# ex. eircom and new pension



## aabusername (26 Jan 2005)

I took early retirement from eircom last year.
I have a pension that kicks in when I'm 60.

I am starting a new job in march.
Can I/What type of pension can I get?
*key question*
Can I start a new pension and use the tax incentives they
provide until i'm in my 60s .
*What I hope to do*
I would like to save money into a pension fund each month
for the next 5-7 years and then take the money out of the
fund as a tax free lump sum.(to avoid tax in my retirement)
(note i think)lump sum must be less than 2.5 times final salary

any advise?
anybody started a new pension since leaving eircom/state body?

Thank You


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## Expert79 (1 Feb 2005)

As long as you are working and paying tax it is worthwhile to pay into a pension and you are allowed to do so

I would recommend that you take out a PRSA as you will have greater retirement benefits this includes the tax free lump sum you mentioned.  However you are only allowed to take out a tax free lump sum of 25% of the total fund value, the remainder must be used to either buy an annuity, ARF or taken as a taxable lump sum.

This is only the best option if your new employer is not going to be offering you access to a pension scheme.

You should also ask your new employer to contribute to your PRSA as they will be making an employers PRSI saving on any contributions you make even if they do not contribute


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