Previous Defined Contribution Pensions

If you previously worked in a company that provided a defined contribution pension, then it is important for you to understand all of the options available to you. Please see below.

Here Are Your Options:

Option 1: Leave your pension with your previous employer, this is known as deferred benefit

  •  Your previous employer will continue to invest your pension in funds chosen by the scheme trustee.
  • You access your pension at the normal retirement age (this is usually between ages 60 & 70).
  • If you die prior to your NRA, there can be complications in getting your money paid to your estate.

Option 2: Transfer your total pension fund value into a bond in your own name

  • This option allows you to receive 25% of the total pension value as a tax free lump sum from age 50.
  • The remaining 75% can then be invested in two ways.
    • invested in another pension vehicle (ARF) and drawn down when needed.
    • used to buy an income for the remainder of your life (Annuity).

The benefits of this option are as follows:

  1. You get access to this money from age 50 (instead of the NRA of your ex employer which is usually 60,65).
  2. You have full control of your investment choice.
  3. The decisions made by your ex employers in relation to their pension fund is irrelevant.
    1. Ex: if they decide to change NRA or if the investment choice of the company scheme performs badly over time.
    2. As your pension money is now in a bond in your own name, it has no effect on your fund.
  4. In the event of death, your family can have early access to all of the pension money.

If you would like to find out more information to see where your deferred pension is and how it is performing, please click on the Contact Us button and fill in the form and we will help you order your ‘Statement of Benefits’ from your previous employer and go through in detail the options available to you.

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Our Team:

Diarmaid Blake

Managing Director

Lorna Egan

Executive Director

Get in touch today and we'll follow up to explore your options