I am interested in some thoughts on whether to go with the higher option for a redundancy package and waive my right to a tax free lump sum from my pension
The difference between the 2 options is about 40k
I am being advised that I should go with the higher option, then transfer my pension to a PRSA, so I can still avail of the tax free lump sum via the loophole.
I will be 60 in 10 years and would like to be retire at 60.
My current pension value is about 400K. I also have 2 pensions from previous roles which are currently valued at 125K
When I look at the fees for the PRSA (about 1%) v’s the fees for my current pension scheme (about 0.4%), I calculate:
I have been told by my current pension provider that I can leave my funds in the pension and move to a PRSA at a later date.
So I am thinking I could take the higher option, and move to a PRSA in a couple of years to reduce the fees I would pay. Does this seem like a good option?
Has anyone experience of moving to a PRSA to take advantage of the loophole?
My original thoughts were go with the lower option and keep my right to the tax free lump sum, but this loophole and moving to a PRSA has my head is melted trying to decide what to do.
The difference between the 2 options is about 40k
I am being advised that I should go with the higher option, then transfer my pension to a PRSA, so I can still avail of the tax free lump sum via the loophole.
I will be 60 in 10 years and would like to be retire at 60.
My current pension value is about 400K. I also have 2 pensions from previous roles which are currently valued at 125K
When I look at the fees for the PRSA (about 1%) v’s the fees for my current pension scheme (about 0.4%), I calculate:
- The PRSA would cost me 40K over 10 years
- My current pension will cost me 16K over 10 years
I have been told by my current pension provider that I can leave my funds in the pension and move to a PRSA at a later date.
So I am thinking I could take the higher option, and move to a PRSA in a couple of years to reduce the fees I would pay. Does this seem like a good option?
Has anyone experience of moving to a PRSA to take advantage of the loophole?
My original thoughts were go with the lower option and keep my right to the tax free lump sum, but this loophole and moving to a PRSA has my head is melted trying to decide what to do.