Switching jobs can be an exciting opportunity for career growth, but it also raises questions about what to do with your pension. Understanding your options can protect your retirement savings, minimize fees, and keep your future secure. Here’s everything you need to know about pension transfers when changing jobs in Ireland.
When you change jobs, your pension savings with your previous employer don’t automatically transfer. However, you have the choice to either leave your pension with your former employer, transfer it to your new employer’s scheme, move it to a PRSA, or consolidate it in a PRB.
If you’re leaving a job with an employer-sponsored scheme, transferring benefits from an occupational pension into a PRSA or PRB can offer more flexibility and control.
Transferring your pension when you change jobs has several benefits:
Our financial advisors at Smart Financial can help assess your options, calculate potential costs, and choose the best transfer route.
Managing multiple pensions can be challenging, especially if you’ve held various positions across different companies. Consolidating your pensions brings significant advantages.
Here’s a look at the key benefits:
Consolidating pensions also simplifies eventual drawdown options like an ARF, which can give you post-retirement income control and tax efficiency.
Mark worked for five years at a tech company in Dublin, accumulating €50,000 in his company pension. Upon accepting a new role in a different sector, he wanted to avoid the potential fees of leaving his pension with his former employer. Mark transferred his pension to a PRB. Here’s how it benefitted him:
Transferring a pension may involve fees, depending on your existing scheme. Here are some typical costs:
For example, a pension fund worth €50,000 with an exit fee of 1% would incur a €500 cost if moved out early. Our team at Smart Financial will calculate and advise on any charges, helping you make the most cost-effective decision.
If you’re moving into self-employment, there are retirement savings options for self-employed individuals that offer tax relief and flexibility, including PRSAs and personal pensions.
At Smart Financial, we’re committed to making pension transfers easy, transparent, and affordable. Reach out today to speak with one of our advisors, who will guide you through your options, calculate any fees, and help you secure your retirement savings as you embark on your new career path. Book a consultation today!
Annuities are a popular option among retirees seeking a stable and predictable income stream.
An Approved Retirement Fund (ARF) is an innovative financial product designed to help retirees manage their pension savings efficiently.
A personal pension, also known as a Retirement Annuity Contract (RAC) is designed to empower self-employed individuals or those without employer-sponsored pensions to take control of their retirement savings independently.
A Personal Retirement Bond (PRB), commonly known as a Buyout Bond, offers flexibility for those leaving an employer pension scheme.
For many in Ireland, the option to withdraw a tax-free lump sum from a pension pot at retirement is an attractive one.
If you've worked in the UK and accumulated pension benefits, transferring these funds to Ireland can offer a range of financial advantages.
Absolutely! One of the unique benefits of a self-administered pension is the ability to invest in property, be it commercial or residential.
Occupational pensions are pension schemes offered by employers to provide employees with an additional source of retirement income.
Boosting your pension with AVCs is a highly tax-efficient way to increase your retirement fund, especially if you are a member of an occupational pension scheme.
At Smart Financial, we specialise in helping company directors optimize their pension strategies for long-term financial security and effective tax savings.
Pension planning is often neglected due to business priorities, yet securing retirement is just as crucial. Without an employer-sponsored pension, it's your responsibility to build retirement savings.
A Personal Retirement Savings Account (PRSA) is a flexible, portable pension plan that works for everyone, including employees, the self-employed, and part-time workers.
At Smart Financial, we offer tailored pension solutions to suit your needs. Let our experts help you navigate the complexities of pensions and retirement planning. Schedule a consultation with one of our advisors today!.
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Yes, but this may not be the most cost-effective option. Leaving your pension with a former employer’s scheme could mean higher fees or restricted investment options. A transfer can often help reduce these costs and give you more control.
While both options offer control over your retirement savings, a PRSA is more flexible, allowing you to transfer funds multiple times. In contrast, a PRB typically only allows a one-time transfer but offers similar control and investment options.
On average, a pension transfer in Ireland can take between 4–12 weeks. This timeframe depends on the type of transfer, the previous employer’s scheme, and the receiving pension provider’s process.
Some pension schemes have exit fees or other charges. It’s essential to understand these fees before deciding on a transfer. At Smart Financial, we assess your current scheme to help you make an informed decision.
No, employer contributions already made into your pension remain in your pension pot. However, if your previous employer was matching contributions, you may not receive additional contributions once you leave the scheme.
No, pensions in Ireland must remain within approved pension schemes to benefit from tax relief. You cannot transfer a pension directly to a personal bank account.
In most cases, transferring a pension within approved schemes (e.g., to a PRSA or PRB) has no immediate tax implications. However, if you choose to withdraw funds from a pension early, this may incur tax liabilities.
