Redundancy, combined pensions

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figrolls

Registered User
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Hello,

I am receiving a redundancy payment soon and I need to decide asap about option A or B.

I think I should choose A, but I’d like to double check please


Option A gives me 70K after tax. This option retains the right to tax free lump sum from pension .
I’m not sure if this is regarding my current pension , or all my combined pensions?

Option B gives me 83K after tax.

I have a number of different pension pots as follows:
  1. personal pension Pot of 160K
  2. personal pension Pot of 60K
  3. personal pension Pot of 15K
  4. personal pension Pot of 30K
  5. PRSA Pot of 92K
  6. Previous company pension Pot of 50K
  7. Current company pension Pot of 70K
Total Pension pots 477K

I am 57. All going well I will get a new job, probably contracting, and retire near 60.

So, should I choose A or B?

What are the latest dates for an AVC payment - is is termination date for my current penion scheme and end Oct for any of the other pensions?

Any other general advice please ? :)
 
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Thank you . If I have left it too late, can I make AVC to one of the other personal pensions or the PRSA ? (they are still current, maybe paid up or on a premium holiday)

Or do I need to be employed in order to make a AVC to any pension?
 
If all your present income is from your pensionable employment, you will only get tax relief for payments into the AVC policy associated with the occupational pension, paid in before your redundancy.

You could make payments to your PRSA after ceasing your employment. You could claim tax relief from these payments from any future non pensionable earnings you might achieve.
 
Also, Can anyone guide as to how much of a tax free lump sum I may be avail of when I retire . Apologies in advance for asking re tax free lump at retirement here - I had put this query in a separate post in the Pensions forum but it was deleted by admin saying it was a duplicate post .

When it comes drawing down my pension tax free lump sum(s) at retirement , how does it work ?
As a gude, is it that I am entitled to the greater of
25% lump sum of each pension - so in my case total tax free lump sum of €477K = €119K
or 1.5 times my salary ?
 
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figrolls said:
When it comes drawing down my pension tax free lump sum(s) at retirement , how does it work ?
As a gude, is it that I am entitled to the greater of
25% lump sum of each pension - so in my case total tax free lump sum of €477K = €119K
or 1.5 times my salary ?
Click to expand...
The 1.5 times salary is only applicable to occupational pensions and not others such as personal pension plans.

Lump sums - pensionsauthority

Virtually all pension arrangements allow you to take a tax-free lump sum within certain limits at retirement. Most people avail of this option. You may also be able to take an additional lump sum which is taxable. Different rules apply to the amount of cash you can take out of a pension...
pensionsauthority.ie pensionsauthority.ie
 
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