Everyone likes the idea of a tax-free lump sum - but taking it from your pension isn't always the smartest thing to do
Briefly

As Irish workers approach retirement, they face a critical choice between withdrawing a 25% tax-free lump sum from their pensions or leaving the substantial amount invested. This decision can heavily influence their financial security for life. Experts suggest that retirees, particularly those with sizeable pension pots who don't require immediate liquidity, may significantly improve their long-term wealth by choosing to leave their pensions invested instead of adhering strictly to traditional advice about taking the lump sum.
When considering retirement options, it's essential for individuals to evaluate their long-term financial health rather than following traditional advice blindly. A lump sum may not always be the best choice.
Our historical analysis shows that retirees with larger pension pots who don't need immediate cash may significantly benefit from leaving their investments intact instead of opting for a tax-free lump sum.
Read at Independent
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