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Retirement bonds

If you find yourself in a scenario where you are leaving your job, you might be asked what would like to do with the pension benefits you have accumulated with that employer. Buy out Bonds or Personal Retirement Bonds are a pension option you may want to consider.

A Buy-Out / Retirement Bond is a standalone pension contract or bond in which you invest the accumulated personal pension monies with a life company (either the existing company or a new one) in your own name and where you are now responsible for the investment decisions associated with this bond / pension fund.

It should be noted that a retirement bond is transferable and that once issued it can be moved from one life company to another, prior to retirement. Therefore if you are unhappy with the performance or the terms of your bond you can move it to another provider. Please note though that there may be encashment penalties within the first five years of setting up the bond and this should be checked prior to making any switches

Are there any drawbacks?

Like any decision you should be aware of the following:

  • There may be an element of risk associated with the investment so seek professional advice
  • Whilst there may be enticements to enter a particular deal with a life company i.e. enhanced allocation make sure you know what the early encashment penalties are

What are the advantages?

  • You are in control of the investment and the investment choices
  • You can choose from a variety of providers
  • There are some very strong deals out there (based on years to retirement) that include increased allocations and low annual management charges
  • At any stage in the future you can move this into a company/executive scheme
  • You can access to or retire the monies once you have left that employment from the age of 50 on and can then use the proceeds of the Retirement Bond to provide retirement benefits.

All Financials pensions plans:

Company pensions
A Company Pension is set up under a Trust by a company to provide retirement benefits for those included within it.

Company pensions
Executive pensions
Executive Pension Plans are taken out by Company Directors or Employers to provide for the Retirement of executives and key employees.

Executive pensions
In order to simplify personal pensions the Government introduced PRSAs.


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Warning: Past performance is not a reliable guide to future performance.

Warning: This product may be affected by changes in currency exchange rates.

Warning: The value of your investment may go down as well as up.

Warning: If you invest in this product you may lose some or all of the money you invested.