# Old pension fund is winding up



## Sam (7 Nov 2011)

When I graduated from college I worked for a company from 2004-2007 and made pension contributions to their company fund for 2 and a half years. Today I received a letter from them informing me that the company is being wound up and I have been presented with a number of options for my pension money (roughly 5,000 Euro).



> 1) A transfer to a similarly approved pension scheme with your new Employer
> 
> or
> 
> ...



I'm not employed at the moment so I presume that just leaves options 2 and 3. I don't really know what these are. Can someone give an opinion on which might be better? Ideally I'd like to cash this money in now-is that possible?


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## Baracuda (7 Nov 2011)

You wont be able to cash in your pension until you are aged 50 at least or if you have to retire on ill health grounds before then.

If you go the PRB route you will be able to cash it in when your 50 regardless of what age you actually retire at. You will not be able to add extra funds to this when you return to work so you will need to take out another pension contract.

If you go the PRSA route you will not be able to cash in until age 60, again you may cash earlier if you retire on ill heatlh grounds. If you decide to retire at age 50+ you can then cash in your pension


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## Sam (9 Nov 2011)

Baracuda said:


> You wont be able to cash in your pension until you are aged 50 at least or if you have to retire on ill health grounds before then.
> 
> If you go the PRB route you will be able to cash it in when your 50 regardless of what age you actually retire at. You will not be able to add extra funds to this when you return to work so you will need to take out another pension contract.
> 
> If you go the PRSA route you will not be able to cash in until age 60, again you may cash earlier if you retire on ill heatlh grounds. If you decide to retire at age 50+ you can then cash in your pension



Thanks for the reply. Is there any difference in the likely growth potential between the PRB and PRSA. Is one of them more volatile than the other?


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## Baracuda (10 Nov 2011)

There should be no difference at all, if using the one company for both contracts. In this case both PRSA and PRB should offer the same basic funds but the PRB may offer specialist funds as well. 

There maybe a difference in charges as PRSA's have a charging cap for transfers of 0% of fund for transfers and an annual fund charge of 1%


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## ClubMan (10 Nov 2011)

Sam said:


> Thanks for the reply. Is there any difference in the likely growth potential between the PRB and PRSA. Is one of them more volatile than the other?


Really depends on several factors such as the charges that apply on each, what funds/assets/indices etc. each allows you to invest in etc.


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