Redundancy - Pension Options

BlazingSaddler

Hi all, was made redundant 6 months ago and now the company along with the pension plan is being wound up. I have now been given 3 options:
1). Transfer to another occupational pension scheme (not possible as I am still unempolyed)
2). Transfer to a Personal Retirement Bond (Buy-out-Bond)
3). Deferment option

I am fairly lost to be honest!, the value of my fund is €50k

Any suggestions would be appreciated.

Many thanks

Kennie1

I dont understand the third option if the scheme is being wound up??? If the scheme is winding up you may be able to transfer to a PRSA as well. BOB is usually the option that most people take as they usually do not get "personal advice". If you contact the company that is underwriting the bond (perhaps Irish Life as PRB is their product?) they may be able to get someone to advise you which is most suitable option over the phone.

coylemj

1. How old are you?

2. Can you describe the details of the deferment option?

BlazingSaddler

Hi both, thanks for the replies. I have since spoken to Irish Life. It now appears that I do only have the one option, which is to transfer to a Personal Retirement Bond. I suppose now I just need to decide whether or not to stay with Irish Life. Is it worth looking elsewhere? I am 37 BTW.

phormium

I am not an expert of any sort on pensions but was asked a similar question lately by a relative in same situation, I researched it for her and the advice I was given was to go with the buy out bond and the ones recommended were by Friends First, Zurich and a third that I just cant remember, Caledonian or something like that. Anyway she wanted maximum security as she would be a little older than you and the fund was less than yours, the one suggested to be best was Zurich. I got the information from someone who works in the area but they were not involved in this transaction so had nothing to gain by recommending any one in particular so I like to think they gave me the best advice, only time will tell.

BlazingSaddler

Phormium - thank you very much, I'll make some calls tomorrow.

hwfs.ie

mattb74,

most insurers do PRB's, when doing your research make sure the provider has a good fund selection and a fund that suits your needs. Then when it comes to charges make sure you dont pay too high a management fee (0.75% -1% p.a.) and ensure you recieve a minimum of 100% allocation of funds. some companies might give you a 2% bonus on your funds for investing with them.

coylemj

At your age I would put the money into a Managed fund i.e. a fund which is heavily skewed to equities, that will give you the best long term return. As you get closer to retirement age you would normally then start gradually moving the money into less volatile funds such as cash or a conservatively managed fund.

bailes

mattb74,

The advice given so far is spot on, you don't have to keep your money with Irish Life. if you look at past performance on managed funds the obvious choice is Zurich

There are some very good offers out there at the moment, you should be able to get 102% allocation which would mean that rather than your fund being worth €50k it's worth €51k on the day the money is transferred to your PRB or buy out bond. be careful of the annual management charge.

You may be able to get a broker to look after this for you and get a personal refund of some of the commission earned which may help Given your employment situation.

If this is of interest to you P.M. me

Best of Luck

Kennie1

bailes wrote: »

if you look at past performance on managed funds the obvious choice is Zurich

Past performance is not a reliable guide to future performance, a good example of this is what happened to New Ireland/BoI life funds when
Perpetual International poached their 3 top fund managers back in 2003. Also as you know Zurich like all companies have some funds that are pups when compared to other in their class. Risk to reward needs to be measured first, then a company/funds can be recommended based on that persons needs and expectations.

vedwards

Rather than start a new thread on the same subject I thought I'd re-energise this with a question in the same vain.
I was made redundant 4 weeks ago. I'm 50+ and I was part of a company group retirement plan. I have been given several options. What pit-falls should I look out for? I can't see myself being employed in the near future.
Thanks in advance.