One off Access to pension

pavb2

I have some money in a directors executive pension scheme and in these difficult times would quite happily pay the tax if I could access it.

I heard talk of government allowing one off access to pension fund how likely is this and would this be part of a budget or come in sooner.

It seems madness to me that my business could go under putting people on social welfare while money that would ensure it's survival is not available.

This aside from the boost in tax to the revenue.

coylemj

Aside from your circumstances, it is Govt. policy to not allow people access to their pension money before they retire, otherwise they would succumb to the temptation in hard times to dip into it and leave themselves in poverty in their old age relying on the state old age pension.

You only have to see what's happened the National Pension Reserve Fund to see what happens when money that's supposed to cover a rainy day is readily accessible to cover today's problems.

Koscienly

I've hit hard times like many but I was able to get my pension money back thank god. It can be done

smcgiff

coylemj wrote: »

Aside from your circumstances, it is Govt. policy to not allow people access to their pension money before they retire,

See, you lost me there. Would this be the same Government policies that wrecked the economy in the first place?

Further, I don't subscribe to the idea that people should live in penury now to enjoy a life of milk and honey in their dotage.

pavb2

Good comments my position is I see a lot of talk encouraging start ups entrepreneurs etc all good ideas but there doesn't seem to be a lot of help out there for existing business.

For me 11 years in business trying to survive the past 3 years has been an absolute nightmare. Gone from 18 staff to 4. looked for temporary 3 month overdraft of €15k from bank last Sept,point blank refused on telephone bank wouldn't even meet to discuss.Ended up putting €18K in to business on personal credit card.

Access to 25 - 50k of my pension fund would near enough guarantee me another couple of years when hopefully things will have improved

I understand about not leaving things tight for retirement but surely a cap % wise on what you can withdraw would work.Simple things like access to the fund aren't even on the table and I wouldn't consider it a great intellectual leap or thinking to put some scheme in place but then this would probably take too long to set up.

hmmm

I had a great laugh when I heard that the government position was that they didn't want to allow early access to pensions as it would be detrimental to people saving for their future. In the same week I heard this argument they introduced the direct theft from private sector pension funds and plan for future cuts to tax relief which will lead to a massive falloff in pension saving.

Allowing early access to part of pensions would be a great idea for the short term, it would allow people who are cash poor but pension rich to help themselves, and it would bring potentially vast amounts of money back into the country. Sadly the pencil pushers who run the state lack the imagination to introduce such a measure, they prefer to automatically introduce a tax which is something they are good at.

Koscienly

Pav, What amazes me is that you can actually access your pension now if you know how. Do you know that you can legally transfer your pension overseas to avoid the tax? What worries me most is that the way this ecomony is going the pensions will be worth zero by the time we reach reitirement age. Make the proper enquiries and you will find out that it can be done despite what the pension companies tell you

Pablo Sanchez

Koscienly wrote: »

Pav, What amazes me is that you can actually access your pension now if you know how. Do you know that you can legally transfer your pension overseas to avoid the tax? What worries me most is that the way this ecomony is going the pensions will be worth zero by the time we reach reitirement age. Make the proper enquiries and you will find out that it can be done despite what the pension companies tell you

Enlighten us, how did you get your hands on your pension savings?

Kennie1

Koscienly wrote: »

Pav, What amazes me is that you can actually access your pension now if you know how. Do you know that you can legally transfer your pension overseas to avoid the tax? What worries me most is that the way this ecomony is going the pensions will be worth zero by the time we reach reitirement age. Make the proper enquiries and you will find out that it can be done despite what the pension companies tell you

+1 but what country can you transfer your pension fund and pay no tax...never heard of the like! There are rules set down which goverens which type of overseas pension you can transfer into. Perhaps you are talking about bed and breakfasting a pension fund in a number of different countries to avail of cashing in a pension early and even if you do this there are major risks and rules to consider before doing this kind of transaction

Retirement planning is a major issue for the people of this country as well as all other countries in the EU, we have a population that is living longer with a smaller working population to support people in retirement so the sums dont add up.

IMO actually cashing in part of a pension is the wrong way to go without the correct controls being put in place. I fully understand the pain pavb2 and many more like him/her is going through and if they could use some type of mechanism so they could borrow from their pension fund at a low interest rate over a predetermined time frame rather than cashing it in, this may save their business and create more employment and keep more people off the dole and drawing benefits.

Koscienly

Hi Kennie,

That's the sort of thinking that the goverment needs to put in place. It's madness to think people have put plenty of money into a pension and have absolutely no access to even part of it during these times.

Pablo,

The service for releasing your pension exits in Ireland. I still have the number of the guy that performed the pension release for me.

jjmcclure

Koscienly wrote: »

Hi Kennie,

That's the sort of thinking that the goverment needs to put in place. It's madness to think people have put plenty of money into a pension and have absolutely no access to even part of it during these times.

Pablo,

The service for releasing your pension exits in Ireland. I still have the number of the guy that performed the pension release for me.

PM me the number please!

Thanks

Pablo Sanchez

Koscienly wrote: »

Hi Kennie,

That's the sort of thinking that the goverment needs to put in place. It's madness to think people have put plenty of money into a pension and have absolutely no access to even part of it during these times.

Pablo,

The service for releasing your pension exits in Ireland. I still have the number of the guy that performed the pension release for me.

Thanks Koscienly but im more interested in the service you mention, what form does it take? The revenue do not allow access to personal pensions prior to 60 unless you have been permanentlysigned off work due to ill health.

Pablo Sanchez

Retirement – when can the benefit be taken?
[FONT=Arial,Arial][FONT=Arial,Arial]You can take a benefit from an RAC as follows:
at any time after age 60 but before age 75
at any time in the event of serious ill-health.
You do not need to retire in order to draw a benefit. In the case of retirement due to serious ill-health you will be deemed permanently unable to work.
There are a relatively small number of professions where the Revenue will permit retirement before age 60, such as certain sports people.
[/FONT][/FONT]
Taken from http://www.pensionsboard.ie/en/Publications/Guide_to_Pensions/Retirement_Annuity_Contracts.pdf

Page 4[FONT=Arial,Arial][FONT=Arial,Arial]
[/FONT][/FONT]

Kennie1

Just to add to that Pablo

In the case of a Personal Pension benefits can be transfered to a PRSA where an employee over the age of 50 and with their employers consent may retire and claim pension benefits. You may also surrender a PRSA at any time if the value of the fund is under 650 euro

In the case of a company pension either DB or DC and the member is over the age of 50 and is leaving service the scheme rules may allow early retirement or the member may request the value of the assets held by the scheme to be transfered to a BOB, when the benefits are transfered to a BOB and once the person is over the age of 50 they may take their TFLS and pension. You may also get a refund of the current market value of your own contributions if you were a member of the scheme for less than 2 years, you will pay tax @ 20% even if you got tax relief at 41% Again early retirement options apply in the case of ill health

This is not an exhaustive list but covers most of the times that a pension can be surrendered early

Again I be very carefull if anyone advises that they can help you release your pension fund outside the above. There is a lot of scam's going on and as Pablos link would suggest you could find yourself in hot water with the revenue as a result!

Koscienly

Hi Kennie,

I can assure you that the service I received was not a scam

Kennie1

I never said that the service that you received was or was not a scam. I mearly advised that people should be aware of scams. By the same token and I do not mean to cause you offence or imply anything but how could we know if you are a scam artist or not, plying your trade here on boards, when asked by Pablo to "enlighten us" you did not reply to the question but instead you said that you "have a phone number for a guy"

Again I am not calling you a scam artist as I do not have any evidence that suggests that you are or are not, i'm just telling people to be careful!!!

I would really like to know how this is being done legally and that revenue will not come back to haunt a person in a few years time. (uk revenue are investigating the practice of transfering pension funds for B&B to NZ to get a higher TFLS at the moment)

Koscienly

Kennie,

I couldn't agree more with you about being careful, I think that is merely good common sense.

I'm not here to ply my trade nor anyone else's so if I was to "enlighten you" as to how I received my pension back I would be advertising someone esle's services and that it something I have no interest in doing.

The service exits in Ireland and I glady availed of it.

Simply put, I got my pension fund back, and I'm absolutely thrilled that I did. If by reading my post somebody else is helped out of the similar hole I found myself in well then Happy Days.

Kennie1

Koscienly wrote: »

I'm not here to ply my trade nor anyone else's so if I was to "enlighten you" as to how I received my pension back I would be advertising someone esle's services and that it something I have no interest in doing.

How would you telling us how this is done be advertising someones else's services? I am only asking how this is done, not for the name of person or his phone number, you made a claim that you got your money out of your pension, I am only asking you you to back up your claim by telling us how it is done???

Just after looking at this thread http://www.askaboutmoney.com/showthread.php?t=156888 looks like your plying someones services to me when you wont give a number for the person but instead give your own number by PM.

Looking at this tread I beginning to think I am getting the sniff of bulsh1t or something that is illegal

Pablo Sanchez

Koscienly wrote: »

Hi Kennie,

I can assure you that the service I received was not a scam

No need to be so mysterious so! How was it done?

Koscienly

I came on this board and another one to share a positive experience I had with regards to releasing my pension and for no other reason.

Kennie to suggest what I'm saying is either bull or illegal is unfair and not true.

There is no great mystery to it.

I'm sure you'll find out yourself how it's done when you do your homework.

Slan

Koscienly

Since you asked gentlemen.

I'm no expert on this but I know my pension was transfered overseas and the funds were then released back to me.

The fees I was charged were about 10% but they did say it depended on the size of the pension.

The process took about 3 months and the service was very professional throughout.

Hope that satifies all your questions.

leftwinger

I have a small private pension in the UK from when i worked there ,value less than 10k. I have not contributed to the pension or lived in the UK for 20 years.I am an Irish national. Can this fund be released or transferred to an Irish fund. ??

Kennie1

Can be transfered to a pension fund here in Ireland but this may not be the best decision at the moment considering that the government are imposing 0.6% pension levy for the next 3 years (pension levy already deducted for 2011) You should seek an appointment with a financial advisor for more information regarding what the best options are for your circumstances.

leftwinger

Thanks for that Kennie....do you know if it could be cashed in ?

Kennie1

Depends on a number of factors such as what kind of pensions it is from the UK and your age. You would need to speak to a pension advisor as opposed to a regular financial advisor. Pension advisors in general have a better knowlage of ways that pension funds can be accessed (not taking away from financial advisors)

HowFinancial

Retirement funds are accessible upon retirement or in other very specific circumstances, such as disability. Retirement ages tend to be 60 at the earliest - however there are many exceptions, all of which depend on your particular circumstances.
I see above a retirement age of 50 is quoted if you move your director's pension to a buy out bond. Your ability to release such funds from age 50 would normally require you to relinquish total control of your company including selling shares and giving up directorship. Be very careful, and get good advise before thinking further about such options.
With a self-directed or self-invested pension scheme the focus of your retirement investments can be very different from the traditional unit linked funds. There is an "arms-reach" rule which generally means you cannot invest in personal businesses (which can be frustrating).
However, your question really need to examined with a lot more information about your particular circumstances. Probably best to do this in conjunction with a Financial Advisor & an Accountant (good ones).
P.S. usually there would be no charge for a chat with a financial advisor