The bond at present is worth €71k or so with the 25% Lump sum worth around €17.7k.
I don't want to transfer into my current pension as I want to access a lump sum for personal reasons.
If I take the lump sum it leaves a remainder of €53.6k which I would like to re-invest so it can continue to grow and this is where I get a little confused.
I don't want to commence with a pension payment (not even sure if I can as I'm not retired and won't be for another 15 years)
My options listed then mention that I could take out an ARF if I have a guaranteed pension income of €12,700 or over.
If I don't the first €63,500 must go in an AMRF. It does mention that it mightn't cost the full €63500 to purchase the guaranteed income for life in retirement of €12700 pa.
Am I correct in understanding that the amount it costs to purchase the guaranteed income for life in retirement of €12700 pa would come out of the €71k so reducing the lump sum amount.
Does my other pension in current job to which I'm currently contributing a decent amount into (22%) with the fund currently worth €131.7k have any bearing on this situation ???
Finally does the state pension come into play if at all in affecting my position ???
Apologies for what might seem silly questions but I really appreciate all info/advice.
Thanks for all the help
The State Pension only counts towards the guaranteed specified income threshold when you’re actually receiving it.
To purchase €12,700 of income might cost circa €400,000 so that’s not a runner.
You’ll get 25% out in cash; the balance will move into your AMRF and it can stay invested. You can withdraw 4% of its value each year if you want to. Other than that, it can’t be touched until you reach 75 or have €12,700 of guaranteed specified income.
When you access your other scheme, you’ll get your 25%, the balance will then top up your AMRF to €63,500 and fund an ARF. Mandatory 4% a year from the ARF if age 61 or more but free to withdraw as much as you want unlike the AMRF.
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