Welcome to HerMoney Support page where you will find calculators and helpful answers to your frequently asked questions.
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Here are some of the retirement planning frequently asked questions our team gets asked.
At what point does it make sense to convert a DB to a PRSA ?
Typically you would not transfer this type of retained pension benefit unless the company is at risk of being unable to fund the scheme.
Can I transfer private pensions?
Yes being the answer here but a Financial advisor can review all your private pensions and advise on the best plan depending on the findings.
Does the admin cost go up if I have multiple PRSAs ?
Every PRSA will have its own charge and this is based on the value of the PRSA but it will not be more
Can I transfer my PRB to a PRSA?
No, the pension authority rules do not allow for a PRB to be trasnferred into a PRSA.
If I moved to another EU country what are my options with PRSA’s? Can these be transferred to a PRSA equivalent in that country or are these locked in the fund until my retirement age?
It would be dependent on the state you are resident in and if they have a penion product that could accept the transfer from an Irish PRSA.
If I moved to another EU country what are my options with PRSA’s? Can these be transferred to a PRSA equivalent in that country or are these locked in the fund until my retirement age?
It would be dependent on the state you are resident in and if they have a penion product that could accept the transfer from an Irish PRSA.
What are ’defined benefit schemes’
A Defined Benefit pension scheme is set up by an employer to benefit an employee and represents a fixed payment each year that an employee will receive once they retire – their payment is defined. The amount of pension an employee receives in their pension pot is based on the amount of years they have been in employment and the salary that they received during this period. It is less and less common to see DB schemes, but they can be very valuable.
Does PRSA value have a risk of going down in value like any other pension?
Yes, like other pensions you are invested in funds which can decrease as well as increase in value
How do the PRSA new regulations apply to umbrella companies?
You can set up a 100% employer PRSA. The Revenue Maxium Fund limites do not apply. You have more scope on maxium your pension contributions throught the umbrealla company.
Does the 2 million limit apply to all of your PRSA’s? So if you had two schemes, the total maximum is 2 million ?
Yes, the total of all your pensions can only be 2 million.
Does the rule after 60 mean you could effectively fund the pension (perhaps instead of taking wages) to massively reduce monthly tax?
You can significally reduce the tax bill, however you do need to take a some salary from your company.
I’ve recently started contracting with only a few years left to retirement, is it worth investing at this age/stage?
Yes, there is tax relief available for you right up to retirement age.
Is there any way to draw down from Executive Pension after age 50 without having to cease working for the company ?
No, the two rule you need to satifify in order to access your executive pension early is that 1) you are over age 50 2) you have left the company and cut all ties with that company.
Does the Irish state pension (if it still exists at the time) have any impact on the 2M total ?
The State Pension entitlement is dependent on your social insurance contributions. Your state pension entitlement is separate to your private pension entitlement.
What is a good retirement fund? How do I work this out?
We recommended a retirement fund of at least €400,000. A financial advisor can help you to reach this target.
Can the company contribute whatever it likes?
Yes
Can the full tax relief be claimed in year of payment whether AP or SP?
Yes
Is the full fund payable to my estate on death?
Yes
Can I make one off contributions as well as regular contributions?
Yes
Can I cease, increase, or suspend contributions?
Yes
Can I fund again if I take benefits from 60?
Yes
Can I take benefits at age 60 without having to sell shares or retire?
Yes
Can I transfer my PRSA to several PRSAs at or before retirement?
Yes
Can I have different NRAs for different PRSAs within the same employment?
Yes
Can I defer taking benefits at NRA if I don’t need the money?
Yes
Can I fund a PRSA if I previously took benefits at NRA from a company scheme?
Yes
Can I get a 25% lump sum each time I access a PRSA?
Yes
