Drawing different pensions at different ages

[Jordan Belfort]

I have two pensions from current job. A DB that has 15 years accrued and DC+AVC with 5 years. Ideally I will retire early and would like to exhaust the DC before taking the DB because the DB will be pro-rated by how early I retire. I'm told that revenue rules are that pensions from the same employment must be taken at the same time so it appears I cannot take the DC early without also taking the DB

Is there any way around this ? If I set up a PRSA and paid into that instead of more AVCs to my work pension would I be able draw down and basically exhaust the PRSA pension before starting to draw the work pensions (DB + DC ) ? I want to not touch the DB for as long as possible so that it would not be pro-rated by 4.5% a year before I'm 65

 

[Gordon Gekko]

My understanding is that benefits in respect of the same employment must be taken at the same time.

 

[LDFerguson]

Yup - it's as Gordon says.

If I set up a PRSA and paid into that instead of more AVCs to my work pension would I be able draw down and basically exhaust the PRSA pension before starting to draw the work pensions (DB + DC ) ?

In order to qualify for tax relief, your PRSA would have to be an AVC PRSA. An AVC PRSA is the same as an AVC in that you still have to retire it at the same time as the main scheme.

 

[Jordan Belfort]

Yup - it's as Gordon says.



In order to qualify for tax relief, your PRSA would have to be an AVC PRSA. An AVC PRSA is the same as an AVC in that you still have to retire it at the same time as the main scheme.

Thanks folks. One other option might be that we take my wife pension and exhaust that first. However it would be subject to keeping a minimum of €63,500 in the ARF unless she can demonstrate a guaranteed income of €12,700 per annum ?

What type of income could be used to demonstrate that €12,700 ? We will still be a long way before public pension age and I will not be drawing DB?
Would rent from a property meet the criteria ?

 

[LDFerguson]

What type of income could be used to demonstrate that €12,700 ? We will still be a long way before public pension age and I will not be drawing DB?
Would rent from a property meet the criteria ?

It must be income that's guaranteed for the rest of her life. So rents or anything that's payable to you don't count.

In practice, it's the State Pension or any annuity that's payable to her that will count.

She can withdraw up to 4% per year from an AMRF.

Or she can use the €63,500 to buy an annuity.

 

[Jordan Belfort]

It must be income that's guaranteed for the rest of her life. So rents or anything that's payable to you don't count.

In practice, it's the State Pension or any annuity that's payable to her that will count.

She can withdraw up to 4% per year from an AMRF.

Or she can use the €63,500 to buy an annuity.

Thanks for clarifying what guaranteed means.