Why You Should Have a Personal Retirement Bond?
A personal retirement bond, which is also called a PRB or a retirement bond, is a type of pension.
You will normally set up a personal retirement bond in your own name in the following circumstances:
- You have a pension from a previous job and you now want to move this pension away from the previous employer and into a pension in your own name.
- You have a pension in the UK, you now live in Ireland, and you want to move your UK pension into a pension in Ireland in your own name.
- You have a defined benefit pension from a previous employment in Ireland or the UK and you want to move away from the defined benefit pension into your own pension in Ireland.
The personal retirement bond is a great type of pension to have for the following reasons:
- It is in your own name and you can make your own decisions on where the money is invested.
- You can log into your PRB online and get up to date information on values and performance whenever you want.
- If you want to make any changes to your personal retirement bond or if you want to get cash out of it, then you can do so without having to go through your previous employer.
- From age 50 (from age 55 where the PRB came from a UK pension), you can normally receive a tax free lump sum out of a PRB of 25% of its value.
- In the event of your death your PRB passes to your spouse or children. This is always the case for some other types of pensions.
This article provides some simplified advice on PRB’s. Please make sure to get advice from a financial advisor before you make any decisions about your PRB.
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Jim has been providing tax, pension/investment and lifetime financial planning advice to clients for over 30 years. He has an in-depth understanding of Business Owners and their requirements, which allows him to guide his clients through the complex world of long-term financial planning.