Yes, you can take your pension at 55 and still work. In Ireland, you can actually take your pension early from age 50. There is a common misconception that you need to leave work to access your pension early but most of the time this is not the case. Can I Take My Pension At 55 And Still Work?
For the purposes of early pension access in Ireland there are three main pension types.
These are
- Employer Pensions
- Personal Retirement Savings Accounts or PRSA’s
- and PRSA’s with Employer Contributions
Let’s take a look at the rules which apply to each pension type in relation to working.
Employer Pension
You can access an old employer’s pension from 50. In order to do this, you must no longer work for the same employer you grew your pension with. You can however work with another employer or for yourself.
So, if you have an old employer’s pension and want to access it early you simple have to no longer work with the employer you grew the pension with to be eligible.
Personal Retirement Savings Accounts
If you want to access a PRSA early also known as a private pension you must be age 60 or over. You must no longer be paying into the pension fund you want to access.
You can continue to work without restriction while withdrawing your fund.
These rules apply to those with a PRSA with personal contributions only. This means that only you paid into your PRSA. If you have at least one employer contribution to your PRSA please take a look at the next section.
Personal Retirement Savings Account with Employer Contribution
If an old employer made at least one contribution to your PRSA then you may be able to access it early from 50. In order to access your pension early in this instance you must be out of work. If you are working when you try to access this pension you will be denied access.
You can return to work immediately after you access your fund with no restriction.
In summary you can access an employer pension once you no longer work for the same employer and are 50 or over. You can drawdown this pension and work with another employer with no restriction.
You can access a PRSA with personal contributions only once you reach age 60. There are no restrictions on your working status. Please note however, you cannot access a pension you are currently paying into to.
Finally in order to access a PRSA with employer contributions between the ages of 50 or 60, you must be out of work while withdrawing the pension. You can then return to work without restriction once you have accessed your fund.
If you would like to find out more see Can I Take My Pension At 55 And Still Work?