Changing jobs is an exciting step in your career, but it also raises important financial questions, especially when it comes to your pension. A common query we receive is from individuals who have left a company and want to move their existing pension into their own Personal Retirement Savings Account (PRSA) / Personal Retirement Bond (PRB).
Many people who leave an employer want to move their existing workplace pension into their own PRSA so they can continue managing their retirement savings independently.
If you find yourself in a similar situation, here is a helpful guide to understanding how pension transfers typically work.
1. Confirm Your Existing Pension Details
The first step is to identify the type of pension you held with your previous employer. This is usually an occupational pension scheme, such as a defined contribution (DC) scheme or defined benefit (DB) scheme. Your scheme administrator or HR department can provide the necessary details.
Important information includes:
• The name of the pension provider
• Your membership or policy number
• The current value of the fund
2. Decide Where You Want to Transfer Your Pension
Many people choose to transfer their pension into a PRSA / PRB because it allows them to maintain control of their retirement savings after leaving employment.
A PRSA can offer:
• Flexibility with future contributions
• Continued investment growth
• Consolidation of multiple pensions into one account
However, it is always wise to review the options available and seek financial advice if needed.
3. Complete the Required Transfer Forms
To begin the transfer process, the receiving provider (for example, the PRSA / PRB provider) will usually require:
• A pension transfer request form
• Identification documents (e.g photo ID and proof of address)
• Details of your existing pension scheme
In many cases, your new provider will contact the existing scheme administrator directly to arrange the transfer once these forms are submitted.
4. Provider-to-Provider Communication
Once the paperwork is complete, the two pension providers will communicate with each other to arrange the transfer of funds. This helps ensure the process is secure and compliant with pension regulations.
The timeframe for transfers can vary but typically takes several weeks depending on the scheme.
5. Review Your Investment Options
Once the pension transfer is complete, it is a good opportunity to review how your retirement savings are invested. Most PRSA’s / PRB’s offer a range of funds depending on your risk tolerance, retirement timeline, and financial goals.
Moving jobs doesn’t mean leaving your pension behind. Transferring your pension to a PRSA / PRB can help you maintain control of your retirement savings and keep everything organised in one place.
If you’re considering a pension transfer and are unsure where to start, speaking with a financial advisor or pension provider can help ensure the process is handled smoothly. Understanding your options today can make a significant difference to your financial security in the future.
If you would like guidance on transferring a pension or setting up a PRSA, feel free to contact Robin Murray or Tony O’Sullivan on 021 490 5000.