If you are leaving (or have left) employment, or your scheme is winding up, you may have the option of setting up a Retirement Bond into which you can transfer your existing pension benefits.
What is a Retirement Bond?
A Retirement Bond is a single premium, tax efficient defined contribution investment account effected by the trustees of an occupational pension scheme on behalf of a scheme member that is leaving service or when the scheme is winding up, in lieu of providing a preserved benefit under the scheme for that member. A retirement bond is available from a life company.
- It is set up as a single premium contract solely to receive a transfer from an existing occupational pension scheme:
- No further contributions can be paid by you or your employer
- Tax-free investment returns:
- No Capital Gains Tax when you sell your assets
- No Exit Tax when you exit a third party investment fund
- No Income Tax on dividends or coupon payments
- Flexible benefits at retirement which include:
- A lump sum
- An annuity and/or
- A transfer to an Approved Retirement Fund
The Davy Retirement Bond Service
The Davy Retirement Bond is approved by the Irish Revenue Commissioners and is issued under an insurance contract provided by New Ireland Assurance with Davy as Investment Manager.
Click here to learn more about the risks that prospective investors should consider prior to making a decision to invest in a pension or retirement product.
Warning: The value of your investment may go down as well as up