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Drawing down pension/prsa

  • 02-11-2015 7:00pm
    #1
    Registered Users, Registered Users 2 Posts: 169 ✭✭


    Hi guys,

    I always presumed that when one became eligible that your pension scheme would pay a monthly amount based upon the value of the pension fund, however I recently learned that there are various ways of drawing down a private pension/prsa, i.e : 25% tax free lump sum plus a pension, guaranteed 5 year pension, spouses pension to mention a few options. The reason I ask is because a relative recently passed away and their pension effectively died with them insofar as their partner was not entitled to the remaining part of the pension. Is this normal?


Comments

  • Registered Users, Registered Users 2 Posts: 270 ✭✭Hani Kosti


    Yes, depending on what type of annuity was purchased, such as options below :
    Single/dependant
    0 to 10 years guarantee
    Reversion (% to be paid to dependant after death)
    Escalation
    Overlap (is dependants pension be paid only after guaranteed period or during and after)

    So if a single life pension was purchased, such annuity "dies" with the annuitant.


  • Registered Users, Registered Users 2 Posts: 169 ✭✭mr j tayto


    Thanks for your reply.

    In a situation where the pension owner is a married person with dependents what in your opinion would be the best way to draw down a pension?

    My pension is in my own name with no provision made for transfer to my spouse in the event of my death. Presumably I should change this asap?


  • Registered Users, Registered Users 2 Posts: 270 ✭✭Hani Kosti


    If your pension is already in payment, you cannot change it.

    If you're invested in a pre retirement products, the value of the pension forms part of the estate on your death (if you're in a scheme, there might be a death in service and/or widow's pension)

    I would recommend talking to a financial adviser who can assess your current situation and recommended a proper course of action. I'm suggesting this as I don't know your background, savings/investments/debts, family or medical status


  • Registered Users, Registered Users 2 Posts: 169 ✭✭mr j tayto


    Once again thank you.

    I'm not very good at these things. I will contact an advisor to discuss my particular circumstances.


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