Vested PRSA Disbursement policy/procedures

M

Minnie

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Hi I would love to hear from others here regarding drawing down funds from a vested PRSA, I have made 3-4 requests over the last 3 to 4 years and it can take 3/4 plus weeks to receive the monies into my bank account. The monies are divested immediately upon request, what is the procedure after that as I find it hard to believe that in this day and age that it can take so long to process. I'm not expecting a 24 hour turnaround and I do appreciate that the monies have to go through a payroll system for tax, PRSI etc. Any enlightenment would be gratefully appreciated.
 
Who are you dealing with?
I drew down some of my Standard Life PRSA last year via my broker. It took a few weeks, maybe a month, to get the tax free lump sum but thereafter the regular payments came through monthly.
 
I'm not drawing down on a monthly basis, I send in a request when I need to release some monies - I'd rather not say which company as I have a complaint in process with them at the moment.
 
Minnie said:
I'm not drawing down on a monthly basis, I send in a request when I need to release some monies
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Well, I did both. Split €40K off into a separate policy, took €10K tax free lump sum, and am taking the rest in monthly payments since late last year. I wanted use up my tax credits in 2024 and only had a small amount of other income earlier in the year. As I said it took a few weeks to a month to get this done and the money out.
 
Thanks for your feedback, in this day and age you would think that it should be more streamlined. Gone are the days of the abacus and pigeon post!!!
 
In my case there was the additional step of splitting €40K off a larger pension into a separate contract so that may have added to the time needed. And there was some form filling and shuffling between me/broker/Standard Life. A few weeks latency didn't seem too bad to me and didn't inconvenience me. Oh, and I was doing this at a bad time of the year for the broker and SL - smack bang in the middle of the October/November end of year self-assessment and late backdated pension contributions season!
 
Thanks Fortune, not looking for a daily run but a more transparent streamlined approach. Also where are funds sitting as they are divested immediately but not paid out for weeks? Would love to learn more about the process from anyone working in this area of pensions.
 
Minnie said:
Also where are funds sitting as they are divested immediately but not paid out for weeks?
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Why not ask your pension provider or broker if applicable?

In my case I moved the funds from my usual all equity index tracking fund to a cash fund so that I locked in the value of what I'd be taking over the next few months. The cash fund earned a little interest in the meantime as it happens.

Again, I personally don't see that a delay of a few weeks to process things and get access to funds seems that unreasonable or onerous.
 
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