When you access either a Personal Pension or Company / Occupational Pension or PRSA Pension, you will access the Pension under 2 headings:
- Tax Free Cash Lump Sum and
- The balance of the Pension is taken in the form of an Annuity or Approved (Minimum) Retirement Fund also known as an ARF & AMRF
The tax free lump sum entitlement can be calculated in one of 2 ways (depending on the type of pension you are accessing). These are:
- A Tax Free Lump Sum equal to 25% of the value of the Pension Fund or in some cases,
- A Tax Free Lump Sum no more than 1.5 times your pre retirement income.
In both cases the tax free lump sum is capped at €200,000
In most cases you will be required to use the residual balance of the pension to either:
• Purchase an Annuity or
• Invest in an ARF / AMRF (Approved Retirement Fund / Approved Minimum Retirement Fund)
For a free no obligation consultation,
Fill in the Form and we will contact you by phone or email to see if we can help.