What is a PRB?

A Personal Retirement Bond (PRB), also known as a Buy Out Bond, is a way to retain ownership of your pension fund when you leave a job.

When you’re part of a company pension scheme, your employer and the scheme’s trustees (people responsible for managing the pension) look after your pension for you. But if you leave that job, a PRB lets you move the value of your pension fund out of the company scheme and into a personal policy that’s just for you.

 

Why Consider a PRB?

If you’ve left a job, or are planning to, a PRB can give you more control over your pension.

Instead of your old employer or their pension scheme looking after it, you get to decide:

• How your pension money is invested
• Who manages it
• What level of risk you’re comfortable with
• When you can drawdown retirement benefits

It’s your retirement fund, so it makes sense to have a say in how it’s handled, rather than leaving it to the discretion of your previous employer.

 

What Happens When You Transfer?

How the transfer works depends on the type of pension you had with your employer:

• Defined Contribution (DC) Pension:
  This is like a savings pot with a clear value, for example, €100,000. You can usually move this full amount straight into your PRB, at no cost. You just need a financial advisor :).
• Defined Benefit (DB) Pension:
  This type of pension promises to pay you a set amount in retirement, based on your salary and years of service. Before it can be moved into a PRB, an expert will calculate how much it’s worth as a lump sum (called a transfer value). Careful consideration of all benefits and all options is required. Once again, consult a trustworthy financial advisor.

 

In Simple Terms

A PRB is a way to keep your pension safe and growing after you leave a job. It puts you in charge, gives you more flexibility, and helps keep your retirement planning on track.

To speak to a Certified Financial Planner on this topic, please do Get In touch