Clear bank debt with pension--possible?

[Mur2006]

Hi folks,

I currently have a debt with €14,000 with AIB, i also have an AIB-ArkLife pension with €30,000 paid into it, not sure of net value.

Is it possible to use this pension to clear part fo all of this debt?

Thanks

 

[AJC]

Hi folks,

I currently have a debt with €14,000 with AIB, i also have an AIB-ArkLife pension with €30,000 paid into it, not sure of net value.

Is it possible to use this pension to clear part fo all of this debt?

Thanks

Complicated question, but probably NO, if you are at retirement age, and have additional pension entitlements then there might be a yes

 

[ClubMan]

Hi folks,

I currently have a debt with €14,000 with AIB, i also have an AIB-ArkLife pension with €30,000 paid into it, not sure of net value.

Is it possible to use this pension to clear part fo all of this debt?

Thanks

What sort of pension (occupational, personal pension plan/Retirement Annuity Contract, PRSA etc.)? How long has it been in place?

 

[Guest126]

In short, no chance, unless you have been paying to the pension for less than two years AND it is a company pension scheme, AND you are about to leave that company pension scheme.

EVEN then - you would lose right to company contributions that were paid on your behalf AND you would pay 20% in tax on value of your contributions.

Basically - FORGET IT!!

 

[Mur2006]

Thanks folks,

Clubman:- i know its a long shot, personal pension, have it over for around 6 years.

Appreciate any help or advice.

 

[ClubMan]

Clubman:- i know its a long shot, personal pension, have it over for around 6 years.

You can't cash this in except possibly in limited circumstances (e.g. permanent disability preventing you working etc.) so it's not a runner here.

 

[Guest126]

Does anybody agree with me that it could also be cashed in the contract had been in force for less than one year?

Either way, not possible in this instance for the OP.

 

[ClubMan]

Does anybody agree with me that it could also be cashed in the contract had been in force for less than one year?

I didn't think so. On what basis do you believe that RACs less than one year old can be cashed in early? And on what basis (e.g. what tax treatment)?

 

[Guest126]

The insurance company has the right (I do not think that they avail of it so often) to refund the premium - I think that they will only insist on this in the case of a small premium - the contributor would be obliged to return tax relief received I would imagine, the contributor does not have the option to ask for a refund, it is the provider that has option to return the premium.

 

[ClubMan]

Actually that seems to ring a bell alright but I can't remember the details off hand...