When you change jobs in Ireland, your pension does not disappear. You typically have three main options: leave your pension in your old employer’s scheme, transfer your pension to your new employer, or move it into a Personal Retirement Bond (PRB) or PRSA.
Introduction
Changing jobs is an exciting step in your career, but many people overlook one critical question: what happens to your pension when you change jobs?
Your pension savings are one of your most valuable financial assets. Making the right decision when leaving employment can significantly impact your long-term financial situation and retirement outcomes.
In this guide, we explain your leaving service options, how different pension schemes work, and what you should consider before making a decision.
What Happens to Your Pension When You Change Jobs?
When you leave an employer, your occupational pension scheme stops receiving contributions. However, your existing pension savings remain invested and belong to you.
You will usually receive a Leaving Service Options Statement, outlining your available choices. These typically include:
- Leaving your pension where it is
- Transferring your pension to your new employer’s scheme
- Moving your pension into a Personal Retirement Bond (PRB)
- Transferring into a Retirement Savings Account (PRSA)
Each option has advantages depending on your personal circumstances.
Option 1: Leaving Your Pension with Your Old Employer
This is the default option if you take no action.
Pros:
- No immediate action required
- Your pension remains invested
- You can still access benefits at retirement (including tax free lump sum)
Cons:
- Limited control over investments
- No further pension contributions allowed
- Risk of losing track of your pension over time
Leaving your pension may be simple, but it is not always the most efficient choice for long-term retirement savings.
Option 2: Transfer Your Pension to Your New Employer
You may be able to transfer your pension to your new employer’s scheme, depending on the rules.
Pros:
- Consolidates your pensions into one plan
- Easier to manage
- Continued contributions from your new employer
Cons:
- Limited flexibility
- Bound by your new employer’s scheme rules
- Potential loss of certain benefits
While convenient, this option should be reviewed carefully with a financial advisor.
🏦 Option 3: Move to a Personal Retirement Bond (PRB)
A Personal Retirement Bond (PRB), also known as a Buy-Out Bond, allows you to transfer your pension into your own name.
Benefits:
- Full control over your pension plan
- Independent of any employer’s scheme
- Flexible investment options
- Access from age 50 (depending on rules)
Things to Consider:
- Charges may vary
- Cannot add further contributions
This option is often preferred by individuals who want more control over their financial future.
Option 4: Transfer to a PRSA (Personal Retirement Savings Account)
A Personal Retirement Savings Account (PRSA) is a flexible pension option.
Benefits:
- Portable across jobs
- Allows ongoing contributions
- Ideal for changing careers or self-employment
PRSAs are particularly useful if you expect to move jobs frequently or want a flexible long-term pension plan.
What About Your Tax-Free Lump Sum? (Snippet Answer)
In Ireland, you can typically take up to 25% of your pension as a tax free lump sum at retirement, subject to Revenue limits. This applies regardless of whether you stayed with one employer or changed jobs.
Key Factors to Consider Before Deciding
When deciding what to do with your pension, consider:
- Your overall financial situation
- Investment performance and charges
- Flexibility and control
- Future job changes
- Long-term retirement goals
Every decision should align with your broader financial advice and retirement strategy.
Step-by-Step: What You Should Do When Changing Jobs
- Request your Leaving Service Options Statement
- Review your current pension value and benefits
- Compare options (PRB, PRSA, transfer, or leave)
- Speak with a qualified financial advisor
- Make a decision aligned with your long-term goals
Why Speak to a Financial Advisor?
Every pension decision affects your long-term financial security. A professional advisor helps you:
- Understand complex pension schemes
- Compare all available options
- Optimise tax efficiency
- Build a clear retirement strategy
At Fortis Financial, we provide expert financial advice in Cork and across Ireland, helping you make informed decisions when changing jobs.
Take Control of Your Pension
So, what happens to your pension when you change jobs?
The answer depends on your choices — and those choices matter. Whether you decide to leave your pension, transfer it, or move it into a PRB or PRSA, the key is to stay in control.
Your pension is not just a savings plan — it is your future income.
Book a consultation with Fortis Financial today and get expert guidance on managing your pension when changing jobs.
