This ultimate PRB guide is designed to help you understand all aspects of Personal Retirement Bonds, from charges and investment options to the application process and access come retirement.
A Personal Retirement Bond (also known as a Buy Out Bond) or as a PRB or BOB, is an individual pension bond established in your name. It is designed to allow you to transfer your Company Pension Scheme benefits into the bond, if you are leaving or have left employment, which has also resulted in your exit from their company pension scheme, or if your company pension scheme is shut down.
A PRB transfer may also be accepted from a PRSA, or a Personal Pension Plan, as a result of a Pension Adjustment Order (PAO), or you may choose to replace one PRB with another, to benefit from a broader investment fund choice and or lower charges.
Compared to leaving your Company Pension Scheme benefits behind, a PRB allows you complete control over the funds you invest in, as well as grants earlier access to them if required, but another crucial point to be aware of, is that PRBs typically carry lower charges than the other transfer alternative, which is a PRSA.
PRB Guide – Charges
Once you decide to take control of your pension pot and choose a Personal Retirement Bond, you will need to find a Financial Broker that offers a sufficient range of asset managers and funds, to create the best investment strategy for your PRB, with a competitive fully transparent single charge.
Financial Brokers can negotiate lower provider charges the larger your fund transfer, but they will also add their support charge. This combined charge is then levied against your PRB fund value and is expressed as an annual management charge or AMC.
PRB Guide – Investment Strategies
Once you’ve discussed and are satisfied with the annual management charge, then it’s time to assess your risk and reward tolerance level. This simply means completing a risk assessment which also includes an optional ESG questionnaire, so that your fund recommendations are best suited to you.
PRB Guide – Application Process
It is important to realize that if transferring your pension benefits to a PRB on exiting your previous employer’s occupational pension scheme, then the Trustees of that scheme must sign off on it. This means that as well as completing a PRB Application form, you will also need to complete a benefit transfer form, which will require the scheme trustees to sign. A good broker will assist you to make this process as seamless as possible.
If instead, you are transferring from one PRB to another to lower charges and improve service, then as the existing PRB is already personally owned, only the new PRB application is required.
PRB – Frequently Asked Questionsimprove
What are the key features of a PRB?
The policy is issued in your name. There is flexibility regarding the investment of assets. Your Financial Broker can help you access the full range of funds of a particular investment manager. A PRB aims to provide a fund you can use to withdraw pension benefits on retirement.
Who can set up a PRB?
- Anyone leaving or already left an employment with a pension fund relating to that employment.
- Anyone leaving their occupational pension scheme.
- Anyone whose company pension scheme is being wound up
When can I set up a PRB?
You can set up a PRB anytime, albeit at the time of exiting a Pension Scheme or later down the road.
What are the key advantages of a PRB?
- Gives you more control of your pension assets,
- Removes any future connection with your old employer,
- and allows you to invest your pension fund in line with your circumstances and financial objectives.
When can I access my PRB money?
A PRB is a pension plan in your name, available to access at any time from age 50.
Can I top-up my PRB?
No, a PRB is a single premium bond, that can only accept transfers from an individual employer pension.
What charges should I expect on my PRB?
- The first thing is to insist on a nil contribution charge or in other words 100% investment allocation.
- Then an AMC of between 0.65% and 1.00% dependent on the size of your transfer.
Why Choose One Quote as your PRB Provider?
- We provide highly competitive and transparent charging structures.
- We will recommend an investment portfolio designed around your needs and long-term objectives.
- We will give you a clear picture of the expected retirement income from your pension.
Here at One Quote Financial Brokers, we have access to the world’s leading fund managers, offer the most competitive charges, and lead the way in the provision of premier-level service not only at set-up but up to retirement age and beyond.
To arrange your free no no-obligation consultation by phone, video conference, or in person contact us today. Contact: Ken O’Gorman – Director – QFA, CB, SIA – Investment Specialist – One Quote Financial Brokers on: 01 845 0049 or email: ken@onequote.ie
Or enquire online and give us a quick outline of how we can help.
