Have you a pension from a previous employment?
Once you cease pensionable employment, your ex-employers HR/Pensions department will usually send you your ‘Leaving Service Options’ document to review. This document outlines the various options available to you in relation to your pension. You are encouraged to choose one of these options and send back the paperwork to your employer who will then process your request.The 3 options that are offered are as follows;
-
- Leave this pension where it is…..in your ex-employers pension fund.
- Transfer the pension fund to your new employers pension fund.
- Transfer it into either a PRSA or a Personal Retirement Bond with one of the main pension providers in Ireland in order to have full control and early access options to your fund.
The question is, what option did you choose and was this the best option available? There are pros and cons to each option but it is important to fully understand these options in detail to make an informed decision.
Early access options and the tax implications on both your pension on retirement and on death should all be considered from all options before any decision is made.
If you are unsure what options you chose when you left your previous employment or didn’t make a decision for whatever reason, your pension is probably still in your ex-employer’s company pension scheme.
If you would like clarification or more information on the options still available to you (even if you have already transferred your pension), you can always book a free call with one of our highly experienced and qualified pension specialists and they would be happy to answer any of your queries.
All our Certified Financial Planners, Qualified Financial Advisors and Tax Advisors have vast experience in all Pensions related queries and advise.
Below is a list of the main pension related queries we help our clients with;
-
- Requesting transfer values from previous employers
- Tracing and locating old pensions
- Advising on the most tax-efficient option available in relation to pension transfers:
- Early access options
- How to maximize your tax-free lump sums receivable,
- Receiving pension income post-retirement and taxes payable
- Death benefit analysis – pre and post-retirement
- Future Cashflow analysis in a report format helping clients see their financial future with each pension transfer option.
- Assist in choosing the best pension provider for any pension transfer in relation to
- Fees and charges
- The best investment fund performance
- The customer service support
- Choosing the best investment strategy that suits your requirements
- Ongoing Management of client’s pensions – pre and post retirement
Types of pensions and the option available for each one
Below is a more detailed analysis of Occupation/company pensions and the options available to you in relation to any previous pensions.
Types of pensions and the option available for each one
In general, there are two specific types of Occupational/company pensions
- Defined Benefit Pensions
- Defined Contribution Pensions
On occasions, some pensions are a part Defined Benefit and part Defined Contribution (hybrid pension).
It is very important to understand what type of pension you have as the options differ slightly for each type.
Below is a detailed analysis of both defined benefit and defined contribution pensions? Each are analysed on the following
-
- Brief background of how these pensions are calculated
- The various leaving service options offered to ex-employees
- The tax implications of each leaving service option (pre and post retirement)
- The death benefit of each leaving service option (pre and post retirement)
- The advantages and disadvantages of each leaving service option.
