Private Pensions: Age limits.

MadsL

Can anyone shed any light on age limits on private pensions.

Mine can be drawn down at age 50 but my wife's cannot be drawn down until 65.
As we have emigrated permanently, we are both looking to draw these down, and manage the funds elsewhere (my wife's fund has a minimum percentage in Irish funds performing badly) for better returns.

Are companies allowed to set such age limits and prevent transfer/draw down?

BTHUNT

The retirement age will depend on the type of arrangement.

Occupational pension schemes (defined benefit or defined contribution company pension schemes) generally have a fixed retirement age between 60 and 70, generally 65. The rules of the scheme will state the normal retirement age. Most pension arrangements permit members to retire early in certain circumstances. However, under a defined benefit scheme, the benefits you receive are likely to be lower than they would otherwise be at normal retirement age. In occupational pension schemes, early retirement is generally possible with the employer's and/or trustees' consent from age 50 onwards. However under defined benefit schemes Trustees may not be consenting to early retirement due to the funding of the scheme.

If you have a personal pension or PRSA, you probably have flexibility on when you take your pension benefits between 60 and 75. It will be stated in the policy conditions. Depending on the PRSA type, early retirement may be possible from age 50.

There are certain revenue restrictions on transferring benefits abroad, which depend on the arrangement, there may also be restrictions based on the rules of the scheme or the policy documents depending on the type of the arrangement. Transfers are not permitted once benefits come into payment.

I would suggest that you initially contact the holder of your pensions and get updated benefit details and request information from them on possible transfers and their requirements. Request a copy of the scheme booklet if it is an occupational pension scheme or a copy of the policy documentation if it is a personal pension/prsa as these will give you more information.

For info. When pensions come into payment they are taxed in the same way as salaries and wages. If you are getting an occupational pension from an Irish source, it is usually taxed under the PAYE system in exactly the same way as you were taxed while employed. If there is a Double Taxation Agreement, you may be exempted from Irish tax (but usually liable in the other country). If this is the case, the Revenue Commissioners may notify the payer of the pension (i.e., your former employer, the pension fund, etc.) that income tax is not to be deducted under PAYE. If the Revenue Commissioners do not notify the pension payer, then PAYE must be deducted in the usual way.

Hope this helps a little.