Early draw down of a Pension

F

flid

Registered User
Messages
16
Hello there,
I have a question regarding drawing down a lump sum from a corporate pension fund at age 50.

Basically I have a pension fund that was linked to corporate job I had in the late 90s. The fund is worth 50k.
I was under the impression that I could draw down a lump sum once I turned 50 years of age.
I assumed the lump sum I could draw down would be close to the 50k.
I have no interest in keeping the fund going and I am not interested in a monthly income from it.
Once I turned 50 I was told I could only draw down approx 8k only.
I have been trying to talk to someone at the pension company but they are not available etc.

Is this correct? Is there something legal that stops me drawing the whole sum down?

Thanks.
 
The fact that the fund might be valued at €50k does not mean that the full amount can be drawn down as a lump sum at age 50. This is a Pension fund. Whilst some can be drawn down as a lump sum, not necessarily all. The lump sum amount is typically 25%, but an alternative calculation based on service and salary can possibly give a higher figure.
I think you need to persist with the Pension company to run the numbers.
 
Revenue has also restricted the maximum benefits payable if you draw down your pension early, so you won't get the same level of lump sum than if you worked to normal retirement age.

The 25% of fund value or waiting may be better options

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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