In many cases you can cash in your Irish life pension early, but only under certain circumstances. The options available differ depending on the type of plan initially taken out with Irish Life.
The value of the pension fund may not be at the expected amount if left until normal retirement age. There may also be tax implications.
Irish life PRSA holders
Investors with a PRSA can withdraw money from their fund at age 50, if they have stopped PAYE employment or self-employed work. From age 60 to 75, money can be withdrawn without the need to retire fully.
PRSA holders with a fund of less than €650 and who have not made a contribution in over two years can take money from the plan.
Irish life Company pension plan holders
The situation with an Irish life company pension plan holder is a bit more complicated. Usually, contributors cannot access the saved money until reaching retirement age, 65 years in Ireland.
In certain cases, the trustees may allow access to employees who wish to retire from 50 onwards and finish with all PAYE employment.
If an employee suffers from ill health and cannot work, arrangements can be made for them to retire once they turn 50.
Irish Life AVCs
As an AVC is part of an agreed pension plan, it is only possible to access the funds on retirement. The usual rules apply, but, as in the cases above, you may be allowed to cash in the AVC value under certain circumstances.