Switching jobs?
When you switch jobs your pension options change too. This makes it an ideal opportunity to review your pension provision, take stock of where you are and implement some changes.
Typically, you’ll have three options for your pension fund when you leave your job.
- You can do nothing.
- You can move it into the pension that comes with your new job.
- Or, you can move it away from your previous employer and into an account in your own name, known as a Personal Retirement Bond (PRB). You keep all the tax benefits of a pension and cut the link with your old employer.
However, everyone’s circumstances are different and there may be additional pension options for you if you’re leaving your job. That’s why, it’s worth talking to a Rockwell Financial Planner to ensure you make the most of your specific situation.
A PRB gives you full control over your investment choices, provides transparent pricing and regular updates, and ensures access to ongoing financial advice for managing your pension.
It’s easy to lose track of old pensions if you leave your job without taking your pension with you. What’s more, it can be hard to get regular information on it performance, or to make changes to it. That’s why many people choose to transfer their pension funds when they change jobs.
A PRB provides you with full ownership of your pension, allowing you to manage it on your terms.
You can transfer your pension benefits into a PRB if:
- You’re leaving your current job.
- You’re exiting your company’s pension scheme.
- Your company pension scheme is winding up.
Why Consider a PRB?
- Control: Take full personal control of your pension savings.
- Choice: Decide how and where your money is invested.
- Growth: Enjoy tax-free growth on your investment returns.
Benefits of PRBs
Flexibility of Withdrawals
- PRBs provide flexibility when it comes to accessing your retirement savings. While your funds are generally available at retirement age, a PRB can be accessed for age 50. If retiring early is a priority, or you have good use for a lump sum, this is s smart way to do it. Alternatively, you can keep your money in its tax-free PRB until age 70 if you wish, even if your old company retirement day is earlier.
- By keeping pensions from your old jobs separate from your new one, you increase your option for income in retirement. For example, you could access one pension pot in your early fifties, another (say your main pension fund) when you actually retire from the workforce, and others by age 70.
Tax Benefits on Retirement
PRBs after significant tax advantages. At retirement, you can take a portion of your PRB as a tax-free lump sum (up to approved limits), with the remaining balance available for investment in approved retirement funds or annuities. This structure ensures your savings work harder for you while minimising tax exposure.
Portability
A PRB adapts to life’s changes. Whether you switch careers, move abroad, or decide to consolidate your pensions, PRBs are portable and can be easily transferred into another suitable retirement vehicle. This ensures long-term flexibility and continued control over your savings.
Comparison to Other Pension Options
- Unlike PRSAs (Personal Retirement Savings Accounts), PRBs allow you to transfer benefits from occupational pension schemes while offering greater investment choice and control.
- Compared to ARFs (Approved Retirement Funds), which are used post-retirement, PRBs are designed specifically for pre-retirement savings, making them ideal for consolidating and growing your pension before accessing it.
Take Control of Your Pension
A pension remains one of the most tax-efficient ways to save and invest in Ireland. However, setting it up correctly is essential to maximising its value.
At Rockwell, we make pension planning effortless. From crafting the right investment strategy to balancing risk and reward, we handle all the complexities for you. Our goal is to help you optimise you hard-earned savings and make confident decisions about your retirement.
Let us simplify the process and create a retirement plan that’s clear, efficient, and tailored to your needs.
Book a Complimentary Consultation today and start your journey to a better retirement. (Contact form)
Take Control of Your Pension
A pension remains one of the most tax-efficient ways to save and invest in Ireland. However, setting it up correctly is essential to maximising its value.
At Rockwell, we make pension planning effortless. From crafting the right investment strategy to balancing risk and reward, we handle all the complexities for you. Our goal is to help you optimise you hard-earned savings and make confident decisions about your retirement.
Let us simplify the process and create a retirement plan that’s clear, efficient, and tailored to your needs.
Book a Complimentary Consultation today and start your journey to a better retirement. (Contact form)
Frequently Asked Questions
What happens if I move abroad after setting up a PRB?
If you have move abroad, your PRB remains intact and under your control. PRBs are highly flexible, and your savings can continue to grow regardless of your location. At retirement, you can access the funds just as you would if you remained in Ireland, though taxation on withdrawals will depend on both Irish tax laws and the tax regulations in your new country of residence. We recommend consulting with a tax advisor to understand any implications of accessing your PRB while living abroad.
Can I transfer multiple pensions into one PRB?
Typically, each pension scheme is transferred into its own PRB. This is because PRBs are designed the reflect the specific benefits accrued in each individual pension scheme. However, you manage multiple PRBs as part of your overall retirement planning strategy. If consolidation is a priority for you, we can explore other pension options that might align better with your goals.
Looking to get up to date information on pensions from previous? We are here to hep.
You can take control of pensions from jobs you left years ago. With just a few key details, we can help track down your old pensions and get them working harder for you.
