# Pension Transfer Options - Bonds/PRSA



## casper ghost (29 Apr 2010)

Hi,

I had a pension with a company which has now gone into liquidation. I am currently a civil servant and was told that my pension (now worth approx €5,000) woudl buy me 6 months onto my years (I won't have anywhere near 40 years service at 65). So that is a non runner.

The company organising the pension have given me the option of a Personal Retirement Bond or a transfer of the value into a PRSA. They recommend a Personal Retirement Bond as I would be entitled to take more of a Tax Free Lump Sum at retirement than a PRSA.

Which do you think would be more suitable? Any advice would be greatly appreciated.

Regards,
Casper


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## mtk (29 Apr 2010)

get the added years usually good value in civil service . do your own simple calcs to check though


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## casper ghost (29 Apr 2010)

Thanks mtk

But it only 'buys' me 6 months, I'd need €10,300 for one full years service!


btw I'm clueless about this sort of thing - thanks for the reply.

Regards,
Casper


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## oysterman (30 Apr 2010)

casper ghost said:


> They recommend a Personal Retirement Bond as I would be entitled to take more of a Tax Free Lump Sum at retirement than a PRSA.


I wonder about the thinking behind their advice. You will be many years short of full service at retirement so your lump sum is likely to be far less than that permitted by Revenue => you could almost certainly draw down the small amount you'd have ended up with in a PRSA as an addition to your tax-free lump sum.

What was the reasoning they gave you?


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## casper ghost (5 May 2010)

oysterman said:


> I wonder about the thinking behind their advice. You will be many years short of full service at retirement so your lump sum is likely to be far less than that permitted by Revenue => you could almost certainly draw down the small amount you'd have ended up with in a PRSA as an addition to your tax-free lump sum.
> 
> What was the reasoning they gave you?



They don't know/care that I'm a civil servant - maybe that's the reasoning. The letter just states that the Personal Retirement Bond would allow more of a tax free lump sum at the end. 

Do my civil service years allow me to use the PRSA more effectively?

Thanks, Casper


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