Your retirement options
When you want to take your pension benefits, you have several choices. The right choice for you depends on things like your tax position, whether you have a partner, your attitude to risk and even your health.
Gathering all necessary documentation can take some time, we recommend you start this process well in advance of your retirement date.
You'll have important decisions to make, so we recommend you talk to your financial adviser.
Eligibility and options
If you have a personal pension
You can take your benefits from age 60. Or, if you prefer, you can continue working and adding to your pension fund. You can delay taking your benefits any time up to age 75.
If you're being paid a pension of more than €12,700 each year or have an existing approved minimum retirement fund with a total premium of €63,500
Take a cash lump sum |
|
You can take a cash lump sum of up to 25% of your pension fund (or, if you have a company pension, you can take your cash lump sum based on salary and service instead). • The first €200,000 will be tax free If you have taken benefits from a pension already, then talk to your financial adviser as the limits that apply to you may differ. |
and with the balance |
|
• You can buy a guaranteed pension income for life (an annuity) |
If you're not being paid a pension, or your pension is less than €12,700 each year
Take a cash lump sum |
|
You can take a cash lump sum of up to 25% of your pension fund (or, if you have a company pension, you can take your cash lump sum based on salary and service instead). • The first €200,000 will be tax free If you have taken benefits from a pension already, then talk to your financial adviser as the limits that apply to you may differ. |
and with the balance |
|
• You can purchase an annuity If you've got a small annuity and/or existing AMRF, you can combine premiums to make up the €63,500. If you only have a small annuity, you need to purchase enough annuity to bring the combined guaranteed pension income to €12,700, or invest €63,500 in an AMRF. |
If you're seriously ill and need to retire early
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If you are seriously ill or disabled and you have to permanently give up work as a result, you may be able to take your benefits before you reach age 60. |
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To make an ill health early retirement claim, you'll need to provide satisfactory medical evidence. Please ask your GP or attending physician to complete our Ill health questionnaire and for them to return it to our Chief Medical Officer at Standard Life, 90 St Stephen's Green, Dublin 2. |
If you have a Personal Retirement Savings Account (PRSA)
You can take your benefits from as early as age 50, assuming you are an employee and retiring from that employment. Otherwise, the earliest is age 60.
Or, if you prefer, you can continue working and adding to your pension fund if you want to delay taking your benefits any time up to age 75.
If you're being paid a pension of more than €12,700 each year or have an existing approved minimum retirement fund with a total premium of €63,500
Take a cash lump sum |
|
You can take a cash lump sum of up to 25% of your pension fund (or, if you have a company pension, you can take your cash lump sum based on salary and service instead). • The first €200,000 will be tax free If you have taken benefits from a pension already, then talk to your financial adviser as the limits that apply to you may differ. |
and with the balance |
|
• You can buy a guaranteed pension income for life (an annuity) |
If you're not being paid a pension, or your pension is less than €12,700 each year
Take a cash lump sum |
|
You can take a cash lump sum of up to 25% of your pension fund (or, if you have a company pension, you can take your cash lump sum based on salary and service instead). • The first €200,000 will be tax free If you have taken benefits from a pension already, then talk to your financial adviser as the limits that apply to you may differ. |
and with the balance |
|
• You can purchase an annuity If you've got a small annuity and/or existing AMRF, you can combine premiums to make up the €63,500. If you only have a small annuity, you need to purchase enough annuity to bring the combined guaranteed pension income to €12,700, or invest €63,500 in an AMRF. |
If you're seriously ill and need to retire early
|
If you are seriously ill or disabled and you have to permanently give up work as a result, you may be able to take your benefits before you reach age 60. |
|
To make an ill health early retirement claim, you'll need to provide satisfactory medical evidence. Please ask your GP or attending physician to complete our Ill health questionnaire and for them to return it to our Chief Medical Officer at Standard Life, 90 St Stephen's Green, Dublin 2. |
If you have a company pension
You can take your benefits from age 60, or you can take early retirement from age 50 in certain circumstances.
If you prefer, you can continue working and adding to your pension fund. You can delay taking your benefits any time up to age 70.
If you're being paid a pension of more than €12,700 each year or have an existing approved minimum retirement fund with a total premium of €63,500
Take a cash lump sum |
|
You can take a cash lump sum of up to 25% of your pension fund (or, if you have a company pension, you can take your cash lump sum based on salary and service instead). • The first €200,000 will be tax free If you have taken benefits from a pension already, then talk to your financial adviser as the limits that apply to you may differ. |
and with the balance |
|
• You can buy a guaranteed pension income for life (an annuity) |
If you're not being paid a pension, or your pension is less than €12,700 each year
Take a cash lump sum |
|
You can take a cash lump sum of up to 25% of your pension fund (or, if you have a company pension, you can take your cash lump sum based on salary and service instead). • The first €200,000 will be tax free If you have taken benefits from a pension already, then talk to your financial adviser as the limits that apply to you may differ. |
and with the balance |
|
• You can purchase an annuity If you've got a small annuity and/or existing AMRF, you can combine premiums to make up the €63,500. If you only have a small annuity, you need to purchase enough annuity to bring the combined guaranteed pension income to €12,700, or invest €63,500 in an AMRF. |
If you're seriously ill and need to retire early
|
If you are seriously ill or disabled and this is preventing you from working your normal occupation, or it has significantly reduced your earning capacity, you may be able to take your benefits before you reach age 60. In addition, if you are suffering from a terminal illness (where your life expectation is months, rather than years) you may be able to take your pension benefits as a lump sum. |
|
To make an ill health early retirement claim, you'll need to provide satisfactory medical evidence. Please ask your GP or attending physician to complete our Ill health questionnaire and for them to return it to our Chief Medical Officer at Standard Life, 90 St Stephen's Green, Dublin 2. |
If you're living outside the Republic of Ireland
As you are no longer resident in the Republic of Ireland, the options available to you at retirement are restricted.
We suggest you contact your financial adviser or our claims team on 01 639 7000, for further details.
Cash lump sum, annuity and/or ARF?
You can take a cash lump sum and with the balance, subject to Revenue rules, you can
• Buy a guaranteed taxable pension income for the rest of your life (an annuity) or
• Invest in an approved retirement fund (ARF) or
• Take taxable cash or
• Choose a combination of these options
Cash lump sum
You are entitled to a cash lump sum from your pension policy, normally up to 25% of your policy value (or, if you have a company pension, you can take your cash lump sum based on salary and service instead).
The first €200,000 will be tax free;
The next €300,000 will be taxed at 20%;
Anything more than €500,000 will be treated as income and taxed under the PAYE system.
If you've taken benefits from a pension already, any lump sum you received will count towards these limits, for more information please talk to your financial adviser.
You could use it to pay off your debts, fund that trip of a lifetime or invest it so that it has the potential to grow in a tax efficient way – it's entirely up to you.
Bear in mind that by taking a lump sum, you'll have less left in your pension fund with which to buy an annuity or invest in an approved retirement fund.
Annuity
You can use your pension fund to buy a guaranteed income for the rest of your life. You can choose to have your annuity income stay the same or automatically increase each year.
You can also choose for your spouse/civil partner to carry on being paid some or all of the income after you die.
The choices you make will affect the income you get, for example, the more you want your spouse/civil partner to be paid after your death, the lower your income will be.
The income stops when you (and your partner with a joint life annuity) die, so there are no funds to leave your dependants.
You can choose to have your income guaranteed for a number of years, so there is still an income paid after your early death.
What's the difference between an annuity and an ARF?
Do you want a guaranteed income (Annuity) or a flexible income (Approved Retirement Fund) or both?
| Issue | Annuity | ARF |
| Payable for life | Yes - guaranteed income for life | No - ARF could run out while you're still alive |
| Access to income | A guaranteed income for life but no flexibility |
Both occasional and regular income withdrawals are allowed.
|
| Investment growth potential | None - You are locked into an annuity rate for life | Yes - your fund can grow or fall but you need to find a level of risk and reward that suits you |
| Passing on to your family |
Your income stops when you die (it may be payable for longer if you have chosen a guaranteed period and/or a spouse/civil partner's annuity) | Your ARF can be left to your family (tax payable will depend on who you leave it to). |
Approved retirement funds (ARF)
An approved retirement fund (ARF) allows you to leave your pension fund invested and adjust income to suit your needs. You must withdraw a certain percentage each year from your ARF:
- 4%, if you're 60 years of age or over for the full tax year, or
- 5%, if you're 70 years of age or over for the full tax year, or
- 6%, if you've a combined ARF and vested PRSA assets of €2 million or more, and aged 60 or over the full tax year.
An approved minimum retirement fund (AMRF) is an ARF that has restrictions on the amount you can withdraw each year. You can take one withdrawal each year, up to 4% of the value of the AMRF, any withdrawals from an ARF or AMRF are treated as income and are taxed under PAYE system.
With an ARF and AMRF, you can leave the funds to your family (tax payable will depend on who you leave it to).
What's the difference between an annuity and an ARF?
Do you want a guaranteed income (Annuity) or a flexible income (Approved Retirement Fund) or both?
| Issue | Annuity | ARF |
| Payable for life | Yes - guaranteed income for life | No - ARF could run out while you're still alive |
| Access to income | A guaranteed income for life but no flexibility |
Both occasional and regular income withdrawals are allowed.
|
| Investment growth potential | None - You are locked into an annuity rate for life | Yes - your fund can grow or fall but you need to find a level of risk and reward that suits you |
| Passing on to your family |
Your income stops when you die (it may be payable for longer if you have chosen a guaranteed period and/or a spouse/civil partner's annuity) | Your ARF can be left to your family (tax payable will depend on who you leave it to). |
What you need to consider
To calculate your pension benefits, Revenue requires us to take all your pension arrangements into account, regardless of whether they are in payment or yet to be claimed
- company pensions with your current and previous employers
- personal pensions
- PRSAs
- self-administered schemes
- buy out bonds
If you have a personal pension or PRSA with us and you want to retire or claim your policy
Please complete Retirement Instruction Form for Personal Pensions and PRSA with your financial adviser.
If you want to invest in an ARF and/or AMRF with us, using money currently invested with another provider, please complete ARF/AMRF application form with your financial adviser.
To avoid a delay in receiving your payments, you should complete the form and send to us with all supporting documents.
If you have a company pension, buy out bond or PRSA AVC
1. If you're unsure of your options, complete Retirement options - Questionnaire and send to Standard Life, 90 St Stephen's Green, Dublin 2. Upon receipt we'll calculate your benefits and give you options, you should then talk to your financial adviser
2. If you know what you want and decide to take your pension benefits, review and complete Retirement Instruction Form for Company Pensions, Buy Out Bonds and PRSA AVC with your financial adviser
If you want to invest in an ARF and/or AMRF with us, using money currently invested with another provider, please complete ARF/AMRF application form with your financial adviser.
To avoid a delay in receiving your payments, you should fully complete the form and send to us with all supporting documents.
Supporting documents that we need from you
1. Certified copy of your recent bank statement (within the past 6 months)
2. Certified copy of ID for you, for example, current passport, current drivers licence
All of the above can be scanned and emailed to us at fundtransactions@standardlife.ie or posted to Standard Life, 90 St Stephen's Green, Dublin 2
Getting your documents certified
Documents can be certified by:
- Qualified Financial Adviser
- An Garda Siochana
- Chartered Accountant
- Solicitor or Notary Public
- Financial Institution
- An Post
- Your GP
You can take original documents to any of the above, where they will stamp and sign a photocopy, to certify that it is the same as the original.
Combining your pensions could save you money
If you’ve got a few pension policies with different companies, it could make financial sense to bring them together. You'll be able to keep track of your investments at a glance and you may end up paying less in charges.
Is combining your policies right for you?
It depends on your circumstances, whilst taking the following into account.
| If you're buying an annuity | More control - buying one annuity makes it easier to manage |
| If you're investing in an ARF |
More control – a single set of figures makes it easier to review performance More choice – you may be able to choose from more investment options Fewer charges – one set of charges could save you money One point of contact – and with My Standard Life online you'll be able to check your policy value at a time that suits you. (annuities aren't on MyStandardLife) |
| Will you have to pay an exit charge? | Check if your policy has an exit charge and what the amount is |
| Could you lose a valuable benefit? | You won't be able to transfer features like guarantees – you may have a fund with a guarantee and/or a policy with a guaranteed annuity rate |
| Will you really save money on costs? | Check charges for new and existing pensions to be sure |
Moving your pensions to Standard Life
Transferring pensions isn’t for everyone.
Talk to your financial adviser or contact us on (01) 639 7070 before you decide.
Calls may be monitored and/or recorded to protect both you and us and help with training. Call charges will vary.
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MyFolio transcript
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Making your investment choices easier.
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