What age can you access 25% taxfree pension lump sum?

N

Ndiddy

Registered User
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Hi,
Was just wondering what the earliest was that you can access the 25% tax free pension lump sum.
Thanks
 
It depends on the type of pension plan and your employment circumstances.

  • Personal Pension: Age 60.
  • Occupational Pension Scheme or Buy-Out Bond: Age 50, if you are no longer an employee of the company and have no shareholding.
  • PRSA (Self-employed): Age 60.
  • PRSA: (Employee): Age 50, if you are no longer an employee of the company and have no shareholding.
Earlier retirement is allowable on any of the above in a case of serious ill-health.
 
Thanks LD.
So for a married couple with a DC plan each, if they quit work at 50, have no shareholding, they can access up to 400k tax free? Does this have to be all at once?
 
Ndiddy said:
Thanks LD.
So for a married couple with a DC plan each, if they quit work at 50, have no shareholding, they can access up to 400k tax free? Does this have to be all at once?
Click to expand...

Yes they can. If they have just one DC plan each then they each can only take the lump sum at one time. But if they don't need the benefits, they could both finish working at the same time and one of them doesn't draw down their benefits immediately on doing so.
 
What if one spouse has 1 DC plan and the other has 2 DC plans(old and current employer)? Can the spouse choose which DC plan to take the lump sum from?
 
Watching this thread with interest as I have been offered an ETV by my former employers which would be transferred into a Retirement Bond.

If I take this and max out the 25% lump sum at 50 or shortly afterwards (which wouldn't be up to revenue max thresholds) Can I take a further 25% lump sum on actual retirement from my current scheme up to the balance of the revenue maximum?

I intend working till 60 but the 25% lump sum in 50s may be attractive as kids will be in college / possibly buying house etc.

Thanks
 
Ndiddy said:
What if one spouse has 1 DC plan and the other has 2 DC plans(old and current employer)? Can the spouse choose which DC plan to take the lump sum from?
Click to expand...

Yes - if the two DC plans relate to different employments, there's no requirement to take the benefits from both at the same time.
 
MichaelT said:
Watching this thread with interest as I have been offered an ETV by my former employers which would be transferred into a Retirement Bond.

If I take this and max out the 25% lump sum at 50 or shortly afterwards (which wouldn't be up to revenue max thresholds) Can I take a further 25% lump sum on actual retirement from my current scheme up to the balance of the revenue maximum?

I intend working till 60 but the 25% lump sum in 50s may be attractive as kids will be in college / possibly buying house etc.

Thanks
Click to expand...

Yes you can, and you can put the other 75% of the fund into an AMRF and ARF. You don't have to start drawing an income from the ARF until the year you turn 61.

Regards,

Liam
http://ferga.com
 
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