Cashing in Whole of Small AVC

C

checktwice

Registered User
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Hi,
Does anyone now if this is possible?
I have just turned 50, I have a small AVC and have been told by the provider I can access 25%.
I would ideally like to cash in the whole policy as I am looking at going back to college for a course and being self employed would prefer not to have to take on client work while studying.
I know there are tax implications, however increased earnings potential from the course would far outweigh the short term loss.
Many thanks in advance.
 
How small is small? There is a provision for where the value of all the individual’s pension funds after payment of the retirement lump sum is less than €20,000. In this case, they can take the balance of the fund as a once off taxable payment subject to marginal rate income tax and the universal social charge.
 
If your fund is really an AVC(Additional Voluntary Contribution) then it must be attached to a main scheme. Therefore you cannot access the AVC until your mature the main scheme.
If however it is a PRSA or a Individual Director Pension then you can access after age 50 and depending on the size, the trivial rules (as above) might apply.
If your fund is a Personal Pension then you can not access before age 60.
Can you clarify?
 
Thanks for all the replies,
Yes pension/buy out bond value is less than 20K
@ Conan My understanding ( could be wrong) of the current situation, it was originally an AVC, as the company changed ownership & the AVC scheme was wound up. I left the company a good while ago and only started looking into it recently, from a brief discussion with the company managing it , I was told I could access some (25%) & thought given size, could be put to better use. Now that was a phone conversation and I am waiting on written details.
 
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