If you have a pension from a previous employment and have not done anything about it for a while, it is good advice to make contact with your old employer and ask them for Updated Leaving Service Options in relation to your pension.
We find that when people change jobs, one of the last items that they deal with is the pension arrangement from the employment they are leaving.
Pension advice forms an integral part of what we do here at Peavoy Financial Planning. Like all matters to do with pensions, there is no such thing as generic advice and when it comes to advising on pensions from previous employments, this is definitely the case.
The advice in every case can be different, depending on a myriad of circumstances. In some cases for example, it may be best advice not to transfer a benefit anywhere, if valuable guarantees apply or if there are financial penalties to transfer out, so extreme care is needed.
When you leave an employment you are generally faced with making one of the following decisions in relation to your Pension Pot.
- Leave the pension where it is, with your old Employer
- Transfer the value to a Personal Retirement Bond
- Transfer the Value to a PRSA
- Transfer the Value to your New Employer’s Pension Scheme
Whilst all options should be carefully explored to determine which is the best option for you, in this communication, I outline some of the Key Features and Benefits of the Personal Retirement Bond Option. A Personal Retirement Bond is a revenue approved single premium contract established specifically to accept transfer values from Occupational Pension Schemes.
The choice to transfer to a Personal Retirement Bond usually arises either when you have left your job OR when a pension scheme is being wound up.
Ten Key Features & Benefits of a Personal Retirement Bond
- A Personal Retirement Bond takes the pension fund away from the Trustees of your Previous Employers Pension Scheme and into a contract in your own name
- The Trustees signature or permission are no longer required for any dealings with the fund
- The need for you to stay in touch with your previous employer is now permanently removed
- All communication and information on the Personal Retirement Bond now goes directly to the you.
- You now have full control over what to invest your Personal Retirement Bond in.
- You now have full control of when you can cash in the pension (in accordance with pension rules)
- There are no difficulties for you, if the company and/or trustees cease to exist once the funds are in a Retirement Bond
- Most importantly, accessing benefits from the Retirement Bond does not require you to retire from a subsequent employment. It keeps all options open.
- Under a Personal Retirement Bond, you will have at least the same retirement options as were allowed by the rules of a purchasing Defined Contribution scheme
- The full value of the Personal Retirement Bond is payable to you estate on your death
So what do you do next?
If you have a pension from a previous employment, make contact with your Financial Adviser or me here at Peavoy Financial Planning and I will work through your specific situation with you.
I can be contacted on 087-2902206 or alternatively by email on david@peavoyfinancial.ie
David Peavoy BA, QFA, LIAP is the Owner of Peavoy Financial Planning whose practice is based in Office 5b, Portlaoise Enterprise Centre, Clonminam Business Park, Portlaoise, Co Laois.
David Peavoy T/A Peavoy Financial Planning is regulated by the Central Bank of Ireland
Disclaimer: All data and information provided within this blog is for information purposes only. It should not be taken as specific advice for your situation. Peavoy Financial Planning makes no representations as to the accuracy. completeness, or suitability of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its use
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