The benefits accrued in your deferred company pension are ultimately an asset to the beneficial owner.
By transferring the capital value of your Defined Benefit Pension Scheme you can:
Take ownership of your Deferred Company Pension
You do not have to leave your pension under the control of your previous employer. If you have Pension Benefits which are currently “paid up” with a previous employer or with a Company who are no longer trading – you can switch these funds out of their current Pension Fund and into a Pension plan in your own name. By doing this, you get to take ownership of your pension. Now, you choose the provider, the investments and how the funds will be invested as well as when and how you will drawdown the funds.
Avoid possible pension insolvency in Defined benefit Scheme
As well as the advantages of a Defined Benefit Scheme, there are also some risks such as the Trustees could reduce the benefits, the scheme could wind up with a deficit before you reach the retirement age. The Transfer value may be a true reflection of what you may actually get from the scheme.
Access 30% of your Pension from Age 50:
As an EU citizen, you are entitled to open a pension plan in another European Country and transfer your existing retirement benefits to this scheme. In certain EU jurisdictions you can access up to 30% of the transfer fund as a Pension Commencement Lump Sum from Age 50.
Once the funds are remitted back to Ireland, they are treated as a capital payment and subject to the same tax free limits that apply to Irish pensions. The balance of funds remain invested in the trust with future drawdown taxes as income.
No requirement to purchase annuity:
Due to decreased bond yields and increased longevity, Annuity rates are not what they once were. Some jurisdictions such as Malta do not require the beneficiary to purchase an annuity following a Pension Commencement Lump Sum (up to 30%). The balance remains in the scheme and can be invested, drawn down or both. Withdrawals from the scheme can commence at age 50 and must commence by age 70.
Extremely wide Investment Choice:
One of the biggest advantages to an International Pension is the investment flexibility. You can now have access to International Fund Managers and Global Investment Funds. You can also appoint an investment advisor to make the decisions with you. The scheme trustees will ensure that the scheme investments are properly managed.
Fund Value can be passed to spouse or estate on death:
Under the rules of some International Pensions, the fund value on upon death forms part of the estate of the deceased. Where the deceased or beneficiary are resident in Ireland, Irish Inheritance Tax will apply. In Ireland, inheritance is completely exempt between spouses.