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Personal Retirement Bond Frequently Asked Questions
What is a Personal Retirement Bond?
A Personal Retirement Bond is a single premium pension account designed to receive a lump sum payment from your former employer’s occupational pension scheme.
Who can take out a Personal Retirement Bond?
A Personal Retirement Bond is available to individuals who hold retained benefits in an occupational pension scheme from a previous employment, or a scheme that is winding up.
Can I make contributions to my Personal Retirement Bond?
No. A Personal Retirement Bond is a single premium account which is designed solely to accept a transfer from an occupational pension scheme. No further contributions can be made.
Can I transfer from other pension providers?
Yes. Transfers can be accepted from other pension arrangements including:
- from other Personal Retirement Bonds approved by the Revenue Commissioners;
- from Occupational Pension Schemes approved by the Revenue Commissioners in line with scheme rules; and
- from Occupational Pension Schemes, PRSAs or Retirement Annuity contracts as a result of a Pension Adjustment Order.
Can I transfer my Personal Retirement Bond out of Davy?
Yes. The full value of your Personal Retirement Bond is available to transfer to another pension arrangement such as:
- Other Personal Retirement Bonds approved by the Revenue Commissioners;
- To the Trustees of another Occupational Pension Scheme approved by the Revenue Commissioners if you are now a Member of this scheme;
- To UK Statutory Schemes, UK exempt approved occupational pension schemes and UK personal pension arrangements only.
There are no charges for transferring your benefits out of the Personal Retirement Bond .
When can benefits be taken?
You can take benefits from the Normal Retirement Age of the transferring Occupational Pension Scheme/ Personal Retirement Bond (this can be from age 60 to age 70). In certain circumstances, you may be able to take retirement from age 50 or over if you retire from employment or if you can no longer work because of a serious illness or disability.
Note: Benefits must be taken under this contract at the same time as benefits are taken from any other schemes or contracts associated with the original occupational pension scheme.
What benefits are available when I retire?
The amount of your benefits on retirement depends on the transfer value paid into your Personal Retirement Bond , the investment return earned on your portfolio, and Revenue limits and restrictions.
The Davy Personal Retirement Bond offers flexible retirement options1 which are payable in accordance with the rules of the original occupational pension scheme from which benefits were transferred. You are entitled to take benefits in one of two ways:
Option 1
- A once-off lump sum of up to one and a half times final salary2 (based on your service with your previous employer); and
- The balance of the fund must be used to purchase an annuity.
Option 2
Note: This option is only available in respect of AVCs paid to the original occupational pension scheme, in respect of transfers from a Defined Contribution Scheme and for transfers from Defined Benefit Schemes where the contract holder was a Proprietary Director member of the original occupational pension scheme.
- A once-off lump sum of up to 25% of the value of the assets2; and
- The balance of the assets can be transferred to an Approved Retirement Fund (‘ARF’) in your name or taken as a lump sum liable to PAYE, subject to first complying with the requirements of Section 784C Taxes Consolidation Act 1997, as applicable to you at that time.
Note: It is a condition of approval by Revenue that benefits provided from this contract are subject to certain Revenue maximum benefit limits as applies to the occupational scheme or arrangement from which benefits were transferred.
1 Please see ‘Standard Fund Threshold’ in the Davy Personal Retirement Bond pack for further details.
2 Please see ‘Taxation of Retirement Lump Sum’ in the Davy Personal Retirement Bond Application pack for further details. Please call
What benefits are payable on my death?
In the event of your death before you take benefits from the Personal Retirement Bond , the full value of your portfolio at the date of payment will be transferred to your estate but may be subject to Inheritance Tax in the hands of your beneficiaries where inherited by a beneficiary who is not your spouse or civil partner at the date of your death.
The death benefits payable will be based on the value of your Personal Retirement Bond at the date of payment. The date of payment is dependent upon factors such as the date the probate is issued and the benefits payable may be more or less than the value of your Personal Retirement Bond at the date of death.
What are the charges?
- There are no set up charges
- There are no transfer charges
There will be
- For Davy Select Execution-Only accounts, an annual dealing charge for any number of transactions. This may be subject to overseas charges for non-Irish/non-UK listed instruments.
In all cases, other charges apply.
Please click here for more information on fees and charges.
Are there risks associated with the Personal Retirement Bond?
Yes, there are risks associated with all investments. For more information about the risks that prospective investors should consider prior to making a decision to invest in a pension product, please read Risks When Investing in Pension Products.
Please refer to the Davy Personal Retirement Bond Application pack for further details. Please call
Warning: This website does not constitute investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any particular person or persons. Prospective investors are advised to make their own assessment of the information contained herein and obtain professional advice suitable to their own individual circumstances.