Is it Possible to Withdraw Pension Early?

Early Pension Withdrawal Ireland

This article is for those wondering is it possible to withdraw a pension early in Ireland.

 

We will discuss the three situations in which early pension withdrawal is possible.

 

However, this article will provide a general overview only. 

 

For more detailed information you will find links to other articles on our site for each situation. This allows you to get the information specific to your situation easily. 

At A Glance

What is Early Pension Withdrawal?

Early pension withdrawal involves accessing some or all of your pension funds before the usual withdrawal age.

 

The age at which retirement benefits become available is set by your employer or pension provider and is known as the retirement age of your scheme.

 

In Ireland, the retirement age for pension schemes typically starts at age 60, with most schemes setting the retirement age at either 65 or 66.

 
 
 

Can You Withdraw Your Pension Early?

Yes, you can withdraw your pension early in Ireland in the following situations. 

Ill Health Retirement

Hand moving small wooden blocks with medical symbols such as a heart, a pill and blood pressure.

If you are ill and cannot return to work in your normal occupation, you may be able to withdraw your pension early on ill health grounds.

 

You will need to provide medical evidence showing that you are permanently unable to return to work in your occupation. 

 

Your pension provider will only process ill health retirement claims with strong medical evidence supporting your application.

 

Temporary illnesses do not qualify for early access to your pension funds.

 

If you are considering early pension withdrawal due to ill health, you should speak to an independent financial advisor.

 

They can advocate on your behalf with the pension provider and help you withdraw your pension early.

 

An independent financial advisor can also provide information on reinvestment options to ensure a regular income and extend the lifetime value of your pension.

 

Additionally, they can assist in processing a lump sum payment along with regular income if needed.

 

For more information, see Ill Health Retirement.

Early Retirement From 50

Clip Board with a piece of paper with the words early retirement printed in block capitals.

For those fortunate enough to consider early retirement from age 50, it is possible to access your pension early in some cases.

 

Withdrawing your pension early provides you with a regular income during your retirement.

 

However, not everyone is eligible for early retirement from 50.

 

Those with employer pensions can access their retirement benefits early at 50 under early retirement rules.

 

Accessing a private pension from age 50 is more complex. There must be at least one contribution made directly by an employer or by a limited company.

 

For more information on accessing a private pension early, see “At What Age Can You Cash In Your Private Pension.”

 

If you are interested in early retirement at 50, it is important to speak to a financial advisor.

 

Your advisor will forecast future investment growth and provide projections on how long your funds will last into retirement.

 

This makes the decision on whether early retirement is suitable for you much easier.

 

If there is a gap in funding and early retirement is not possible right now, your advisor will suggest ways to bridge the gap as soon as possible, enabling you to retire early.

 

See Early Retirement for more detailed information. 

Is it Possible to Withdraw Pension Early & Continue to Work

Image shows a blue sticky note with the words "Early Withdrawal" written in black pen.

Accessing some or all of your pension from age 50 while continuing to work is an option available to many people.

 

To cash in some or all of your pension early, you will need to meet certain requirements. These requirements vary depending on the type of pension fund you hold.

 

If eligible, you will have the option to take a tax-free lump sum.

 

You can then decide to take an additional taxable lump sum from your pension or reinvest the remaining funds to withdraw at a later date, such as at retirement.

 

For more information on withdrawing your pension early while continuing to work, see Pension Lump Sum at 50.