prsa /avc convert to loan

D

deco87

Registered User
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423
I am separating. I paid into a PRSA /Avc for last 13 years. I am 53. It will terminate when 55.
The reason I did this was to have funds to pay towards child's further education. In 6 th year at mo.
We have agreed that I pay a lump sum to partner to end marriage.

The difficulty I have is ,,,,this PRSA/AVC is tied to my superannuation and state pension.

I can work till 60. I would prefer not be forced to retire in order to pay partner off and pay
child's education , which would put me in a precarious situation as regards trying to get by financially as I will hold onto house and child with all the ongoing bills.

I would intend to work at something else should this scenario arise.

My query is the PRSA/AVC .....is there any way of using it ..value about 27k as a
"guarantee" or "sell" it at a loss ....to allow me to use it towards the child's further education
bills?
I just don't have any savings whatsoever , being in a position of not having debts I thought
was a good position...this separation could cost 50K ..I just don't know how I will pay for child's education from PRSA/vac which was the plan.

I would be hoping to raise the 50k from gratuity which would be 76/77 K...retire if necessary to do that,,,,,,,
Any advice .....appreciated....


Deco
 
You can't sell your pension to someone else. A bank can't take a pension as a guarantee against a loan either. As it's an AVC plan, you can only access it when you access the benefits from the main scheme.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Will do. I was hoping to try access funds or use that press /AVC some way to cover education expenses ..without having to retire to access it.
I hadn't realized that you needed to retire before it kicks in ...that was my fault ... initially ..I just wanted to utilize some tax relief.
It's a waste really ....as it was a lump sum I wanted not an ARF ...which I understand pays a very minimal amount every month..
You live and learn ...thks for advice tho
 
Deco, you may be confusing ARF and Annuity. When you retire from work, you can withdraw up to 25% of the PRSA to enhance your tax free lump sum from your employer. The balance in the ARF can be withdrawn as necessary but will be taxed as income. Experts on here can advise more precisely.
 
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