? The home makers scheme will provide credits

Homemaker's Scheme

If you care full-time for children, or for an ill or disabled person, the Homemaker’s Scheme makes it easier for you to qualify for a State Pension (Contributory).

www.citizensinformation.ie

I'm not well versed in all the changes around state pension, so others might be better able to advise. I've left it on the long finger to research when I get time.

 

[Blackrock1]

thanks, yes had thought about the AVCs and we do have young children, 6 and 2.

 

[NoRegretsCoyote]

Second query is, basis the current rules, how would she be re eligibility for the state pension. She has worked for 17 years full time (on a reasonably high salary if that makes any difference).

Unfortunately it doesn't for state pension. A part-time worker on a low income basically accumulates at the same rate as a CEO.

She is 40 now, assume that she doesnt ever go back to full time employment.

I wouldn't worry much about this. Eligibility is based on up to 40 years' contributions. She has 17 done already, and possible even some from part-time work as a student.

She is not likely to be eligible until 67 anyway, and even part-time work in future will help toward accumulation of credits.


There is also the scheme @RedOnion mentioned.