Transfer Old Company Pension Ireland – A Quick Guide

If you’ve changed jobs and left a pension behind, you’re not alone — thousands of people each year consider whether to transfer an old company pension in Ireland. But what’s the best move? Leave it where it is, move it into your new job’s scheme, or transfer it into a Buy Out Bond?

This guide walks you through all three options so you can decide what’s best for your future.

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The Three Pillars of Pension Choice

When you leave a job in Ireland, you generally have three options

1. Leave the pension where it is.
2. Transfer it into a new employer’s pension scheme.
3. Transfer the old company pension in Ireland into a Buy Out Bond (also called a Personal Retirement Bond).

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Option 1: Leave It in Situ

Good only if:

• Annual charges are low, and
• You’re okay with limited fund options—company plans often restrict your choices to a few

Otherwise, your money could grow slowly in a stagnant, poorly-managed scheme.

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Option 2: Transfer to a New Employer Scheme

Pros:

• Maintains “two-year rule” continuity if it is coming from an occupational scheme.
• Prevents your new employer from reclaiming contributions if you leave within two years

Cons:

• You may lose early-access options (e.g., accessing funds at age 50) as you take on the new scheme rules.
• Often still limited to scheme-only investment choices.

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Option 3: Transferring an Old Company Pension into a Buy Out Bond in Ireland

A Buy Out Bond (Personal Retirement Bond) is often the most flexible and popular choice in Ireland when people transfer an old company pension.

• Broader fund access – gives you more control and potentially better returns
• Early access benefits – you can access from age 50
• Preserve DB pension options – if moving a defined benefit pension, you may gain Approved Retirement Fund (ARF) with the ability to take a 25% tax‑free lump sum or you can choose the traditional benefit option which gives your lump sum based on years of service and final salary calculations.

Transfer into a PRSA

This option can be useful if your goal is for pension consolidation. With a PRSA you can consolidate multiple pension schemes into the one pension.

Can be useful if have several small pensions under €10,000. Above €10,000 a certificate of benefit of comparison(COBC) may be required if the scheme has not been wound up and these can be costly. If your old pension was a PRSA then a COBC is not required no matter the size of the fund.

Real-Life Case: Why Jane Transferred Her Old Company Pension in Ireland

The following is a real life case study with one of our clients. Meet Jane, 35 –. When we met Jane she had an old pension with a previous employer that was worth €62,368.00. It had been invested in cash and she was actually unaware of this. She had never had a pension review in her previous job so the pension had simply remained invested in cash. That was 2018. Jane decided to transfer her old workplace pension into a Buy Out Bond. As of June 25 the pension is now worth over €127,000. We were able to achieve this with regular reviews and access to a much wider range of funds. Jane also has access to this pension from age 50.

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Risks & Things to Know

• Defined‑Benefit pensions may lose guarantees when transferred. You need to look at the transfer and work out if this is better in the long run than the yearly promise offered by the DB pension scheme. It is important to also note DB schemes are only as good as their funding.
• Make sure there are no transfer out charges (known as surrender penalties) and make sure you are not missing out on a bonus if you remained in the scheme.
• Check the charges on your existing scheme. Some schemes may have low charges and moving to a higher management charge could negatively effect the overall returns you hope to achieve.
• Scheme rules vary, especially around early access.

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8. How a Financial Advisor Can Help

A Certified Financial Planner:

• Clarify whether your scheme is DB or DC
• Compare charges and fund options
• Assess your retirement timeline
• Review your risk appetite
• Choose the optimal path—leave, transfer to your new workplace pension scheme, or move to a Buy Out Bond or PRSA

✅ Final Takeaway-Should You Transfer Your Old Company Pension in Ireland?

Option	Best When
Leave It	It’s low-cost and meets your needs
Move to New Employer Scheme	Charges might be low and your feel that your new job might be risky. If they contribute to your pension and you leave within two years you can potentially prevent them from taking company contributions back if your overall service between your new job and old job is greater than two years.
Transfer to Buy Out Bond	You want flexibility with a wider range of funds, control, and access at 50

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Curious if a transfer is right for you? We offer free pension reviews to see how we can help.
👉 [Book your free review here or by emailing me at sean@financiallife.ie or calling 015823524] and see if a move could boost your retirement security.