Can You Have Too Much Pension?

50thbirthday said:
Are you sure the PRSA (attached to current employment / company) cannot be retired and take the 200K TFLS and transferred into a vested PRSA? and keep working within the company?
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It is possible but you need two employments
 
@50thbirthday @Designjet
I don't understand why you keep asking questions with little bits of information, missing context, and 2 user IDs.
You will get misleading answers not correct for your circumstances.

If I understand correctly, you are a company director, the company is still trading, you're 50, and one of the pensions relates to that employment?

You've 800k worth of pension. Either post all the details, or go get proper advice. It's too much money to be guessing what your circumstances are.
 
Marc said:
Why not move everything into a PRSA and phase retirement?

A PRSA can be split. So you can have both pre and post retirement “ pots”

Say you get the fund up to €1m

You can retire say €100k
From this pot you can take 25% lump sum

The first €200k is free of tax so this is a tax free lump sum.

You then have €75,000 in a vested or retired PRSA and €900k untouched.

You can draw income from the vested part at any rate you want (subject to minimum distributions at 61 etc)

So you might choose to take an income to make use of exemptions and reliefs. Say €25kpa

So this would last about 3 years.

You then repeat the process

Each chunk of pension has its own lump sum allowance of 25%.

The untouched pension part grows free from personal taxes and is treated as a return of fund on death whereas a spouse or civil partner will take over the vested part on death.

This is just a more flexible and tax efficient way of planning. Rarely see it discussed

Marc Westlake CFP, TEP, APFS, QFA, EFP
Chartered, Certified and European Financial Planner
Registered Trust & Estate Practitioner
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I have a question based on this.
If you have a Buy Out Bond of, say €300k, from an old employment. Can you transfer part of it like the €100k in Marc’s example above into an ARF and take that approach but crucially leave the remaining €200k in the BOB.

Or, are you not allowed to split a BOB?

Thanks

g
 
I think that you can split the occupational scheme transfer value into multiple BOBs at the time of transfer but not subsequent to that.
 
ClubMan said:
I think that you can split the occupational scheme transfer value into multiple BOBs at the time of transfer but not subsequent to that.
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You’d need to transfer the BOB back up to an occupational scheme and then the occupational scheme out to a PRSA which would require a (pointless) certificate of benefit comparison
 
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