Options to access PRSA

carmel65

Registered User
Messages
38
I have scanned this forum (many thanks) and reviewed as much info on line as I can and I have assembled the following information, I would greatly appreciate it, if anyone here can add anything.

My husband has a PRSA that he (not his employer) put money in to.
He is now 57 and not working, so we are looking at options to access this money.

As I understand it, the once off 30% withdrawal does not apply as it is not an occupational pension scheme and not a AVC PRSA.

I believe that he can 'retire' now and get a tax free lump sum of 25% of the fund. We can then buy an annuity with balance or put it into and AMRF.

Assuming we put the balance in the AMRF, we can take out 4% per annum.

If at some point in the future he gets a guaranteed income of €12700 pa (e.g. he draws down the state pension at age 67), he will then be able to transfer the AMRF into an ARF and drawdown money as he wishes.

If not, the money is tied up until he is aged 75.

I will have an guaranteed income in excess of €12700 from a previous employer when I reach 60, but my reading of the revenue information is that whilst the income is taxed jointly, my husband must have the €12700 in his own name and my income will not count in this regard. Have I read this correctly?

I also see that there may be changes to this area, if we go ahead now, and the changes create a more favorable position with regard to the AMRF might we still be able to avail of them?

Are there any other considerations or options I have missed?

many thanks
 
With personal PRSA's, the earliest he can access the money is age 60. It is employer PRSA schemes that can access the fund from age 50.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thanks Steven, I have been on to the pensions board and Zurich insurances and they hav both told me that it is possible to access this PRSA early.
 
On th basis of an early retirement, we are talking to them at the moment and I will get back to you with further details
 
Hi Carmel

If your husband can access his PRSA in his 50's (are you sure it wasn't an employer PRSA Scheme?), then all you said is correct.

He can also just take out the 25% tax free lump sum and leave the remainder in the PRSA as a vested PRSA


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
With personal PRSA's, the earliest he can access the money is age 60. It is employer PRSA schemes that can access the fund from age 50.

I had a personal PRSA that my employer never contributed to and I have been told by ITC (my PRSA provider) and my FP that I can if I wish access it at 50 on the basis of early retirement.
 
Just looked up the Pensions Authority booklet and noticed it said "if you retire from employment" as the definition for accessing benefits from 50 onwards. This was different to what I had understood it to be. I stand corrected.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Just looked up the Pensions Authority booklet and noticed it said "if you retire from employment" as the definition for accessing benefits from 50 onwards. This was different to what I had understood it to be. I stand corrected.

www.revenue.ie/en/about/foi/s16/pensions/chapter-24.pdf
Page 5 here states that you need to be 60 except in certain circumstances. And Revenue decide the rules.
I think your original idea was correct Steven, and it was always my understanding too.

And see Q30 here from revenue FAQs:
http://www.askaboutmoney.com/threads/prsa-faq-from-revenue.134038/
 
Last edited:
I read that too Joe when I was looking into it. The Pensions Authority are the ones who authorise all PRSA's, so they have a lot of weight behind them too.

I've put the question on a pensions technical group that I am part of on LinkedIn. I'll post their response.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Coming back on this, the answer that I got is:

The PRSA legislation (s787K(2)(b) TCA 1997) allows access from 50 onwards for an employee on 'retirement'.

So if the PRSA is related to a current employment (e.g. employee and/or employer contributions were paid to this PRSA related to this employment) the individual can get access to the PRSA if they can produce a P45 from that employer at any time from 50 onwards.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thanks Steven
The company my husband worked for went into liquidation, so he definitely has the correct paperwork.