Frequently Asked Questions
Can I access my pension before the retirement age?
Yes, provided you meet a certain criteria, our occupational or defined benefit is paid up and you are no longer in that occupation. Early access is possible, typically after age 50 or in cases of ill-health.
How much of my pension can I withdraw early?
The first 25% of your pension can be taken as a lump sum, up to €200,000 tax-free.
Is my entire pension accessible early if I am unwell?
The first 25% of your pension can be taken as a lump sum, up to €200,000 tax-free.
Can I still receive tax-free benefits if I retire early?
Yes,the first 25% and up to the first €200,000 of your lump sum withdrawal is tax-free, even with early retirement.
What happens to the rest of my pension after I take the lump sum?
You can either buy an annuity or invest in an Approved Retirement Fund (ARF).
How can I access my occupational pension early?
If you leave employment after age 50, you may access your occupational pension.
What are the conditions for accessing a pension due to serious illness?
Medical proof of incapacity for work in total, meaning unable to complete any sort of work to create an income, is required to access pensions on ill-health grounds.
What happens if I have more than one pension?
You may combine pensions or access them separately based on individual rules. They will all end up in a single ARF/Annuity.
What is the tax treatment of my pension after early withdrawal?
Withdrawals beyond the lump sum are subject to standard income tax. If you are fortunate enough to maximise your tax free lump sum and receive the first €200,000 tax free the next €300,000 is taxed at 20%.
Can I still contribute to my pension after accessing it early?
No when you mature a pension it stands alone, however you are more than entitled to pay into another separate pension in some cases.
Do I need a financial advisor to access my pension early?
While not mandatory, it’s highly recommended to consult an advisor for tax efficiency and understanding. A financial Advisor will explain everything about each individual pension and make the path forward very clear.
What is an Approved Retirement Fund (ARF)?
An ARF allows you to invest your pension funds and potentially grow with compounding interest so it can last you without bombing out into late retirement.
What happens to my pension if I die before retirement?
An ARF goes to your estate tax free. You must put a rendition on your annuity for it to go to your estate.
What is the earliest age I can retire?
Statutory retirement age is 66. Typically, 50 years old is the minimum age for early retirement.from certain pensions. RAC and PRSA’s retire at age 60.
Is there any penalty for early pension withdrawal?
There are tax implications on funds withdrawn beyond the tax-free limits.
What is a PRSA, and can I access it early?
A PRSA (Personal Retirement Savings Account) allows early access from age 60.
How long does it take to access my pension early?
Processing times vary depending on your pension provider and circumstances generally 6 to 8 weeks sometime faster however not that often.
Can I access my pension if I leave Ireland?
Yes, but tax rules may vary depending on your residency status.
Can I transfer my pension to another scheme before accessing it?
Yes, you may transfer your pension to another qualifying scheme.This may or may not be to your advantage. Take the advice of a Financial Advisor.
Do you have any lingering inquiries?
Experiencing difficulty locating the desired information? Reach out for a discussion.