Revenue recently announced changes to retirement options for people with Personal Retirement Bond (PRB) on a Defined Benefit Scheme, giving them access to the same options as people with PRBs from Defined Contribution schemes.
The changes mean that anyone with a PRB can now access a number of retirement options. On retirement, all PRB holders can now draw down a lump sum of up to 25% and then choose to either
- invest the remaining amount in an Approved Retirement Fund (ARF) or an Approved Minimum Retirement Fund (AMRF)
- or opt to purchase an annuity.
The changes provide a much greater degree of flexibility for PRB holders on a Defined Benefit Scheme who previously would have only been able to access their pension by taking a lump sum based on their salary and service and using the remainder to buy an annuity.
Not sure about your pension entitlements?
If you have ever worked for a company that paid into a pension fund on your behalf for two or more years, you have a legal entitlement to the value contributed.
Leaving the employer doesn’t mean losing your entitlement and it is in your best interests to trace your pension entitlements – even a small amount now can make a significant difference to your pension in retirement.
You have the option to transfer your pension contributions from previous schemes but speak to your financial advisor first. Transferring your pension benefits may not always be the best option so your financial advisor can help you understand how to optimise your entitlements.
This blog post appeared first on the Hennelly Finance blog.