Retirement Planning

Options at retirement:

When can I retire?

You can start to draw your State Pension on your 65th birthday – unless you are still working at that time, in which case you can draw it from your 66th birthday. If you have a PRSA or Personal Pension, you will be able to start drawing your benefits at any time between your 60th or 75th birthdays. If you are in a Company Pension Scheme, you will have agreed the date of your retirement with the company when you originally joined the scheme. This will typically be your 60th or 65th birthday.

What if I want to retire ‘early’?

That depends on the type of pension you are in. If you are an employee included in your company pension scheme, it may allow you to retire at age 50 with your employer’s agreement. However, if you are self-employed and have a PRSA or a Personal Pension Plan, you normally cannot retire until after age 60.

What should I do if retirement is approaching?

As you come within the last 5/10 years of retirement, you should be closely following the fund performance and moving into more secure funds. McGeough Financial Services can advise you on this and would monitor your fund performance and choice on an ongoing basis to ensure that you are not overly exposed in the final years of investing. This is a crucial time to pay serious attention to your pension planning.

What happens when I retire?

When you retire the value of your pension pot will be used to provide you with your retirement benefits.

Your Tax-Free Cash

You will be able to draw some of the money immediately, as a tax-free cash sum.

The annuity option

The balance of the money will usually be used to provide you with a guaranteed income for the rest of your life. You may, if you wish, choose an alternative pension that:

Increases each year at a set rate to help offset the effects of inflation and/of Continues at a reduced rate, after your death, to your wife or husband.

How does an annuity work?

An annuity is a special type of insurance policy under which you put in a lump sum at the beginning (the money from your ‘pension pot’) and receive regular payments of income (your pension) for the rest of your life.

You should note that the size of your pension will depend on your age when you retire, the pension option that you choose – and the prevailing level of interest rates. You will normally be allowed to buy your annuity from any authorised insurance company in the country so it will be well worth ‘shopping around’ to get the best possible terms. McGeough Financial Services will provide this service to you to ensure that you get the best rate in the market.

Are there any other options?

Yes, you will be able to invest the money in an Approved Retirement Fund (ARF) provided that your ‘pension pot’ has been built up in specific type of arrangements. Please click here to read information on ARF’s.