How do you check for eligibility for a Trivial Pension?
What is a Trivial Pension?
The Trivial Pension option is available to individuals who have a small pension fund they are looking to draw down and who do not satisfy the specified minimum income requirement at that time. Where applicable, it allows the full encashment (subject to tax) of the pension pot as an alternative to having to purchase a small annuity or invest in an Approved Minimum Retirement Fund (AMRF). This option can be offered to all occupational pension scheme members as well as those with Buy out Bonds (Personal Retirement Bonds), Personal Pensions and PRSAs.
Option 1 This option can be used where the balance of funds from all an individual’s pension arrangements is less than €30,000 and this is after the retirement lump sum(s) have been paid.
Option 2 If the annual pension provided by the total funds under all pension schemes related to the same employment does not exceed EUR 330 per annum then the balance of funds after the retirement lump sum has been paid can be fully encashed. Under this method that payment is subject to a non-refundable 10% tax.
A pension is a long-term investment. Its value can go down as well as up and could be worth less than was paid in. Laws and tax rules may change in the future.
We are available to discuss your options, and we look forward to hearing from you.
telephone | 091441188 and/or email | office@nelsonlife.ie
RETIREMENT & PENSIONS | INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE
Nelson Life Limited trading as Nelson life is regulated by the Central Bank of Ireland.
WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.