# Cash in pension policy



## dunkerron (15 Feb 2012)

I have a pension policy on which I am making no additional payments and which seesm to be reducing in value as time passes. I am trying to access the funds to offset against my mortage and home improvement loans but have been told I can only transfer to another fund. Is there a way of getting approval to cash in a pension policy?


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## painterman (15 Feb 2012)

Hello I'm in the same boat as well just got off the phone from BOI I have 2 pensions 1 PRSA and I ex company defined benefit after speaking on the phone to the bank lady Revune will not allow cash in until retirement. They will look at I'll health for early retirement any one with other info I'm wondering should I transfer PRSA into ex company one I have this one since 1990 PRSA since 2005 I got roggered with fees on fund value with PRSA of 6165 euro fees were 291 euro 
Painter Man


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## LDFerguson (15 Feb 2012)

Revenue don't allow access to pension funds before retirement. That's the _quid pro quo_ for the tax relief on contributions and tax exemption on pension funds. Early retirement can be from age 50 in respect of Occupational Pension Schemes, with the agreement of the trustees. It can be from age 50 from a PRSA where you're retiring from PAYE employment at that time. For all other pensions, earliest retirement age is 60 except in the case of serious ill-health or where a PRSA fund is worth €650 or less and no contributions have been made for two years.


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## ANORAKPHOBIA (15 Feb 2012)

"It can be from age 50 from a PRSA where you're retiring from PAYE employment at that time"

Is it correct to say that this stipulation does not preclude you from taking up further PAYE employment with a different employer?


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## 44brendan (15 Feb 2012)

Yes, no preclusion to continuing working while drawing a pension.


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## ANORAKPHOBIA (15 Feb 2012)

Thank You


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## marypoppy (28 Feb 2012)

*cash in pension*

I dont wish to retire yet but want to move the cash from an SSAS trustee a/c to a deposit a/c poss. state savings. Is this possible without paying more fees to the trustee co.



LDFerguson said:


> Revenue don't allow access to pension funds before retirement. That's the _quid pro quo_ for the tax relief on contributions and tax exemption on pension funds. Early retirement can be from age 50 in respect of Occupational Pension Schemes, with the agreement of the trustees. It can be from age 50 from a PRSA where you're retiring from PAYE employment at that time. For all other pensions, earliest retirement age is 60 except in the case of serious ill-health or where a PRSA fund is worth €650 or less and no contributions have been made for two years.


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## LDFerguson (29 Feb 2012)

You can choose to set up a new deposit account within your SSAS.  The trustee will need to be involved with the setting up of such an account as the trustee must be joint signatory.  I presume the trustee will expect to be paid for such work, but that would be in accordance with whatever agreement on payment you have with the particular trustee since the start.  

As an aside, I'm not convinced of the efficiency of using certain State Savings products within a SSAS.  Some State Savings products are already tax-exempt on interest earned.  But all deposits held within an SSAS are exempt from DIRT.  You might get a better rate of interest with the same State guarantee elsewhere on a deposit that would normally pay DIRT.


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## marypoppy (29 Feb 2012)

Thanks LD The trustee fees are eating into the deposit so any interest will probably go to them, I would prefer to leave this scheme (SSAS)


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## LDFerguson (29 Feb 2012)

It's possible to move the fund to an insured scheme and still invest in deposits, if deposits are your chosen asset.  Cost on an insured scheme tends to be on a percentage basis so your broker should compare the relative costs of holding the fund in an SSAS versus an insured scheme.  As a very general rule, insured schemes tend to work out lower cost for smaller funds while the SSAS can be lower cost for larger funds.


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## marypoppy (2 Mar 2012)

OK thanks for that LD


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