So I am 65 and have reached my Private Pension Age

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faolteam

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When you reach the pension requirement age for your private pension, what is the normal Choice made on the pension Payment to the Contributor then ?
 
I think your question is "should the private pension be paid by cheque or directly into your bank account." If so, it's usually easier to have the amount paid into your bank account.
 
to be honest that is not the question i asked it was changed everything and not the question i asked, i was just wondering what most people do about there pension when it matures , if someone wants to pm me because obviously i cant ask here its been all deleted
 
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i have two pensions one big one small what do most people do when both of these comes to maturity, thanks
 
If they need the money, they start drawing on them. And if they don’t need the money, they leave them to continue to grow tax-free.

In terms of ARF vs annuity, with the latter such bad value and given that an annuity usually disappears on the second death of a spouse, most people opt for the ARF.
 
At the moment, the vast majority of folk take 25% of each fund as tax-free-cash and invest the remainder in an A(M)RF.

The only caveat on the above might be that one of your maturing pensions has a guaranteed annuity rate (GAR) attaching to it.

If you had a pension fund with a guaranteed annuity rate of (say) 10%, and another without one, Revenue will allow you to take the 25% from the aggregate funds so that you're not putting yourself in a disadvantaged position.

If you had a pension fund with a GAR on €100K and another fund worth €25K, you could take the €25K and €6,250 from the €100K fund and end up with 10% of €93,750 as opposed to 10% of €75K.

Not a huge amount of business like this but it's there and very seldom highlighted.

Gerard

www.prsa.ie
 
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