# Early retirement advice



## A-nother-person (14 Mar 2021)

Hi guys. I have an occupational pension and have been making small additional AVCs to improve my retirement options but from what I can tell as those AVCs are in my company scheme I cannot access them early without coming to an early retirement deal which I don't want to do.

My thinking is that I would just leave work at 60 and become a deferred member of my pension plan until draw down at 65.

So I want to place AVCs into a separate fund to draw down at 60 which will keep me going til the main pension kicks in and maybe beyond.

Is this something that is possible through a PRSA, or will I simply need to do this through investments/savings?


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## Dave Vanian (15 Mar 2021)

Regardless of whether you're an active member or a deferred member of the pension scheme, any AVCs relating to a pension scheme must be drawn down at the same time as the main scheme benefits.  An AVC PRSA doesn't change that.


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## A-nother-person (15 Mar 2021)

Thanks. I thought as much. I'll have to look at other ways to go early so.


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## A-nother-person (15 Mar 2021)

Dave Vanian said:


> Regardless of whether you're an active member or a deferred member of the pension scheme, any AVCs relating to a pension scheme must be drawn down at the same time as the main scheme benefits.  An AVC PRSA doesn't change that.


Sorry, just re-reading what you've said.

"any AVCs relating to a pension scheme must be drawn down at the same time as the main scheme benefits"

Can I have a separate scheme outside my companies one which I can access earlier than my company pension?
As in, remain a deferred member, but drawn down from a scheme that I have paid into outside of my company scheme.


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## RedOnion (15 Mar 2021)

A-nother-person said:


> Can I have a separate scheme outside my companies one which I can access earlier than my company pension?


No. If the pensions relate to the same employment, they must be all drawn together.

Just to confirm, is your existing pension a defined benefit one?


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## A-nother-person (15 Mar 2021)

RedOnion said:


> No. If the pensions relate to the same employment, they must be all drawn together.
> 
> Just to confirm, is your existing pension a defined benefit one?


I have a split pension. DB and DC. I've been adding to my DC pot with AVCs


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## A-nother-person (16 Mar 2021)

I've been doing some searching and according to an article in the Independent (can't link for some reason) you can draw down different occupational pensions at different times.





> Having two or three different pensions from different employments can give some flexibility when it comes to retirement, where you can 'retire' the funds at different times, says Quinn.





Is it the case that you can have multiple occupational pensions built up that are accessible at different times, but you can't be paying into more than one at a time?

It seems a little odd that I can't just have a company pension, and also pay into my own private one to provide me with more retirement flexibility.


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## RedOnion (16 Mar 2021)

A-nother-person said:


> I've been doing some searching and according to an article in the Independent (can't link for some reason) you can draw down different occupational pensions at different times.


Yes, if they relate to different employments.


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## Steven Barrett (16 Mar 2021)

It is a difficult one for members of defined benefit schemes who wish to go before the normal retirement age if it is 65. The trustees may allow you to take a reduced pension from age 60. It may not work out that bad and remember, you will be receiving 5 years more income from the scheme if they do allow it. 

Steven 
www.bluewaterfp.ie


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## A-nother-person (16 Mar 2021)

Yeah, unfortunately I made the mistake of transferring in an older pension which in hindsight was an awful idea.

Thanks for the advice guys. Much appreciated.


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## A-nother-person (19 Mar 2021)

Sorry to keep coming back, just a thought.... Does rental income count as another income for pension payments? I have a second property (obviously tax compliant) would I be count that as income and offset some tax towards a 2nd occupational pension which I could access separately?


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## RedOnion (19 Mar 2021)

A-nother-person said:


> Sorry to keep coming back, just a thought.... Does rental income count as another income for pension payments? I have a second property (obviously tax compliant) would I be count that as income and offset some tax towards a 2nd occupational pension which I could access separately?


No. You can only make pension contributions in respect of 'earned' income.


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## A-nother-person (20 Mar 2021)

Thanks once again


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## SPC100 (20 Mar 2021)

A-nother-person said:


> Yeah, unfortunately I made the mistake of transferring in an older pension which in hindsight was an awful idea.
> 
> Thanks for the advice guys. Much appreciated.


Can this person transfer back out the value from that other pension, and assuming it was from separate employment, access it separately?


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## Dave Vanian (22 Mar 2021)

SPC100 said:


> Can this person transfer back out the value from that other pension, and assuming it was from separate employment, access it separately?



No.  Not permissible to transfer back out after a fund has been transferred in.


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## studyfreak (25 Mar 2021)

RedOnion said:


> No. If the pensions relate to the same employment, they must be all drawn together.
> 
> Just to confirm, is your existing pension a defined benefit one?


I'd appreciate if you could tell me if where this is officially written? I too had the same questions as Anotherperson and this seems to be the general consensus on forums that you must draw one pension from the same employment but I can't find the official line on this. Is there an official pensions rulebook published anywhere? I believe the pensionsauthority regulate pensions in Ireland but I can't find anything about it there nor on revenue.


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