TFLS Question

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Kev1964

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Annuity rates may have peaked for Irish buyers. I've noticed recent small reductions with IL and Zurich so I'm thinking of pulling the trigger and buying an annuity now.

I have a timing issue though. I have approx €520k in a buy out bond with Zurich and €36k with IL. Total €556k. I'd like to take the max TFLS of €139k leaving me with €417k to invest. However, IL say that my plan with them doesn't mature until my 60th birthday in January. By then annuity rates may have dropped to an unsatisfactory level.

Trying to think around the problem I calculate that if I retire only the Zurich bond now, I can invest €417k from that leaving €103k as the TFLS from that scheme (less than than the full 25%).

When I turn 60 can I take all of the money in IL to boost my TFLS to what I am entitled to now?
Or will I only be able to take 25% of that €36k (or whatever it is then) forcing me to do something else with the balance?
 
Zurich Life is a Buy-Out Bond. Is Irish Life a Buy-Out Bond also? If so, same employment as Zurich Life BOB? If not, what type of product is Irish Life?
 
Dave Vanian said:
Zurich Life is a Buy-Out Bond. Is Irish Life a Buy-Out Bond also? If so, same employment as Zurich Life BOB? If not, what type of product is Irish Life?
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IL is combination of a PRSA and an Exec pension.

And no they were in relation to a Ltd company I had after the employment that created the Zurich plan.

Edit: Just rang IL they've now advised that only the PRSA is restricted to age 60, although that's the majority of the money with IL.
 
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As Irish Life is a PRSA and it's not related to the same employment as the Zurich Life BOB, then there's no sharing of tax-free lump sums possible. That said, if you're currently retired from all employment, you can tell Irish Life that you want to take early retirement from your PRSA now. You cannot be penalised for taking early retirement on a PRSA.
 
redstar said:
I think you can take 25% of the ZL BOB and 25% of the IL PRSA tax-free.
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You can, or you can take a lump sum from the ZL BOB calculated based on salary and service. But that wasn't @Kev1964's question. He was asking if he could take less from Zurich now and make it up taking more from Irish Life later.
 
Dave Vanian said:
As Irish Life is a PRSA and it's not related to the same employment as the Zurich Life BOB, then there's no sharing of tax-free lump sums possible. That said, if you're currently retired from all employment, you can tell Irish Life that you want to take early retirement from your PRSA now. You cannot be penalised for taking early retirement on a PRSA.
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AAM at work - I read your response back to the agent on the helpline and she referred it higher - The answer that came back was that you are right Dave - Just need P45 from my last employer. Thanks very much for your expert knowledge.
 
Dave Vanian said:
You can, or you can take a lump sum from the ZL BOB calculated based on salary and service. But that wasn't @Kev1964's question. He was asking if he could take less from Zurich now and make it up taking more from Irish Life later.
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Thanks for clarifying Dave. Is the lump sum option in that case based on final salary of the job related to the Zurich BOB (rather than a most recent job)?
 
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