Pre planning for cashing in PRB at 50

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PaddyW

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I have an old company pension, still invested in the company fund. Current value c. 165k. I would like to take this in its entirety at 50 (Currently 42. I realise it will be taxed at my 40% tax rate at that stage, after TFLS)
Are there any steps I should be taking now to make it easier to cash this in, in the future? Will there be any time limits on how long I need to be holding the PRB? Will I need a specialist to get this done for me or is it something one could do themselves?

Thanks in advance for any tips and pointers.
 
I won't dwell on whether or not it's a good idea to do this while still working. You're already aware of the big tax hit you'll take on 75% of the fund by doing it this way. It's generally something I advise against, but if you have your reasons, you have your reasons.

No great need to transfer to a PRB to do this. The options at retirement are the same in the main scheme as they are on any PRB that you transfer into. Sp unless you've some other reason you want to transfer into a PRB, e.g. lower charges, funds you prefer etc., you don't need to go into a PRB. You can just request early retirement from the main scheme at 50.
 
Thank you, Liam. So can I just request early retirement and then cash in the fund straight away? That's great, I was under the impression I needed a PRB. Thanks for clarifying that for me.
 
I was thinking about this last night. (I really need to get out more...) I'm assuming that the scheme is a straightforward Defined Contribution scheme, as distinct from a Defined Benefit one? My answer might be different if it's a DB scheme.
 
Make sure you have salary records from the period of employment. The provider will have to do funding checks to ensure your pension isn't overfunded. They will need proof of earnings. I advise clients to submit their P60/ Income summary now so the provider has it on file. I've lost count of the amount of times maturing a pension has been delayed with people having to request proof of earnings from the revenue.
 
You can't just take the full amount as such if you are trying to access its cash value. You need to set aside most of it into ARF and AMRF funds, unless that has changed?
 
Steven Barrett said:
Make sure you have salary records from the period of employment. The provider will have to do funding checks to ensure your pension isn't overfunded. They will need proof of earnings. I advise clients to submit their P60/ Income summary now so the provider has it on file. I've lost count of the amount of times maturing a pension has been delayed with people having to request proof of earnings from the revenue.
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Thanks Steven
 
Steven Barrett said:
Make sure you have salary records from the period of employment. The provider will have to do funding checks to ensure your pension isn't overfunded. They will need proof of earnings. I advise clients to submit their P60/ Income summary now so the provider has it on file. I've lost count of the amount of times maturing a pension has been delayed with people having to request proof of earnings from the revenue.
Click to expand...
Thankfully, I was wise(?!) enough to have all my P21's done back as far as 2005 so I have them archived on Revenue website. I will save a copy for my own records as well. Thanks again for the advice.
 
LDFerguson said:
I was thinking about this last night. (I really need to get out more...) I'm assuming that the scheme is a straightforward Defined Contribution scheme, as distinct from a Defined Benefit one? My answer might be different if it's a DB scheme.
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Hi Liam, yes it was a DC scheme. I know the feeling of needing to get out more!
 
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