Once you turn 50 years old you can begin to make decisions as to how to get the best from the pension you have built up over your years in private employment.
This includes an option to begin cashing in your pension – once you have generated a pension with an old employer, an executive pension or a PRSA.
Should you want to withdraw from your pension pot, some people will have access to a 25 per cent pension tax-free lump sum. This relates to anyone over the age of 65.
These exemption limits when it comes to tax allow people over the age of 65 to earn income up to a certain level before they face an extra tax.
At current, it is possible to draw down a maximum lump sum of €200,000 tax-free. This is a lifetime limit regardless of whether the pension is taken at different times or under different agreements.