Redundancy and Early Retirement

[hupourdat]

Hi All,

Can anyone give me a few pointers on pension entitlements after taking up a voluntary redundancy package. This is for an individual with AIB.

If they opt for the redundancy do they have to leave their retirement package in place until they reach the selected retirement age? Or can they opt the pension benefits at any time?

Thanks

 

[wbbs]

All depends whether AIB is offering early retirement in the redundancy package, if they are then the details should be available to them. If they are not then they will have to wait until normal retirement age to access their pension.

A quick google says AIB are offering early retirement from age 50 so if your friends fits that profile and this is accurate then they can apply, but this info should be available to them already? Pension if taken early like that is normally reduced, don't know what AIB's offer is though.

 

[hupourdat]

The individual has been offered a choice of voluntary redundancy or early retirement. I dont have much knowledge in this area.
If he opts for the redundancy package can he subsequently opt for early retirement, giving him access to both packages?

 

[wbbs]

No, they are only going to get one option, there is usually a much reduced lump sum going with the early retirement. Personally depending on their age and financial situation I would prefer the prospect of an ongoing income rather than a lump sum but it does all depend on their own circumstances.