I am approaching retirement, what's
next?
It's finally time to retire and deciding how to draw down your
pension benefits can be a little bit daunting! The options
available to you will depend on the type of pension scheme you
have, but generally the following are the four main options that
are available when retiring:
Tax Free Lump Sump
You should be entitled to a tax free lump sum at
retirement. The amount payable depends on your salary and your
service with your company, this Tax Lump sum could potentially
amount to 1½ times your salary. Alternatively, you might be able to
take 25% of your pension fund if that will give you a higher lump
sum amount. The maximum tax-free lump sum you can receive is capped
at €200,000.
Taxable Cash
If you only have a small fund left after taking tax-free cash, you
may be able to take the balance of your pension fund as a single
taxable payment. This will depend on the value of your funds and
whether you hold other pension benefits.
Annual Pension (Annuity)
An Annuity is a guaranteed income for life, which would be
purchased with the balance of you funds after taking your Tax Free
Lump Sum. The amount of your pension will depend on your age and
how much your pension fund is worth. Annuities are payable for your
lifetime so give you security of income throughout your retirement.
You may also provide for spouses or dependants pensions to be
payable in the event of your death, or for your pension to increase
each year during retirement.
Approved Retirement Fund (ARF) / Approved Minimum
Retirement Fund (AMRF)
You may be entitled to invest some of your pension fund in an
Approved Retirement Fund after retirement instead of buying an
annuity. This gives you more control of how and when you access
your funds and how they are invested after retirement. It is a
flexible way to control your regular income, as you need it. There
are certain restrictions before you can use this option:
- Having a guaranteed pension income for life of at least €18,000
per year (which can include your State benefit) OR
- Investing €119,800 into an AMRF (which cannot be accessed until
you are age 75)
For an outline on how all these options interact, see our Employees
Flexible Retirement Options document.
If you would more information on your retirement options please
contact your scheme Administrator or Client Services Manager or
send us an e-mail to corporate@invesco.ie.
Back to Employee Information
Services Home
