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Cashing in pension?

  • 01-06-2011 1:58pm
    #1
    southofnowhere
    Registered Users, Registered Users 2 Posts: 258 ✭✭


    Hi all.

    Looking for some advice regarding cahsing in a pension.

    Thinking of going back to college to do a Masters. If I go one-year full-time, I may need to leave work.

    IF I go down that road I would need cash to sustain myself for the next year, pay for the Masters, keep the mortgage ticking over etc

    So, how difficult is it to cash in a mortgage? It's a defined contribution pension with Mercer (company scheme) and worth about €18,000, I think, after seven years paying in.

    Also, what is thet tax on this (21 per cent I read in another thread) and how long would it take?

    Any advice appreciated.
    Tagged:


Comments

  • #2
    howamidifferent
    Registered Users, Registered Users 2 Posts: 1,819 ✭✭✭howamidifferent


    southofnowhere wrote: »
    Hi all.

    Looking for some advice regarding cahsing in a pension.

    Thinking of going back to college to do a Masters. If I go one-year full-time, I may need to leave work.

    IF I go down that road I would need cash to sustain myself for the next year, pay for the Masters, keep the mortgage ticking over etc

    So, how difficult is it to cash in a mortgage? It's a defined contribution pension with Mercer (company scheme) and worth about €18,000, I think, after seven years paying in.

    Also, what is thet tax on this (21 per cent I read in another thread) and how long would it take?

    Any advice appreciated.

    It will take about 40 years. You cant cash in a pension whenever you feel like it....


  • #3
    Kennie1
    Registered Users, Registered Users 2 Posts: 302 ✭✭Kennie1


    If you are over the age of 50 and are leaving your employment you can transfer the value to a Buy Out Bond which you could cash in straingh away, however as you have only 7 years service (assuming that you joined the scheme when you started employment) your TFLS will be quite small, with the remainder you will take as taxable cash assuning again that you have no other pension funds inforce. The rate of tax that you will pay is subject to the normal tax bands and credits.

    If you are under 50 you do not have any options!


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