# Can I cash in my pension early?



## Glan

Hi,
I have a private pension with BOI and both myself and my husband are now unemployed.  We are nearing the end of our savings.  

Can I cash in this pension and incur a penalty.  Is there any way I can get at this money or we are in danger of going into arrears on our mortgage

Thanks


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## LDFerguson

What age are you?  

Is it a Personal Pension or a PRSA?


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## Glan

A prsa


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## uliar

Hi there if u have PRSA in boi you can not cash this, this is general rulz that PRSA and money in that account are for RETIRMENT, as far i know it is not possible to widraw that fund. You can cash this as early reitrment if you reach 50.

I hope u will be again working again


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## Glan

Great - it is with BOI.  Nightmare, I wonder can I transfer it to something else?  Will go in and see them.

Thanks for the replies


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## Janet

I know with job related pensions (i.e. pensions I have had, which were organised through work with whichever broker that company happened to work with) you can only get them back (less a fair whack of tax obviously) if you have paid into them for less than two years.  Not sure if the same rules apply to a pension you have organised privately but it seems likely.  It should be covered somewhere in the paperwork you have probably.


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## mercman

Glan said:


> Great - it is with BOI.  Nightmare, I wonder can I transfer it to something else?  Will go in and see them.



No No, that is the same as going back to the scene of a crime. Find an independent broker and he should be able to advise you of your options. The BoI are only able to sell you their products or those of subsidiary products and are not able to give you truly independent advice. Basically they are interested in lining their own pockets and do not care about you.


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## LDFerguson

Glan said:


> Great - it is with BOI. Nightmare, I wonder can I transfer it to something else? Will go in and see them.
> 
> Thanks for the replies


 
Regardless of who your PRSA is with, the earliest you can access any money from it is age 50, and only then if you are taking early retirement from PAYE employment. 

The only exception to the above rule is if you are taking early retirement due to ill-health, which must be proven to Revenue. You'd need to be medically signed off as being unlikely to ever work again.


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## LDFerguson

Janet said:


> I know with job related pensions (i.e. pensions I have had, which were organised through work with whichever broker that company happened to work with) you can only get them back (less a fair whack of tax obviously) if you have paid into them for less than two years. Not sure if the same rules apply to a pension you have organised privately but it seems likely. It should be covered somewhere in the paperwork you have probably.


 
Refund of employee's contributions is only available on Occupational Pension Schemes ("Company Schemes"); it is not available on PRSAs.


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## boaber

LDFerguson said:


> You can transfer to a Personal Pension but they don't allow retirement until age 60, so no benefit there.



Hi Liam, transfers to personal pension from a PRSA are not allowed - only transfers from a personal pension to a PRSA.



> The only exception to the above rule is if you are taking early retirement due to ill-health, which must be proven to Revenue.  You'd need to be medically signed off as being unlikely to ever work again.



Revenue's blurb on PRSAs....

"Benefits may be taken at any age, if the individual is permanently incapable through infirmity of carrying on his/her occupation."

The emphasis is very much on 'permanently'!!


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## LDFerguson

boaber said:


> Hi Liam, transfers to personal pension from a PRSA are not allowed - only transfers from a personal pension to a PRSA.


 
Thanks.  Edited my post.


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## oysterman

LDFerguson said:


> Regardless of who your PRSA is with, the earliest you can access any money from it is age 50, and only then if you are taking early retirement from PAYE employment.


Can you retire aged over 50 and defer taking your occupational pension until normal retirement age but access your PRSA in the intervening period?


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## LDFerguson

oysterman said:


> Can you retire aged over 50 and defer taking your occupational pension until normal retirement age but access your PRSA in the intervening period?


 
Not if it's an AVC PRSA, no.  Benefits from an AVC PRSA must be taken at the same time as the main scheme benefits, although you can your lump sum from an AVC PRSA and leave the balance invested, but that's another matter.


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## oysterman

LDFerguson said:


> Benefits from an AVC PRSA must be taken at the same time as the main scheme benefits


That's what I thought. I fail to see the policy behind it.

In a world of persistent high unemployment it will surely make sense to incentivize people to retire early. Many won't due to actuarial reductions if drawing down occupational pensions early.

Drawing down early from their AVCs the benefits they would be projected to become entitled to on retirement at normal age would be an obvious way of tiding them over.

If I can be bothered, I might write to the government.

Or am I missing a policy or workability issue?


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## Gregory Martin

Can  I cash in on my static pension


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## Steven Barrett

The rules haven't changed since the previous posts. 

Work related pensions - can draw down from 50
Personal pensions - can draw down from 60
Ill health early retirement - anytime


Steven
www.bluewaterfp.ie


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