Early retirement and drawing down DC pension.

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Pinky22

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My spouse wants to retire at age 55. We have savings that will last a number of years and then can draw down a defined contribution pension. However, he also has a 30k DC pension. Would it be a good idea or even possible to draw this down from the age of 55 at a rate of 5k per year in order to maintain prsi contributions? Thank you
 
Probably would make sense, subject to his DC occupational pension scheme rules allowing it. A more definite answer would need an understanding of the scheme rules and his Social Insurance Contribution Record. There are other possibilities such as claiming credits or paying voluntary contributions, but again assessing these would require more information and his age may work against him. Lastly, retiring and taking his pension before age 60 may limit his options to take up work should he want to do so.
 
Pinky22 said:
at a rate of 5k per year in order to maintain prsi contributions?
Click to expand...
For what specific purpose?
Towards the State Pension (Contributory)? Is he short of the full 2080?
Torards Treatment Benefit?
Something else?

I'm recently doing something similar myself in my late 50s.
Taking just enough from my pensions to use up my tax credits and maintain my PRSI contrbutions (I'm a few years short of the full 2080).
 
If the rules of his pension scheme allow retirement at age 55 he could start to draw it down. If he sets up an ARF and draws down 5000 euro per year he will maintain 52 class S contributions per year.

Provided he has a minimum of 520 full rate paid Prsi contributions, credits would be of equal value to class S contributions for contributory pension qualification.

He should claim Jobseekers Benefit and continue to sign on for credits. This will maintain his Prsi record. It will also keep the option for qualifying for Benefit Payment 65 open. Being retired doesn't necessarily disqualify him for Jobseekers Benefit. He can be available for and seeking work while in retirement from his current employment

He is allowed to claim Jobseekers credits and pay class S Prsi in any particular year.

He would still be free to take up other employment while retired from his present employment.
 
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