Facing redundancy can feel overwhelming, especially when you’re unsure what happens to your pension and long-term financial security. In Ireland, redundancy doesn’t just affect your immediate income — it can have lasting implications on your retirement plans if not handled correctly.
At Money Maximising Advisors Limited, we specialise in helping individuals across Dublin, Galway, and Ireland make informed, confident decisions about their redundancy pension, ensuring your hard-earned savings continue working for you, even after unexpected career changes.
This in-depth guide explains everything you need to know about pension when made redundant, your options, tax considerations, and how expert advice can make a significant difference.
What Is a Redundancy Pension?
A redundancy pension refers to the pension benefits and options available to you when your employment ends due to redundancy. While redundancy payments are separate, your pension pot often represents one of your largest financial assets — and mismanaging it can cost you thousands over time.
If you’re navigating pension after redundancy, understanding how your pension scheme works is essential before making any decisions.
Pension When Made Redundant: What Are Your Options?
When you’re made redundant in Ireland, your pension options generally depend on the type of pension scheme you’re in:
Defined Contribution (DC) Pension
- Your pension pot belongs to you
- You can transfer it to a Personal Retirement Bond (PRB) or new employer scheme
- Investment choices and growth potential remain flexible
Defined Benefit (DB) Pension
- Benefits are based on salary and years of service
- Options may include preserved benefits or a transfer value
- Professional advice is strongly recommended
Making the wrong decision at this stage could impact your redundancy before retirement plans significantly.
Learn more about your rights and entitlements on our Redundancy pension advice page.
Redundancy Over 55 Pension: Special Considerations
If you’re aged 55 or over, redundancy can create both opportunities and risks. Under Irish pension rules, you may be eligible to access certain pension benefits earlier than expected.
Key points to consider:
- Potential early access to pension funds
- Tax implications on lump sums
- Risk of depleting retirement savings too soon
A redundancy over 55 pension strategy must balance short-term needs with long-term retirement income — expert planning is crucial.
Pension After Redundancy: Should You Transfer or Leave It?
One of the biggest decisions you’ll face is what to do with your pension pot after redundancy.
Common options include:
- Leaving it in the existing scheme
- Transferring to a Personal Retirement Bond (PRB)
- Moving it into a new employer’s pension
- Consolidating multiple pensions
Each option has different tax, investment, and flexibility implications. That’s why tailored guidance from Money Maximising Advisors Limited can help you avoid costly mistakes.
Redundancy Before Retirement: Planning the Next Chapter
If redundancy happens close to retirement, your decisions carry even greater weight. Drawing pension funds too early or selecting unsuitable investment strategies could reduce your income later in life.
When planning for redundancy before retirement, consider:
- How long your pension needs to last
- Inflation and cost of living in Ireland
- State pension integration
- Sustainable withdrawal strategies
Our advisers work closely with clients in Dublin and Galway to build resilient retirement plans after redundancy.
Take Action Today
If you’re unsure about your next step, now is the right time to act.
Enquire now to get personalised redundancy pension advice
Book now to secure a confidential consultation with an experienced adviser
Related Redundancy Advice Resources
We also recommend reading these expert guides to deepen your understanding:
- Step-by-Step Redundancy Advice Ireland for Employers
- Redundancy in Ireland: Implications and Entitlement
- Understanding Redundancy Payment Options in Ireland
- What is the Average Redundancy Package in Ireland?
- Difference Between Redundancy and Termination
Tax Implications of Redundancy Pensions in Ireland
While statutory redundancy payments are tax-free up to certain limits, pension-related decisions may have tax consequences.
Key considerations:
- Tax-free lump sum thresholds
- Income tax on pension withdrawals
- Long-term tax efficiency of PRBs vs ARFs
Proper planning ensures you keep more of your money working for your future.
Why Choose Money Maximising Advisors Limited?
At Money Maximising Advisors Limited, we pride ourselves on offering clear, unbiased, and expert financial guidance tailored to real Irish families and professionals.
✔ Independent financial advice
✔ Local expertise in Dublin & Galway
✔ Transparent, client-focused planning
✔ Proven experience in redundancy pension solutions
Our mission is simple: help you maximise your money, even during life’s unexpected changes.
Frequently Asked Questions (FAQs)
1. How to calculate redundancy pension in Ireland?
Your redundancy pension depends on your pension type, years of service, contributions, and investment growth. A professional review ensures accurate calculations.
2. How to apply for redundancy pension in Ireland?
You don’t apply for a redundancy pension directly — instead, you choose how to manage or transfer your existing pension benefits after redundancy.
3. Voluntary redundancy pension in Ireland – is it different?
Yes. Voluntary redundancy packages may offer enhanced pension benefits, but the pension options remain similar and still require careful planning.
4. What happens to my pension if I get made redundant?
Your pension remains yours. You can preserve it, transfer it, or restructure it depending on your scheme and financial goals.
5. How much is a redundancy payout usually?
Statutory redundancy is typically two weeks’ pay per year of service plus one additional week, subject to weekly pay caps.
6. What is the maximum redundancy pay in Ireland?
The statutory redundancy pay cap is based on a maximum weekly wage limit set by Irish law, though employers may offer enhanced packages.
Conclusion: Secure Your Future with Expert Redundancy Pension Advice
Redundancy can feel like a setback, but with the right advice, it can also be a turning point toward smarter financial planning. Your redundancy pension decisions will shape your retirement, lifestyle, and long-term security.
At Money Maximising Advisors Limited, we help you navigate redundancy with clarity, confidence, and control.
Contact Us today to discuss your situation
Book an Appointment for expert redundancy pension guidance tailored to your future
