Getting access to UK pension

[Wiresandmore]

Hi

I have lived in Ireland for ~12 years now. I have around €300K in a UK pension which I have not transferred. I also have about €375K in an Irish pension from employment here.

I know the GBP/EUR rate is all over the place, but if I transferred the UK pension, can I access this at age 55 and how would the tax work?

If I combine it with the Irish pension, can I take 25% (200K) tax free at age 55? And then leave the rest untouched.

The context is that it is 5+ years off but I am trying to do some mortgage paydown scenarios in the event we increase our mortgage shortly.

Thanks for any advice/context.

 

[Steven Barrett]

Hi Wiresandmore

There have been recent changes to the rules in transferring pensions from the UK. Any benefits you transfer from the UK has to go to a QROPS approved plan ie HMRC has to have approved the receiving pension scheme. HMRC has also said that your benefits must stay in the QROPS approved plan for 5 years before you can mature the fund or transfer it to a non QROPS scheme.

Any benefits transferred from the UK can only be access from age 55, no earlier. Tax is under Irish tax law.

If you take 25% tax free, the remainder goes in a A(M)RF. It may remain untouched until age 61, when you have to start drawing down 4% per annum. If you don't draw down 4%, the revenue will take the tax due on that amount anyway.

Or you could leave it in the UK and administer it from here.


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