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Options for Pensions from Previous Employments

July 12, 2022
Harvest News
Pensions from Previous Employment, Pensions, Previous Employment

A Personal Retirement Bond is a pension plan set up to allow you transfer in pension funds you might have from previous employments.

Your retirement plan should encompass all pension funds you have accumulated over your career, including funds from prior jobs.

Unfortunately, leaving the funds in an old employer’s pension scheme can mean that it becomes
difficult to ensure this happens over time. Depending on where the scheme is administered (and by whom); who the Trustees are; and where it is invested; you may experience difficulties obtaining regular information about your fund.

This includes information on fees and charges, the investment mix and performance of same, and most importantly advice regarding your retirement options under Irish Pensions rules.

The key considerations regarding previous pension funds tend to be as follows:

How best to Invest the Pension Fund?

In simple terms, your pension investment strategy should reflect the likely timeframe to the point at which you want to take your pension retirement benefits. There are a variety of areas we discuss with clients relating to investing, such as their preference for investing responsibly or any particular asset classes they might be interested in. Generally speaking, if you have time on your side, you might be more accepting of short-term investment volatility and therefore opt for a higher risk investment fund with the capacity for higher returns.

Your Options in accessing the Pension Fund?

A PRB will offer you great flexibility in deciding on when the right time is to take your pension lump sum entitlements. Usually, you can take benefits any time between ages 50 and 70.

This means you might stagger taking your pension benefits from different ‘pots’ if appropriate; or invest the fund with one retirement date in mind and access all pension funds at the same time. Transferring your fund to a PRB will mean you make this decision can execute the retirement with the minimum amount of hassle, with the support of your advisory firm.

Administration and Advice

It is often the case that your prior pension fund will sit within a large pension scheme with many other individual employees. You likely did not have much of a relationship with the advisor on the scheme itself, or much engagement other than receiving your annual benefit statements.

Transferring the fund to your own PRB means you cut ties with the previous employer and the advisor on the old scheme. Going forward, the advice you receive will be easier to access, more relevant, and specific to your circumstances.

We’re here to help.

In these extraordinary times clear, straightforward advice can help provide clarity as to your options. Call Harvest on 01-2375500 or email and we will be delighted to help with queries relating to Options for Pensions from Previous Employments.

Please note that the provision of this product or service does not require licensing, authorisation, or registration with the Central Bank of Ireland and, as a result, it is not covered by the Central Bank’s requirements designed to protect consumers or by a statutory compensation scheme.

Warning: If you invest in this product you will not have access to your money until your retirement date.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.

The marketing material is not intended to provide advice and is provided for general information purposes only.