Allows you to bring your pension benefits with you, if you leave service and have been a member of a Employer Contributory Pension scheme.
What is a PRB ?
A Personal Retirement Bond (PRB) is a personal policy that is set up by trustees of a pension scheme to provide retirement benefits for a former member of the scheme. It basically means that if you leave a pension scheme, you can bring your pension benefits with you by having the value of your fund invested in a bond.
How does it work ?
When you've decided to set up a Personal Retirement Bond, the next step is choosing how best to invest the money you have. We can invest it in one or more of our range of unit-linked investment funds. You'll have access to a wide range of different assets, and varying degrees of risk, so you'll be sure to find a solution that works for you.
When you retire you can decide how you would like to benefit from your PRB. Subject to revenue rules at the time, you may decide to receive part as a lump sum. The remainder of your fund can then be invested in an Annuity or Approved (Minimum) Retirement Fund A(M)RF.
What PRBs mean for you
Control - You can take personal control of your pension when you move jobs.
Choice - You choose the funds that your money is invested in.
Growth - Any investment growth is tax-free.
Who is this product for ?
If you're planning to leave the company you currently work for, and you're part of the group pension plan, a PRB could be a great option for you. A PRB will also be suitable if you decide to leave a company pension scheme for any other reason, or if the scheme is winding down.
When it comes to your retirement, you've plenty of options.
How do I start receiving my pension ?
-Before you start receiving your pension payments you'll need to decide how you would like these payments to be made. You could decide to receive your pension as an,
Approved Retirement Fund (ARF), which allows you to reinvest your pension subject to minimum requirements.
Annuity, which pays you a regular income from your pension fund.
Our Financial Planning Team can explain more about these, call them on 1850 804 164.
Early retirement takes careful planning. While there is no mandatory retirement age in Ireland, your employment contract may state when you can take early retirement. Employees who plan on retiring early may need to build up a larger fund to help them through those additional years of retirement. Usually, the minimum age at which you can start receiving pension contributions is 50.
With an Annuity you will receive a regular income for the rest of your life. Annuities may be more suited for people who wish to avoid potential risks, and would prefer a guaranteed income for their retirement. There are three choices you need to make when purchasing an Annuity:
Single Life or Joint Life
A Single Life Annuity is payable for the rest of your life only. With a Joint Life Annuity, a percentage of your pension is payable to your spouse after you die.
If you choose to include a guaranteed period, your pension will be payable for a minimum of the guaranteed period, even if you die during that time.
Escalating or Level
A Level Annuity means your payments remain the same throughout your life. An Escalating Annuity means your payments increase at a fixed rate each year.