Possible Capped Maximum Tax Free Lump Sum from Pension

There has been speculation that the Government will make some changes in relation to the tax free lump sum that is available from pension plans at retirement. The Government signalled their intent to make some changes in relation to pension planning at the last budget.

Many commentators believe that the tax free lump sum available from pension plans in the future will be limited to a maximum amount. The figure of €100,000 has been suggested. It is for this reason that it may be a good idea for your clients who have significant pension funds and who are aged over 60 to review their retirement plans and perhaps take benefits before this cap may be introduced in December.

It may be possible for an individual over age 60, to take their retirement benefits and continue to work, and even contribute to a fresh pension.