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Pension Query

  • 03-07-2014 10:29am
    #1
    chrislad
    Registered Users, Registered Users 2 Posts: 8,324 ✭✭✭


    Just a quick query. I had a pension when in a previous job. I didn't pay much per month into it (about 1% of my wage per month for a period of about 6 years) - the contribution was about 12e for 2 years, and 27 for 4 years, roughly. This was matched by the employer.

    I left that job over 2 years ago, and have started a new job with a different pension provider. This job is more of a long term career compared to the previous job, and I will be involved in this sector long term.

    I emailed the company responsible for my pension with the intention of cashing out my pension, as it's probably less than 1600 for my own contributions. I know I am not entitled to, nor do I want, any of the employer contributions. I was told that this was not an option to me as I had been in the scheme more than 2 years. These were the options given to me.

    1. It stays in the scheme until normal retirement age (60) - about 30 years from now!

    2. Transfer to new employers scheme

    3. Transfer to a Personal Retirement Bond - not really sure what this is, but it does say that it may not be possible for sums under 5000.

    4. Transfer to a PRSA - again not sure what this is either, but seems to be some managed fund of sorts.

    To be honest, I really just want the cash! Do I have an entitlement at all? I know next to nothing about pensions so I'm not sure what the legalities are.


Comments

  • #2
    NewCorkLad
    Registered Users, Registered Users 2 Posts: 961 ✭✭✭NewCorkLad


    Unfortunately as you contributed to the pension for over 2 years you will not be entitled to any of the cash back that money is now tied up until your retirement.

    You would be able to access 25% of the fund from a Personal Retirement Bond from age 50 but as explained to you there would be limits to transfering to a PRB. Your best option is to transfer the value over to your new pension or put it into a high risk fund in your old pension and forget about it until you turn 60.


  • #3
    chrislad
    Registered Users, Registered Users 2 Posts: 8,324 ✭✭✭chrislad


    Oh well, there goes fixing up the house!

    Thanks for the reply!


  • #4
    chompdown
    Registered Users, Registered Users 2 Posts: 534 ✭✭✭chompdown


    Out of interest, if you cash out prior to two years, do you have to pay income tax on it?


  • #5
    NewCorkLad
    Registered Users, Registered Users 2 Posts: 961 ✭✭✭NewCorkLad


    chompdown wrote: »
    Out of interest, if you cash out prior to two years, do you have to pay income tax on it?

    Yes unfortunately, you can only avail of this if you have left that employment and your employer contributions get paid back to the employer


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