Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
Taxation: Generally taxable, with tax-free exemptions and reliefs.
Exemptions:
Basic exemption: €10,160 + €765 per year of service.
Increased exemption: Up to €10,000 if no prior tax-free pension lump sum.
Standard Capital Superannuation Benefit (SCSB): Tax-free lump sum option, may be reduced by pension lump sums.
The maximum amount of Ex Gratia termination payments that can be received tax-free over a lifetime is capped at €200,000.
Lifetime Limit: Maximum €200,000 tax-free Ex-Gratia payments over a lifetime.
Utilising Redundancy Payments:
Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
Taxation: Generally taxable, with tax-free exemptions and reliefs.
Exemptions:
Basic exemption: €10,160 + €765 per year of service.
Increased exemption: Up to €10,000 if no prior tax-free pension lump sum.
Standard Capital Superannuation Benefit (SCSB): Tax-free lump sum option, may be reduced by pension lump sums.
The maximum amount of Ex Gratia termination payments that can be received tax-free over a lifetime is capped at €200,000.
Lifetime Limit: Maximum €200,000 tax-free Ex-Gratia payments over a lifetime.
Utilising Redundancy Payments:
Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
Employed under the legal definition (excludes independent contractors).
Dismissed due to genuine redundancy.
Calculation: Based on years of service, age, and weekly pay (capped at €600 per week).
Formula: (2 x years of service + 1) x €600
Taxation: Generally tax-free.
Ex-Gratia Payments:
Taxation: Generally taxable, with tax-free exemptions and reliefs.
Exemptions:
Basic exemption: €10,160 + €765 per year of service.
Increased exemption: Up to €10,000 if no prior tax-free pension lump sum.
Standard Capital Superannuation Benefit (SCSB): Tax-free lump sum option, may be reduced by pension lump sums.
The maximum amount of Ex Gratia termination payments that can be received tax-free over a lifetime is capped at €200,000.
Lifetime Limit: Maximum €200,000 tax-free Ex-Gratia payments over a lifetime.
Utilising Redundancy Payments:
Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
Employed under the legal definition (excludes independent contractors).
Dismissed due to genuine redundancy.
Calculation: Based on years of service, age, and weekly pay (capped at €600 per week).
Formula: (2 x years of service + 1) x €600
Taxation: Generally tax-free.
Ex-Gratia Payments:
Taxation: Generally taxable, with tax-free exemptions and reliefs.
Exemptions:
Basic exemption: €10,160 + €765 per year of service.
Increased exemption: Up to €10,000 if no prior tax-free pension lump sum.
Standard Capital Superannuation Benefit (SCSB): Tax-free lump sum option, may be reduced by pension lump sums.
The maximum amount of Ex Gratia termination payments that can be received tax-free over a lifetime is capped at €200,000.
Lifetime Limit: Maximum €200,000 tax-free Ex-Gratia payments over a lifetime.
Utilising Redundancy Payments:
Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
[/vc_column_text][/vc_column][/vc_row]
Types of Redundancy Payments:
Statutory Redundancy Payment: A legal entitlement for employees with at least two years of continuous service.
Ex-Gratia Payments: Voluntary payments from the employer, often exceeding statutory requirements.
Early Pension Withdrawal: May be possible depending on your age, pension type, and eligibility.
Statutory Redundancy Payment:
Eligibility:
At least two years of continuous service.
Employed under the legal definition (excludes independent contractors).
Dismissed due to genuine redundancy.
Calculation: Based on years of service, age, and weekly pay (capped at €600 per week).
Formula: (2 x years of service + 1) x €600
Taxation: Generally tax-free.
Ex-Gratia Payments:
Taxation: Generally taxable, with tax-free exemptions and reliefs.
Exemptions:
Basic exemption: €10,160 + €765 per year of service.
Increased exemption: Up to €10,000 if no prior tax-free pension lump sum.
Standard Capital Superannuation Benefit (SCSB): Tax-free lump sum option, may be reduced by pension lump sums.
The maximum amount of Ex Gratia termination payments that can be received tax-free over a lifetime is capped at €200,000.
Lifetime Limit: Maximum €200,000 tax-free Ex-Gratia payments over a lifetime.
Utilising Redundancy Payments:
Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
[/vc_column_text][/vc_column][/vc_row]
Types of Redundancy Payments:
Statutory Redundancy Payment: A legal entitlement for employees with at least two years of continuous service.
Ex-Gratia Payments: Voluntary payments from the employer, often exceeding statutory requirements.
Early Pension Withdrawal: May be possible depending on your age, pension type, and eligibility.
Statutory Redundancy Payment:
Eligibility:
At least two years of continuous service.
Employed under the legal definition (excludes independent contractors).
Dismissed due to genuine redundancy.
Calculation: Based on years of service, age, and weekly pay (capped at €600 per week).
Formula: (2 x years of service + 1) x €600
Taxation: Generally tax-free.
Ex-Gratia Payments:
Taxation: Generally taxable, with tax-free exemptions and reliefs.
Exemptions:
Basic exemption: €10,160 + €765 per year of service.
Increased exemption: Up to €10,000 if no prior tax-free pension lump sum.
Standard Capital Superannuation Benefit (SCSB): Tax-free lump sum option, may be reduced by pension lump sums.
The maximum amount of Ex Gratia termination payments that can be received tax-free over a lifetime is capped at €200,000.
Lifetime Limit: Maximum €200,000 tax-free Ex-Gratia payments over a lifetime.
Utilising Redundancy Payments:
Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
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Redundancy: Understanding Your Entitlements
This article outlines the key financial considerations for individuals facing redundancy in Ireland and who may have a pension with this employer.
Firstly lets looks at redundancy element and then we will look at the pension aspect
Types of Redundancy Payments:
Statutory Redundancy Payment: A legal entitlement for employees with at least two years of continuous service.
Ex-Gratia Payments: Voluntary payments from the employer, often exceeding statutory requirements.
Early Pension Withdrawal: May be possible depending on your age, pension type, and eligibility.
Statutory Redundancy Payment:
Eligibility:
At least two years of continuous service.
Employed under the legal definition (excludes independent contractors).
Dismissed due to genuine redundancy.
Calculation: Based on years of service, age, and weekly pay (capped at €600 per week).
Formula: (2 x years of service + 1) x €600
Taxation: Generally tax-free.
Ex-Gratia Payments:
Taxation: Generally taxable, with tax-free exemptions and reliefs.
Exemptions:
Basic exemption: €10,160 + €765 per year of service.
Increased exemption: Up to €10,000 if no prior tax-free pension lump sum.
Standard Capital Superannuation Benefit (SCSB): Tax-free lump sum option, may be reduced by pension lump sums.
The maximum amount of Ex Gratia termination payments that can be received tax-free over a lifetime is capped at €200,000.
Lifetime Limit: Maximum €200,000 tax-free Ex-Gratia payments over a lifetime.
Utilising Redundancy Payments:
Financial Planning: Create a plan to utilise funds for short-term needs, long-term goals (education, property, retirement), and financial security.
Consult with a Financial Advisor: Develop a strategy that aligns with your individual circumstances and financial objectives.
Contact me today if you wish to discuss your options
If you have been made redundant and have a pension in the Company, what are my options?
Option 1: Do nothing – leave your pension with past/current employers
While it might be tempting to simply leave your pension pots with previous or current employers, it might not be the best option for you in the long run.
For starters, you need to make sure that each of your pension providers have your most up to date address and contact details so that you receive your personal benefit statements every year. Secondly, it’s extremely difficult to see the entirety of your pension benefits when you have multiple pots with different employers.
Finally, depending on the type of pension you held with your former company, it might not have a chance to grow any further, for instance if it’s been converted to cash rather than staying in the investment realm when you ceased employment.
Option 2: Transfer your old pension to your new employer
Not all pension schemes allow for this type of benefit transfer, for example the rules for transferring an existing fund into an employer’s PRSA are different to those for transferring into an executive pension.
Transferring your previous pension benefits to your new employer is something that could certainly be worth considering if you envisage staying with the company for the long haul and the benefits of joining their scheme outweigh those of transferring to a Private Retirement Bond. If you move from the private sector into the public sector you can’t transfer a private pension in.
Option 3: Transfer your pension to a PRSA
Firstly, you can only transfer your existing benefits from a company pension if you have been a member of that scheme for less than 15 years, and are making the transfer either because the scheme is winding up, or you have left that employment.
However, if you have made Additional Voluntary Contributions (AVC) to an occupational pension scheme this itself can be transferred over to a PRSA, regardless of how long you held that pension for. This is a good option for many clients.
Option 4: Transfer your pension to a Private Retirement Bond (PRB)
Transferring your previous pension benefits into a Private Retirement Bond (PRB) will likely give you the most control, as well as visibility over your pension. With a PRB, everything is in one place. Any previous pension scheme trustees or employers will no longer have any involvement with your retirement fund. So rather than having multiple pension pots with varying access terms, that are all being invested in different ways (some of which you might have no control over) you get to make the decisions about where your funds are being invested – though we’d recommend that you draw on the experience of a financial adviser to do so. You also have the option to transfer your PRB to another PRB in the future should you wish to.
Depending on your own personal circumstances, a Private Retirement Bond is also a popular choice for transferring a pension that you may have accumulated from working in the UK and keeping it under one roof alongside your other pots.A Private Retirement Bond also tends to give you more options at the time of retirement. Read separate article on PRB
