What types of Pension can purchase Property?
You will need a Self-Administered or Self-Directed Pension so instead of an Insurance Company / Bank you will instead use a Pensioneer Trustee. These are Specialist Pension Firms approved by Revenue to administer Pension Schemes and to ensure that they are Revenue compliant. The traditional Pension Providers want you to stick to the Funds which they offer as it is more profitable for them and easier to administer, and they discourage / prohibit you from going 'off-piste'. This is where the Self-Administered / Self-Directed Pensions fit in - they specialise in dealing with Individuals and while they must ensure everything you do is Revenue Compliant they are happy to allow you to do your own thing within these rules.
As you probably know, there are a number of different pension types:
Personal Pensions - Cannot acquire property directly but can be transferred to a Non-Standard PRSA with a Pensioneer Trustee Firm to facilitate same. Rules in relation to retirement age, tax free lump sum (25%) at retirement etc are the same, it's just that non-standard PRSA's have a wider investment mandate.
Company Pensions - transfer to Small Self-Administered Pension Scheme (single member) to facilitate property acquisition.
Approved Retirement Fund (ARF / AMRF) - transfer to Self-Directed ARF / AMRF with a Pensioneer Trustee to facilitate property acquisition.
Personal Retirement Savings Account (PRSA / PRSA AVC ) - transfer to Self-Directed PRSA / PRSA AVC with a Pensioneer Trustee to facilitate property acquisition.
Retirement Bond - transfer to Self-Directed Retirement Bond with a Pensioneer Trustee to facilitate property acquisition.
Pension transfers is a complicated area and one which requires specialist advice as you need to be mindful of future tax free entitlements and timings. Very often people naively tidy up a number of pensions into one without realising that by doing so they have greatly reduced their future entitlements and flexibility.
If you would like further information or to discuss your situation further, don't hesitate to contact Joe O'Regan on (01) 293 7200 or bu using the form below.