Expertise
Michael O' Connor is an experienced senior financial advisor specialising in retirement planning and tax-efficient strategies for early pension access. With over 15 years of expertise, he helps clients maximise their pension benefits while ensuring long-term financial security. Michael is known for his personalised, strategic advice tailored to individual needs and life circumstances.
4 STEPS TO UNLOCK YOUR PENSION
DISCLAIMER: Each case is unique and requires in-depth scrutiny in order to assertain feasibility and options.
Assess Eligibility for Early Retirement
We’ll begin by evaluating your pension plan to determine if early access is permitted. For personal pensions or PRSAs, we’ll explore the option to retire as early as age 60. If you have an occupational pension, we’ll examine the criteria for early access based on employment termination after age 50.
Explore Ill-Health Early Retirement Options
Validated by your doctor's reports you may be allowed to access your pension without waiting until the standard retirement age.
Maximise Tax-Free Lump Sum Withdrawal
Upon unlocking your pension, we’ll guide you in withdrawing up to 25% of your pension fund as a lump sum tax free if you wish. The cap on the first 25% tax free is €200,000. After €200,000 and up to €500,000 the tax is 20%.
Optimise Post-Retirement Income
After accessing your lump sum, we’ll help you decide whether to purchase an annuity for guaranteed income or transfer the remaining funds into an Approved Retirement Fund (ARF). We’ll tailor the strategy to your financial goals, providing flexibility in managing your funds while considering tax-efficient withdrawal options. Imputed distribution at age 61 means you will be taxed on 4% of your ARF. So managing your allocation properly is very important.
Testimonials
"Michael was so helpful and quickly got to work on my behalf ..."
As I was made redundant from a company that I had worked for 10 years with, I had plenty of questions of the best way to move forward with my finances and pension plans. This was quite an overwhelming time for me and I put off a lot of difficult questions but I finally did got around to addressing my pension and I was put in touch with Michael, I can honestly say that I needn’t have worried or delayed my decisions with regards to my pension fund as Michael was so helpful and quickly got to work on my behalf.
In the space of a few weeks, Michael personally met me and walked me through my options. I was relieved to have met him and was delighted to sort my finances out so that I could move forward and onwards.
Thanks again.
Kind regards,
Phil
"It is comforting to know now that my pension is in good hands now ..."
Hi Michael,
Just wanted to send an email to say Thank You.
Thank You for all your advice and helping me to take control of my Pension.
You explained everything in detail and answered all the questions that I had.
It is comforting to know now that my pension is in good hands now.
Kind Regards
Kirk Sweeney
"Michael is terrific to work with throughout the whole process ..."
Michael is terrific to work with throughout the whole process. From setting up my pension, to regular check ins, to honest advice helping me make decisions. The personal touch he adds makes all the difference. Knowing that Michael is looking after things for me gives me great peace of mind.
Thanks,
Conor
Frequently Asked Questions
Frequently asked questions based on typical concerns people have about early pension access in Ireland
Can I access my pension before the retirement age?
Yes, provided you meet a certain criteria, our occupational or defined benefit is paid up and you are no longer in that occupation. Early access is possible, typically after age 50 or in cases of ill-health.
How much of my pension can I withdraw early?
The first 25% of your pension can be taken as a lump sum, up to €200,000 tax-free.
Is my entire pension accessible early if I am unwell?
On the report of your Doctor Early access due to ill-health is permitted, but medical certification is required.
Can I still receive tax-free benefits if I retire early?
Yes,the first 25% and up to the first €200,000 of your lump sum withdrawal is tax-free, even with early retirement.
What happens to the rest of my pension after I take the lump sum?
You can either buy an annuity or invest in an Approved Retirement Fund (ARF).
Is there flexibility in how I use my pension funds after early withdrawal?
Yes, you can decide between taking an annuity or managing your funds via an ARF.
Can I still contribute to my pension after accessing it early?
No when you mature a pension it stands alone, however you are more than entitled to pay into another separate pension in some cases.
Do I need a financial advisor to access my pension early?
While not mandatory, it’s highly recommended to consult an advisor for tax efficiency and understanding. A financial Advisor will explain everything about each individual pension and make the path forward very clear.
What is an Approved Retirement Fund (ARF)?
An ARF allows you to invest your pension funds and potentially grow with compounding interest so it can last you without bombing out into late retirement.
What happens to my pension if I die before retirement?
An ARF goes to your estate tax free. You must put a rendition on your annuity for it to go to your estate.
What is the earliest age I can retire?
Statutory retirement age is 66. Typically, 50 years old is the minimum age for early retirement.from certain pensions. RAC and PRSA’s retire at age 60.
Is there any penalty for early pension withdrawal?
There are tax implications on funds withdrawn beyond the tax-free limits.
What is a PRSA, and can I access it early?
A PRSA (Personal Retirement Savings Account) allows early access from age 60.
How can I access my occupational pension early?
If you leave employment after age 50, you may access your occupational pension.
What are the conditions for accessing a pension due to serious illness?
Medical proof of incapacity for work in total, meaning unable to complete any sort of work to create an income, is required to access pensions on ill-health grounds.
What happens if I have more than one pension?
You may combine pensions or access them separately based on individual rules. They will all end up in a single ARF/Annuity.
What is the tax treatment of my pension after early withdrawal?
Withdrawals beyond the lump sum are subject to standard income tax. If you are fortunate enough to maximise your tax free lump sum and receive the first €200,000 tax free the next €300,000 is taxed at 20%.
How long does it take to access my pension early?
Processing times vary depending on your pension provider and circumstances generally 6 to 8 weeks sometime faster however not that often.
Can I access my pension if I leave Ireland?
Yes, but tax rules may vary depending on your residency status.
Can I transfer my pension to another scheme before accessing it?
Yes, you may transfer your pension to another qualifying scheme.This may or may not be to your advantage. Take the advice of a Financial Advisor.