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Withdrawing my Pension

  • 10-01-2020 3:21pm
    #1
    Somara198
    Registered Users, Registered Users 2 Posts: 16 ✭


    Hey all
    i have a Zurich Pension from my previous employer that i would like to liberate
    and was wondering if i will get taxed on the withdrawal i am age range between 30 and 40


Comments

  • #2
    endacl
    Registered Users, Registered Users 2 Posts: 22,407 ✭✭✭✭endacl


    You’ll certainly have to pay the income tax that would have applied had it not gone into a pension. If you’re on the high rate this would mean losing close to half its value.


  • #3
    Somara198
    Registered Users, Registered Users 2 Posts: 16 ✭Somara198


    endacl wrote: »
    You’ll certainly have to pay the income tax that would have applied had it not gone into a pension. If you’re on the high rate this would mean losing close to half its value.

    so if i have say 10000 in the account i would lose 5000 , i was paying the higher tax band in the previos employer


  • #4
    endacl
    Registered Users, Registered Users 2 Posts: 22,407 ✭✭✭✭endacl


    Yep. Well, not quite, but close to.

    You’d be as well leave it there if you can.


  • #5
    Saudades
    Registered Users, Registered Users 2 Posts: 383 ✭✭Saudades


    Somara198 wrote: »
    so if i have say 10000 in the account i would lose 5000 , i was paying the higher tax band in the previos employer

    I assume it will depend on which tax band you're paying for your 2020 income, not the tax band at the time of your previous employment.

    Pension withdrawals are usually 25% tax free, but in the case of 'liberation', and because you are under the pensions normal retirement age, I'm not sure if this 25% tax free would apply to you.

    Zurich have an article about it here but they don't mention tax.
    https://www.zurich.ie/pensions-retirement/faqs/can-you-draw-pension-early/


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