Looking for some pension investment advice

K

ksoft123

New Member
Messages
2
Hi All,

I am looking for some advice on my pension investments.

Personal details:
- Age 55, plan to retire at 65
- will qualify for 92% of the state pension
- spouse has no pension, will qualify for 70% of state pension
- ARF at retirement

Pension investments:

1. Pension pot A:
- from previous employment
- 650k
- no more contributions paid in
- availed of redundancy payment so no tax free lump sum
- fully in passive equity fund (self managed choice)

2. Pension pot B:
- 500k
- 58k was paid into the pot for 2024, expect this to continue in future years
- in "adventurous" lifestyling, currently 90% passive equities fund and 10% managed high growth fund, will slide all the way to 75% high growth fund and 25% cash in the next 10 years

3. One investment property, rented out, about 400k in value, no mortgage.

My approach after some thinking:

1. Leave everything as is for now.
- state pensions and rental income will provide a base level income
- pot B lifestyles to 75% high growth fund and 25% cash in the next 10 years, will use this first for an ARF at retirement
- will use pot A later in retirement so can stay fully in equities for now

2. Leave pot B in the lifestyle strategy as is. Shadow the pot B lifestyling with pot A as well with manual switches (similar funds are available with the pot A fund manager). The pot A lifestyling is very conservative so I am ignoring that.

I am liking the first approach more.

I'd appreciate any thoughts about this, am I doing this wrong, overlooking anything obvious or do things differently?

Thanks
 
Is the rental property in the sole name of the spouse? Save tax and trigger class S PRSI to keep up contributory state pension credits.
 
Marc said:
Is the rental property in the sole name of the spouse? Save tax and trigger class S PRSI to keep up contributory state pension credits.
Click to expand...
The rental property is in both our names, so rental income is currently declared half and half. She pays class S PRSI currently on her share of the rental income. The 70% state pension for her includes class S PRSI going all the way to her retirement.
 
Might be worth costing transfer into their sole name. If you are paying 8% USC on your income there could be some decent tax savings available.

Also consider paying for a certificate of benefit comparison to take out pension pot A into a PRSA which would re-establish the lump sum as the waiver falls away on transfer.

That would also facilitate a phased retirement approach which I set out here https://www.linkedin.com/posts/marc...3-cSuJ?utm_source=share&utm_medium=member_ios
 
Last edited:
As Marc said above you should still be able to access tax free cash by transferring into a PRSA.
 
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