Pension Question: Options when leaving occupational scheme

Hi Guys,

I previously worked for Vodafone Ireland and paid a pension contribution since joining in 1999 - I left a couple of months ago and now have received a letter giving me two options.

1. transfer my pension to a new pension account

2. Hold pension until I retire no more money can be added to the fund and I will receive x amound (small amount) lump sum and also 200 euro per year after that.

Trouble is my new employer dosnt have a pension fund that I can avail of.

If I was to open a prsa would that suffice for option 1?


tks

neonitrix

You are unlikely to be able to be able to move your money into a PRSA - there are legal restrictions which in practice mean that either you won't be able to or it will cost a lot in fees. However, you would be able to switch into a 'buy-out' bond, wgich can be bought from an insurance company. Keep an eye on charges, though they are often quite competitive.

You have a third option, leave the money where it is. You don't have to move your money, and if you do, you may end up paying more in charges.

d

Pension Control issue

If you want control over your assets and cannot move it to a new scheme, move it to a buy out bond and gain complete control of the assets. You cannot add to a Buy out Bond but at least you can get used to managing your retirement assets more closely.

If you leave them paid up in the scheme the assets will still be safe however the annual managment charge is still applicable.......

The choice is yours......... so to the risk .......

You are actually able to transfer to a PRSA providing that the current value of your fund is less than €4,000. There is also no major complications or high charges (in fact they may be less)

If your fund is greater than €4,000 you can transfer to a buy out bond but you should also set up a PRSA for any future contributions you make