Can I Use my Pension From Previous Employment To Pay Off My Mortgage?

This is a question we are regularly asked and for many people the answer might be Yes. Have a look at the case study outlined below to learn more.

  • John is aged 51.
  • His previous employer was a large multinational that he left 4 years ago.
  • He had a Pension with his previous employer which is now valued at €400,000.
  • He has a mortgage of €100,000.
  • His mortgage repayments are €2,000 per month, with an interest rate of 2.45%
  • It will take him another 7 years to repay the mortgage with a total interest cost of €14,830.

So how does John use his Pension to help clear his mortgage ?

  • John can transfer his €400,000 Pension into a ‘Personal Retirement Bond’ which is held by him personally and not his previous employer.
  • As he is over 50 years of age and because he no longer works for his previous employer he is then allowed to access 25% of the €400,000 Pension as a tax free lump sum = €100,000
  • The other €300,000 at this point is invested into an ARF (Approved Retirement Fund), again held in Johns name, and continues to grow over the next 10 to 15 years until such time as John needs income or wants to retire.
  • John uses the €100,000 lump sum to clear his mortgage debt, saving himself €14,830 in interest payments.

If you would like to learn more about how we can help you possibly access your Pension from Previous Employment please get in touch 0n 01 5267770 or email 

Dublin: 01 5267770
Wexford: 053 9110380



These examples are for illustration purposes only

Past performance is not a reliable guide to future performance

The value of your investment may go down as well as up

There is no guarantee that the accumulated retirement fund will provide any specific level of retirement income