# Personal Pension Plans at retirement



## ???? (24 Aug 2011)

I have a query in relation to the options available for a personal pension plan that I would really appreciate some help on. 

My father has a small Personal Pension Plan, he is age 60 so he is going to take his pension now.  He's going to take the 25% tax free cash and he wants to take the remainder of it in cash and pay tax on it.  

His pension provider has said that he can only take it as taxable cash if he satisfies a minimum income requirement of €19,000pa or if he already has a AMRF and ARF.  

From everything I have read I think he is able to take it as taxable cash without having to satify the requirement outlined above.  I would really appreciate your help one way or the other on this.


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## LDFerguson (24 Aug 2011)

The guaranteed minimum income requirement is €18,000 per year but otherwise the pension provider is correct.  The only exception to this is if his fund is small and qualifies as a trivial pension.  This used to be a fund of €20,000 but I hear it recently changed to €10,000 although I've seen no formal confirmation of this change.  

What size of fund has he?


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## ???? (25 Aug 2011)

Thank you for your reply I really appreciate your help. 

Unfortunately the provider mentioned the €10k limit which he is over if the max tax free cash is 25%. 

Is there any other calculations that he can use for the max tax free cash. 

Secondly, if he is continuing to work can he use his current earning to show the €18,000 guaranteed earnings or does it have to be earnings from a pension.

Thanks again.


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## boaber (25 Aug 2011)

25% is the maximum tax free cash he can take from a personal pension.

Any earnings from current employment are not guaranteed income for life, so can not be used in the €18K calculation


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## Baracuda (25 Aug 2011)

Hi ????

Please see this post http://www.askaboutmoney.com/showthread.php?t=159404

There is away around this though but it is quite long winded and could be quite expencive, here is how it is done:

Transfer the value of the PPP into a PRSA

With your fathers employers consent set up a one member company pension scheme and transfer the value of the PRSA into the scheme.

Company pensions have not been affected by the change and therefore your father would be able to surrender the entire value of his pension providing that entire fund after TFLS was less than 20K


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