Planning for retirement - your pension options

You'll have lots to consider when the time comes to take your pension benefits. Things like your tax position and relationship status. The way you feel about risk. Even your general health. 

You'll also need to gather a lot of documents together. That can take some time, so it's good to get started well ahead of your retirement date. You'll find more information on the documents we need in the 'Things to think about' section below.

We'd also recommend that you speak with a financial adviser. They'll help you make the decisions that will work best for you. If you don't already have an adviser, try to find one in your area.

Your pension options

The right choice for your retirement

Accessing your pension benefits

You have a few options when it comes to accessing your pension benefits. You'll normally be able to take a cash lump sum of 25% of the policy value (see below for details). With the balance of your fund, subject to Revenue rules, you can:

  • Buy a guaranteed taxable pension income (annuity) for the rest of your life 
  • Remain invested in a PRSA (known as a Vested PRSA).
  • Invest in an approved retirement fund (ARF) 
  • Draw down taxable cash 
  • Combine these options

Things to think about

Almost ready to make your decision? That's great – there are just a few more things we need to let you know.

Revenue rules say we must take all your pension arrangements into account when we're working out your pension benefits. That applies to any benefits you're already receiving, as well as any you haven't yet claimed, and includes:

  • Company pensions with current and previous employers
  • Personal pensions (sometimes called Retirement Annuity Contracts)
  • Personal Retirement Savings Accounts (PRSAs)
  • Self-administered schemes
  • Buy out bonds (sometimes called personal retirement bonds)

Combining pension plans

If you have a few pension policies with different companies, it could save you money to bring them together because you may pay less in charges. You'll also be able to keep track of your investments at a glance. 

Warning: The value of your Vested PRSA/Approved Retirement Fund investment may go down as well as up

Warning: Your Vested PRSA/Approved Retirement Fund invest may be affected by changes in currency exchange rates

Warning: If you invest in Vested PRSA/Approved Retirement Fund you may lose some or all of the money you invest

Warning: The income from your Vested PRSA/Approved Retirement Fund investment may go down as well as up 

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