Introduction to post retirement
There are a number of choices available to provide an income when you retire:
- An annuity that provides the security of a guaranteed income during your lifetime.
- An approved retirement fund which is a tax efficient investment that can be an effective part of post-retirement tax planning.
Types of pension
Annuity
- An annuity provides a guaranteed income for life in return for a lump sum investment. The amount of income is set when the policy is purchased.
- On death, the income stops unless provision has being made at the outset to pay a spouse's income.
Approved retirement fund
- You have a range of investment options and fund managers to choose from.
- You can transfer your money from one fund or asset into another whenever you need or want to.
- Flexible access - you are no longer restricted to a set income for life.
- On death, the balance of your fund is paid to your estate.
Approved minimum retirement fund
- Similar to an Approved Retirement Fund, this is for customers who do not have a guaranteed income for life of €12,700 per annum from approved sources.
- You can only cash in the growth in your investment before age 75.
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