Redundancy Question

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bigjoe_dub

Registered User
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Have redundancy coming up in December.
over 25 years service.
am 56.
getting statutory and a decent enough Ex gratia payment.

the one question I am stuck at is do i want a lump sum payment now of 200K or do i want to wait and get it when I retire. ( I know if I wait til I retire I pay more tax on the redundancy payments now.)

what is people opinions? my gut is saying wait until I retire to get it in the hope they may increase the 200k limit.
i will be getting general overall financial advice but just wanted the wisdom of AAM as a second opinion.
 
Have your employer given you the 2 options, tax exempt and taxed?

Secondly, what is the potential tax-free sum you can take from your pension pot?

Thirdly, do you have an immediate need right now for more money or can you wait until you retire?
 
Believe there is also a loop hole currently in place that allows you "waive your right to a pension lump sum" on redundancy, avail of the larger redundancy tax break, then when redundant transfer your occupational pension to a PRSA and take the 200K tax free lump sum when you retire.
 
I'd take the tax free cahs now, who knows what changes there maybe in the future and i believe the loophole is still alive and well
 
thedaddyman said:
Have your employer given you the 2 options, tax exempt and taxed?

Secondly, what is the potential tax-free sum you can take from your pension pot?

Thirdly, do you have an immediate need right now for more money or can you wait until you retire?
Click to expand...
seems to be 2 options.
Waive pension lump sum or Retain right to a pension lump sum and then each of these 2 have then 3 options.

Basic Exemption
Increased Exemption
SCSB

heads melting tying to get me head around these.

think 200K is max from pension re paying no tax.

can wait until I retire
 
thanks for the replies peeps. appreciated. surprised at the bird in the had slant. :) deffo food for thought.
 
What if the redundancy amount is less then €200K? Do you keep the balance for when your retire?
 
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