I have a small pension (compared to whats being mention here) of almost €90k that is currently in a Defined Contribution Scheme from my previous Employer. I would like to get access to some of it to try clear down some of my mortgage balance to reduce monthly repayments.
I understand that there is a requirement to put €63.5k in to an AMRF so I will be left approx €25k.
Can I drawdown all the €25k in one go and pay tax/ prsi/usc on it as I had waived the tax free lump sum when I was made redundant a number of years ago? If so who do I need to do this for me and roughly how much fees or hidden costs I haven't factored in would I be looking at?
Then with the €63.5k I intend to invest in something that will give me maybe a 2-3% return. I understand there is the option to drawdown a max of 4% a year from this, I'm presuming this is on the profit (if any) and that I would need to keep the €63.5k, is this correct? Again is it a broker or should I contact Zurich etc myself.
A few things that may be relevant, I'm on Social Welfare Disability Allowance and due to health reasons it will be the case probably up to government retirement age. I know it probably doesn't make sense to some to start drawing my pension at 52 but my mortgage is crippling me so anything to help reduce it down is something I need to consider, my current interest rate is 2.8%
I would appreciate any feedback/guidance thanks
I understand that there is a requirement to put €63.5k in to an AMRF so I will be left approx €25k.
Can I drawdown all the €25k in one go and pay tax/ prsi/usc on it as I had waived the tax free lump sum when I was made redundant a number of years ago? If so who do I need to do this for me and roughly how much fees or hidden costs I haven't factored in would I be looking at?
Then with the €63.5k I intend to invest in something that will give me maybe a 2-3% return. I understand there is the option to drawdown a max of 4% a year from this, I'm presuming this is on the profit (if any) and that I would need to keep the €63.5k, is this correct? Again is it a broker or should I contact Zurich etc myself.
A few things that may be relevant, I'm on Social Welfare Disability Allowance and due to health reasons it will be the case probably up to government retirement age. I know it probably doesn't make sense to some to start drawing my pension at 52 but my mortgage is crippling me so anything to help reduce it down is something I need to consider, my current interest rate is 2.8%
I would appreciate any feedback/guidance thanks