Blog – Galway Talks 21st February 2013

Question:  I have been in the same job for the last 15 years and have now been told that I am being made redundant.  I have built up monies in the company pension plan and I am wondering what should I do?

Answer:   I am making an assumption that you are in a defined contribution scheme with your employer, which is the most common structure in the private sector.  Assuming that this is the case then your best option is to move the monies from the current scheme into a retirement bond.  The same revenue rules on retirement will apply, however this change will eliminate any contact with your old scheme and give you control over the investment policy for these monies as the years progress.

Alternatively if you are in a defined benefit scheme then you should remain as you are for the moment, as there are certain guarantees built into the plan that you hold.

Question:  I have received a letter from Bank of Ireland offering me an opportunity to give up my Tracker mortgage.  Have you any advice on this?

Answer:  As they always say “Beware of Greeks bearing gifts”.  This is certainly true when you get an offer from the bank that would appear to be to your advantage.  Always make the assumption, that they are only writing to you because there is a clear benefit to them by getting you to change your current mortgage structure.

I have not seen the detail of the correspondence you have received and in order to provide you with an accurate response I should be obliged if you would contact me and I can review the matter with you.

Question:  I have a mortgage with a UK lender that operates in Ireland.  I am in a position to make a substantial payment to clear the loan and I am wondering will they offer me any sort of a deal to do this?

Answer:  I am making an assumption that this is possibly Bank of Scotland that you are dealing with, who are certainly the most active lender in agreeing settlements.  If you are up to date and have met all your payments it is very unlikely that the bank will agree any settlement with you, despite the rumors to the contrary that continue to circulate.  This bank is only agreeing to settlements where they foresee little or no possibility of getting the entire loan amount cleared at any stage in the future.