Retirement Planning

Changing jobs – don’t leave your pension behind

On leaving service you are entitled to a statement of options regarding what you can and cannot do with your accumulated pension. You will receive this statement from the administrators of your pension scheme.
 
Your options are as follows:
a.
b.
c.
​d.
Leave your fund where it is until retirement
Transfer your benefit to a PRSA
Transfer to a personal retirement bond
Transfer to  another approved occupational pension plan or an overseas pension plan (subject to certain conditions)
Pension law in Ireland allows you to take control of your money instead of leaving it in the hands of your old employer this is known as a Personal Retirement Bond (PRB).

Leaving your accumulated fund with a previous employer, you will have to contact the scheme trustees to access it at retirement. This could be challenging if the company no longer trades or if you have forgotten whether you had a pension with that company or not. 

Not only that but you will be handing over full control of the investment choice and the risks taken with your retirement fund to someone else – your prior employer. When you transfer your accumulated fund into a Personal retirement bond you will regain full control of your fund and in doing so also take control of the charges, the risks and the retirement age. At this stage it is important that you obtain an independent advisor. You will need to ensure you engage someone you can trust and like as this will be a long term relationship. You will need regular reviews that you both ensure you reach your retirement goals. You must ensure you ask and understand the charging structure that  the advisor offers.

Some individuals will transfer their old employer pension to their new employment but this is not always wise as your pension is private and some individuals do not want their new employer to know of accumulated benefits. If you do transfer, the rules of your new scheme would then apply which may not suit your changed circumstances.

In some instances it will be more beneficial to leave your pension fund with your employer – however, advice here is essential. 
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More and more people are choosing to control their pensions and receive independent financial advice.