Irish Pension Information


Once you have taken your tax free lump sum from your pension you will then need to turn you attention to the remaining amount and decide what you wish to do with it.


Once you have taken your tax free lump sum you can decide to invest the remaining funds in your pension. If your fund was performing poorly or subject to high charges you may be able to grow your pension back to the level it was at before you made the withdrawal.

Speaking with a Financial Advisor who can compare the options on the market for you will help. If you have other pensions these will need to be taken into consideration too. This will give you an idea of the retirement income you can expect and allow you to adjust your plans accordingly.

As you will have taken control of your own pension when you invest you will be able to choose which fund is ideally suited to you. This is one of the main advantages of accessing your pension if it has been in an employers pension scheme. 

Taka a Taxable Lump Sum

Once you have taken your tax free lump sum you then have the option to take a further lump sum from your pension. Any further lump sum is taxable as if it were income. 

Taxable Lump Sum
I have €100,000 in my pension. I take 25% (€25,000) tax free. I take the remaining €75,000 as a lump sum but it is taxed as income.

If you are working when you access a taxable lump sum from your pension all of your income both from working and from your pension will be taxed.

If you are considering taking a taxable lump sum it is a good idea to speak to a tax consultant as they can advise the most tax efficient way for you to access a lump sum from your pension.

Speak to a Tax Consultant

Which option is best for me?

Whether or not you should invest the remainder of your funds or take them them as a taxable lump sum will completely depend on your individual financial situation. You may decide to split your fund and do both.

In instances where you have a second pension you may decide to access the full amount now. In other cases where the remaining balance left in the fund is quite small and would not provide you with any meaningful income in retirement you may decide it is more beneficial to access it straight away.

This is a decision which should be tailored to your specific financial needs and objectives. You should discuss this in detail with your financial advisor who will be able to highlight the pro’s and con’s for both options allowing you to make an informed decision on what is best for you.

Access Pension From 50 Assessment

More to Explore

Early Pension Access Calculator

Impact of Early Pension Access If you are considering accessing your pension early you are probably wondering what impact taking funds from

Cookie Policy

Cookie Policy Effective Date: 05-Jan-2023 Last Updated: 05-Jan-2023   What are cookies? This Cookie Policy explains what cookies are and how we

Privacy Policy

Here at Irish Pension Information we are all about putting the power into your hands. Your privacy is important to us, and