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Benefits payable on retirement

Lump sums

Virtually all pension arrangements allow you to take a tax-free lump sum within certain limits at retirement. Most people avail of this option. You may also be able to take a higher lump sum which is taxable. Different rules apply to the amount of cash you can take out of a pension arrangement depending on the type of arrangement you have.


For personal pensions (RACs), PRSAs and people transferring to Approved Retirement Funds at retirement, the cash limit is 25% of the retirement fund.

The maximum amount of cash you can normally get from an occupational pension scheme at normal retirement age is broadly 1.5 times your Final Remuneration, if you have completed 20 years’ service.