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take from pension for mortgage?

  • 16-06-2015 12:54PM
    #1
    zweton
    Registered Users, Registered Users 2 Posts: 2,692 ✭✭✭


    Is it true you can take from your current work pension to get the 10%
    needed for mortgage. Someone in work said the other day her friend is in the process of doing it. Would be handy, any truth to this?


Comments

  • #2
    Paulw
    Registered Users, Registered Users 2 Posts: 13,270 ✭✭✭✭Paulw


    Mod Note: Moving to banking to get advice from persons with knowledge. :D


  • #3
    coylemj
    Registered Users, Registered Users 2 Posts: 25,722 ✭✭✭✭coylemj


    It's BS, you cannot access the pension money so how could it count as part of the 10% savings requirement for a mortgage?

    Unless this is one of the banks playing silly games to get around the Central Bank requirements.

    Beware of anyone who offers to assist you in gaining 'access' to your pension money,there are all sorts of hokey schemes out there, most of which are only marginally legal, all of them earn large commission for the intermediaries and decimate your pension fund for not much cash in the hand. I've seen ads on the back of the Irish Times offering this service, the word from financial journalists in the UK is to stay far away from anyone offering such a service.

    You can legally withdraw up to 30% of an ARF (subject to PAYE and USC) but the main fund is out of reach until you officially retire or become terminally ill, in which case the revenue may allow the trustees to release the money.


  • #4
    EGavigan
    Registered Users, Registered Users 2 Posts: 29 ✭EGavigan


    You can withdraw up to 30% of the value of any additional voluntary contributions (AVC's) you have made to an occupational pension scheme or PRSA. This is available for a three year period until 26 March 2016.

    This withdrawal is not liable to USC or PRSI but is liable to income tax at your higher rate. You can only do this once so if you need the 30% you need to withdraw it all in one go.


  • #5
    coylemj
    Registered Users, Registered Users 2 Posts: 25,722 ✭✭✭✭coylemj


    EGavigan wrote: »
    This withdrawal is not liable to USC or PRSI but is liable to income tax at your higher rate. You can only do this once so if you need the 30% you need to withdraw it all in one go.

    My bad, the above is correct, no USC or PRSI on early withdrawal from an AVC.

    Pre-retirement access to AVCs


  • #6
    daheff
    Registered Users, Registered Users 2 Posts: 5,995 ✭✭✭daheff


    coylemj wrote: »
    My bad, the above is correct, no USC or PRSI on early withdrawal from an AVC.

    Pre-retirement access to AVCs


    so potentially this is a way around paying usc & prsi (on at least some of your earnings)?...hmmm could be interesting


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