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What is a Personal Retirement Bond

December 10, 2018
Harvest News
guide to pensions

When an employee or company director leaves service, or indeed if the company itself ceases to trade, they will typically have the option to transfer their company pension fund to a Personal Retirement Bond, (PRB).

What is a Personal Retirement Bond?

A PRB is a single-premium pension plan put in place by the Trustees of the company pension scheme for the benefit of the member leaving service. Once the PRB is set up the member can exercise control over the investment strategy and decide when to take benefits from the fund, subject to the minimum allowable age under the original pension scheme.

Where can I invest my PRB?

There is a considerable array of options available for investment of your PRB. You may not want much involvement in the investment strategy itself and choose to invest in a pre-constructed portfolio from one of the Life companies or other product providers.

On the other hand, you may want more input and control into where your fund is invested, in which case a Self-Administered PRB may be more suitable. We can advise you as to the relative benefits of both options.

What is a Self-Administered PRB?

With a Harvest Self-Administered PRB the investment choice is ultimately down to you. Some of the assets our clients choose to invest in are:

  • Property (geared and ungeared);
  • Personalised Equity Portfolios;
  • Corporate and Government Bonds;
  • International Funds;
  • Private Equity; and
  • Deposits

When can I take Retirement Benefits from my Harvest PRB?

When it is set up the Retirement Age on a PRB must match the original scheme. However, as long as you have left service, early retirement benefits can usually be taken from a PRB from age 50, unless restrictions have been imposed by the scheme Trustees. If you are a 20% Director, shares must be disposed of, prior to accessing early retirement benefits from the Buy Out Bond.

Why talk to Harvest?

At Harvest we offer Award winning Pensions advice, with Cost Transparency at the core of the service that we provide our clients. If you need simple, clear advice with the flexibility of Self-Administered Investment options; contact us today on 01 2375500 or email Harvest are the Investment Broker of the Year and also the Pension Broker of the Year 2018.

This marketing information has been provided for discussion purposes only.  It is not advice, it is provided for general information purposes only and does not fully take into account your financial position, investment needs and objectives, attitude to risk, liquidity needs, capital security needs, capacity for loss, etc.  It should therefore not be relied upon to make investment decisions.  Prior to any formal investments taking place you will be provided with a detailed suitability letter taking into account all the above and outlining why the investment(s) are (not) suitable for you.

Warning: If you invest in this product you may lose some or all of the money you invest.

The information contained herein is based on Harvest Financial Services Limited’s understanding of current Revenue practice as at December 2018 and may be subject to change in the future.

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.

The product and / or services described herein are not available for distribution to, or investment by, US residents or citizens.  The product and / or services may not be directly or indirectly offered or sold in the USA or any of its territories or possessions or areas subject to its jurisdiction or to or for the benefit of a US person.