Life doesn’t stop just because work does. So kick-start your new way of living by taking a lump sum from your pension fund.
You have worked hard and built up your pension fund. Now that you are ready to retire, you probably have plans to take that trip of a lifetime or maybe go back to education.
No matter what type of pension you have, you have the option of withdrawing a lump sum as soon as you retire.
How much can I take?
It depends on your pension. Different types of pensions have different rules as to how much you can take as a lump sum.
If your pension is arranged through your employer you may be able to take up to one and a half times your final salary as a lump sum, depending on how long you worked there.
Some company pensions and all personal pensions will give you the option of taking 25% of the value of your fund as a cash lump sum.
The good news is that some or all of your lump sum will be tax-free. You won’t have to pay tax on the first €200,000. Anything over that amount will be taxed at various rates.