I have a PRB with Zurich Life valued at €250k. Aged 57 and am wondering is there a method of releasing some of the value in a lump sum at present. I am running my own business and could do with an injection of cash into it.
The benefits under your PRB are available from age 50. If your previous pension scheme was a defined contribution scheme you have the option of taking 25% of the fund value as a tax free lump sum and the balance transferred into an ARF/AMRF ( Approved Retirement Fund). You are required to draw down 5% of the ARF each year as income from age 60. You may also be able to get a higher amount of tax free cash and you must buy an annuity with the balance. The amount you can get tax free under this option depends on your particular situation and depends on the length of service and the salary levels. An adviser should run both calculations for you. If the ARF is a better option then focus on what ARF provider/structure is the best value/better option for you. Even after taking 25% in tax free cash you will still have over €187k in the ARF and this is an important valuable personal asset - so we recommend you do your research or get advice to make sure you can make a well informed decision as to what is in your best interests.