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Christie63
Albania
7 Posts |
 Posted - Dec 07 2022 : 09:13:40
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When you cash in your pension, you can receive a Tax free lumpsum at 50 https://nationalpensionhelpline.ie/pension-advice/can-i-cash-in-my-pension-early/. The lump sum payment will usually be larger than the regular income, but both payments will be taxable according to your individual tax bracket.
The main advantage of cashing in your pension is that you will receive a large sum of money quickly. Depending on the size of your pension and how long you have been contributions for, cashing out could result in a substantial savings (up to 50% on average).
The main disadvantage of cashing out is that this money will come from your retirement savings and may reduce the amount available for other purposes such as buying an home or starting a family later on in life. Furthermore, any taxes that are payable on this money must be paid immediately—even if you don’t have to pay them until after filing your annual tax return. |
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The benefits of cashing in your pension
