The Pensions Authority would like to place cookies on your computer to help us make this website better. To find out more about the cookies, see our Cookie Policy.

I accept cookies from this site You must tick the 'I accept cookies from this site' box to accept.

In order to personalise your content you must select all three options


Tax

Tax on lump sums at retirement

The first €200,000 of pension lump sums payable is currently (2016) tax free. This is a total lifetime limit even if lump sums are taken at different times and from different pension arrangements. Lump sums between €200,001 and €500,000 are taxed at 20%, with any balance over this amount taxed at your marginal rate and subject to the Universal Social Charge.

The amount of cash you can take out of a pension arrangement is limited, with different rules applying depending on the type of arrangement you have.

For RACs, PRSAs and people transferring to AMRF/ARFs at retirement, the cash limit is 25% of the retirement fund.

The amount of cash you can 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 and have no benefits from a previous scheme.