Where to put savings

Steven Barrett said:

When work pensions are being set up, a "normal retirement age" must be given. This can be anything from age 60 to 70. It does not mean you cannot access the money before that age. In the case of pensions from old employers, you can access the pension from age 50.

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Just wondering - I have a deferred DB pension where I worked for the company for 7 years. They tell me I can't draw it down early (e.g. 60 instead of 65) because I was there less than 10 years. So are you saying people can access from 50 by law or does it depend on the pension scheme? Thanks.

Kerry538 said:

That would be brilliant. I will get on that after dialysis today. Thank you so much

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Just to add, it would be worthwhile exploring the range of welfare benefits, some of which are based on your previous PRSI history. This could buy you some breathing space to organise your affairs efficiently. I believe CI will guide you through the process directly if you require it.

assa99 said:

Just wondering - I have a deferred DB pension where I worked for the company for 7 years. They tell me I can't draw it down early (e.g. 60 instead of 65) because I was there less than 10 years. So are you saying people can access from 50 by law or does it depend on the pension scheme? Thanks.

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Any access to a company pension before the normal retirement age is subject to the trustees approval. Defined contribution pension are always allowed as there is no cost to the scheme, the money is just sitting there.

With defined benefit schemes, the scheme may be in deficit and the scheme is meeting the cost of the payout and assuming all risks. While they will actuarially reduce the payout they are still taking a risk, so may refuse to pay out early.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Steven Barrett said:

Any access to a company pension before the normal retirement age is subject to the trustees approval. Defined contribution pension are always allowed as there is no cost to the scheme, the money is just sitting there.

With defined benefit schemes, the scheme may be in deficit and the scheme is meeting the cost of the payout and assuming all risks. While they will actuarially reduce the payout they are still taking a risk, so may refuse to pay out early...

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Thanks Steven Barrett - that makes sense.