The Personal Retirement Bond

The Personal Retirement Bond

What is the Personal Retirement Bond?

A Personal Retirement Bond (PRB) is a single premium pension contract set up by a former member of an employer-sponsored occupational pension scheme for their benefit on leaving the scheme. The value of their fund on leaving the company pension scheme is invested in the PRB in their own name. It is then an individual / personal contract between the holder and the pension provider. On retirement, the holder of the bond can use the proceeds of the PRB to provide their retirement benefits.

You should consult with a Qualified Financial Advisor before considering transferring your former employer’s pension benefits to a PRB. In some instances, you may be better off leaving your benefits as part of your former employer’s pension scheme. If you were a former member of a defined benefit(DB) pension it may be in your interests to leave your benefits in the former pension scheme. It is very important to get independent advice when you leave employment and the options available for your pension benefits.

How Does a Self-invested PRB Work?

As one of only a small number of self-invested Personal Retirement Bond providers in the Irish market, the distinct advantage of our PRB contract is the flexibility of investment options. The holder of an NRFM Self-Invested PRB is not tied to an age/risk-related ‘lifestyle’ investment strategy or a strategy defined by trustees and previous employers. The PRB holder makes his or her own investment decisions and retains control of their retirement fund.

The Newcourt Retirement Fund Managers Limited (NRFM) Self Invested Personal Retirement Bond (PRB) is a contract designed to accept a transfer payment from an Occupational Pension Scheme, including a transfer from a Small Self Administered Pension Scheme (SSAPS).

The NRFM Self Invested PRB is effected in your own name and has the same tax-exempt status as an approved Occupational Pension Scheme. The PRB belongs to you and your previous employer/pension trustees have no further involvement in your pension investment.

Who Can Invest in a PRB?

The Personal Retirement Bond is a great investment in the future. This can be availed by people who fall under the following categories:

  • Clients who have left service with their former employers and who wish to transfer their pension benefits under their occupational pension scheme to this new product
  • Clients looking for the opportunity to manage their own pension funds, without the involvement of an insurance company and also without the involvement of their former employers
  • Clients who already hold an external PRB contract
  • Clients who wish to save for retirement
  • Client who wants to avail of retirement tax wrapper benefits

The Personal Retirement Bond is suitable for clients who are prepared to invest for the long term. If you are one  of those people who can invest in a Personal Retirement Bond, it is an investment that you will make use of effectively in the future.

What are the Advantages of PRB?

  1. You personally own the contract.

Once you have left employment you can transfer your former pension to a PRB in your personal name.  Your former employer is no longer connected to your pension. 

     2. You have early access.

On retirement, the bondholder is entitled to the same options with their fund as they had under their previous employer’s pension scheme. It is usually permissible to retire from a PRB at the age of 50 years and onwards subject to revenue rules

     3. You have a greater investment choice.

As you now personally own the personal retirement bond you can decide where to invest. The personal retirement bond offers a variety of investment options, so you can find an investment that meets your needs. You can choose to invest in stocks, bonds, mutual funds, and more.

     .4. Death Benefit

In the event of your premature death, the full value of your fund is paid tax-free to your spouse or your estate. 

There is a limit (Standard Fund Threshold)  on the maximum fund that can be built upon retirement. This is currently €2,000,000. This figure includes all of your pension funds, including the capital value of any retirement benefits drawn down since 7 December 2005. Where the relevant limit is exceeded, the excess of your pension fund at retirement will be liable to a once-off Income Tax charge at a higher rate of tax.

Why Choose an NRFM Self-Invested Personal Retirement Bond?

There are many reasons to choose the Newcourt Pensioneer Trustees Limited (NRFM) Self-Invested Personal Retirement Bond as your retirement savings plan.

  • The NRFM Self-Invested PRB offers you the opportunity to manage your funds without the involvement of an insurance company.
  • Your funds can be spread across a wide range of allowable investments including:
    1. Deposit Accounts
    2. Direct Property investment (residential or commercial)
    3. Choice of International Investment Managers
    4. Stockbroking firms
    5. Our clients use multiple platforms
    6. Full suite of Insurers investments funds
    7. Private equity
  • The NRFM Self-Invested PRB is designated in your name and provides you with greater flexibility and control in managing your retirement fund.
  • Individual Bank Accounts and Individual Investments Accounts are all set up with Dual Signatories. The Dual Signatories will be the PRB holder and one signature from NRFM.
  • You can transfer assets from an SSAPS in specie to an NRFM Self-Invested PRB.
  • As investment returns are free of both capital gains tax and income tax within certain tax jurisdictions, these investments are extremely tax efficient.
  • You can transfer to another occupational pension scheme later if required.

If you are interested to start with your Personal Retirement Bond (PRB), you need to choose the best PRB provider. NRFM is one of the best PRB providers in the market today. 

NRFM is among the only a handful of providers which offer a complete selection of self-invested pension options. NRFM makes sure that its clients are current with the most current pension laws and provides clients with a broad range of investment options.

Newcourt Retirement Fund Managers Limited (NRFM), with its associated business Newcourt Pensioneer Trustees Limited, specializes in providing self-invested pensions.

Our products offer flexibility and options when it comes to your pension investments. Our dedicated team of administrators makes sure that you’re kept up to date and informed about your retirement funds, and they are always on hand to answer your queries.

When deciding which pension plan is right for you, it is important to seek professional financial advice from a Qualified Financial Advisor to ensure that you are making the best decision for your individual needs