Working income & Pension hybrid?

F

FirstaidKit

Registered User
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Hi, I am 56 years old and I have run a small company for 30 years. Over those years I have built up a good pension fund and I'm now looking to retire in the next 5 years (at 61 years). My question is; can I work part-time as a director in my company with a reduced salary and still draw down on my pension at the same time?
 
What type of pension plan do you have? PRSA? Occupational Pension Scheme?

Despite clarifications above, I'm still confused about what you want to do. Is it that you want to start drawing your pension now and continue to work part-time for another 5 years until you're 61? Then at 61 stop working altogether?
 
FirstaidKit said:
Retire at 61 years
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Once you hit 60, you can draw down your pension and still continue working. The issue is for company directors who wish to draw down their pension before age 60. To do so, they have to sell their shareholding in their company and severe all links i.e. no consultancy role in the company.
 
In case there's confusion about the apparently conflicting answers above...

  • If you want to start drawing your pension benefits before age 60 (and are not retiring due to ill-health) then @Fortune's reply above is correct.
  • If you don't want to start drawing your pension at 60 or later, then @Steven Barrett's reply above is correct.
 
Fortune said:
Assuming the normal retirement age is 60, or you are in a position to have the normal retirement age of the scheme altered to 60.
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He's the owner of the company. He doesn't need anyone else's permission to access his pension before the normal retirement age.


In over 25 years in this business, I have never seen a member of a defined contribution scheme be refused access of their benefits before the NRA. Technically, it can happen but in reality it never does. Only for DB schemes.
 
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