Company Pension Plan to PRSA to ARF for tax free cash

jjmcclure

Hi

I am currently in the process of taking early retirement to access TFC in my company pension. The company pension is in the process of moving to a PRSA, funds have been transferred from my old pension to the new provider.

My questions are.

1. How long does it usually take to set up a PRSA after funds have been placed with a new provider?
2. Does a PRSA need to "mature" before being moved to an ARF? If so how long does maturity take?

Thanks in advance.

Henry Ford III

Presumably there's a Broker involved. Why not ask them?

jjmcclure

https://www.boards.ie/discussion/comment/121284378#Comment_121284378

There is a broker involved, but there is some "vagueness", I'm trying to clarify so I know my position.

It would depend on the product provider/s involved.

What company is involved?

You have to mature the PRSA (ie. maturtity claim form). You can mature it to a vested PRSA (same policy number) or transfer to an ARF so ask about the charges involved. ARF AMC would have to be same/lower than PRSA AMC, right? Generally, you should get your TFC within about two weeks.

If you're not happy with the current broker/service, then change.

jjmcclure

Thanks, that's helpful.

Henry Ford III

https://www.boards.ie/discussion/comment/121284520#Comment_121284520

Their job (which they'll be getting paid for) for is to clarify any vagueness.

pureza

https://www.boards.ie/discussion/comment/121285598#Comment_121285598

True,but presumably the function of the forum is to ask questions on a topic to see if the community can shed any light,in addition to other sources of information

If every answer was ask your bank or broker,the forum would close

It's purpose is to share experiences!

Now I've a related question :

If you've a few private pension policies and prsa's with a retirement age of 60,going back many years can they be merged into one policy ,a prsa,accessible at 60

Presumably at 60 then you can draw down 25% of the aggregated sum tax free and have the balance paid as a monthly pension?

Thanks

Henry Ford III

https://www.boards.ie/discussion/comment/121285685#Comment_121285685

Asking for advice on a specific pension situation on a web page such as this is folly. Any answer has to be non specific. Remembering that your pension is likely to be one of your biggest assets so any error could be horribly expensive.

Giving financial advice is also against the charter. How could anyone, however well intended, be in a position to know someone's personal financial position? Doing a full fact find is not an option.

p.s. In your case if you can adjust the NRD to 60 for all the policies/benefits that's the way to go.

pureza

Thanks!

I'd agree on the advice asking dangers

One would hope that answers here are used to inform posters questions to people they're effectively hiring to advise them/point of contact to fund managers

The J Stands for Jay

https://www.boards.ie/discussion/comment/121285685#Comment_121285685

No need to merge them.

jjmcclure

Hello

I'm back again....

Is there anything technical/legislative about maturing the PRSA? Is it as simple as submitting the form and then waiting for the investment firms internal process to work? FYI I am working with New Ireland. The PRSA is due to issue today so I could reasonably expect TFC in 2 to 3 weeks?

FYI the moderators, I don't want to get into why I am not asking my broker these questions, it's a long and boring story!!

Thanks in advance.

I have never dealt with New Ireland. I have no idea what their service is like. From what I read on different forums it's not great.

You're moving from a pre-retirement product to a post-retirement product so, under normal circumstances, you complete the PRSA Maturity Claim form and submit whatever supporting documents that NI need. You'll also need to set up an ARF to receive the 75%. You probably need a different broker for that product if you're struggling to deal with them on the maturity as it's likely you'll be locked into it for 5 years with early transfer charges. Your rush to access the 25% might see you with an expensive ARF.

jjmcclure

Thanks

I'm being told 4 weeks to mature the PRSA from date of issue, which is supposed to be today. I'm relatively happy with the ARF.

Thanks again for the advice.

Henry Ford III

Your replies make clear (subtly) that you are working in Financial Services. Signing your name confirms this.

Please be careful that your advise doesn't break the forum rules about business promotion.

https://www.boards.ie/discussion/comment/121312947#Comment_121312947

https://www.boards.ie/discussion/251289/disclaimer-by-posting-here-or-reading-posts-here-you-accept-the-following

If honesty, openness, transparency and giving a contrarian view to needing an advisor 100% of the time to execute a pension/savings/investment transaction are an issue for the forum then ban me now.  

Henry Ford III

I said in my view you are frequently too close to overt business promotion here, and gave my reasons for thinking that. Nothing you've said above has made me think any different.

Be careful, and don't argue with me on thread.

Jim2007

Well if you really want to do that then, you should have been more forthcoming in our last thread about your lack of knowledge on the performance of the funds you advocated for, the underperformance of the client portfolios and your promotion of the execution only sales gimmick. And I know it is a sales gimmick because unlike you, I have been in the room when that kind of stuff was being discussed along with all of the retro payment stuff, the EU directive and the ECJ rulings on it and so on.

So you can start by going back and picking up that thread and honestly provide the information I asked you to. It's not very difficult to say what data providers you are using, what techniques you are using and how those funds are actually doing against your benchmarks, it's the stuff I'd expect advisors to have at the tip of your fingers.

Without being argumentative, because I now know we can't do that with moderators, you seriously need to reread my reply to you on that thread.

When you do, let me know.

Jim2007

You did not even provide the name of the data provider for performance analysis. So we are done, I'm not going to play world salad.