A Personal Retirement Bond (PRB), also known as a Buy-Out Bond, is a pension product used in Ireland to manage retirement benefits from previous employment. It allows individuals to transfer their pension entitlements from an occupational pension scheme into a personal policy. PRBs are often chosen by people leaving employment or when a pension scheme is winding up.
The benefits of a PRB include the ability to control how the pension fund is invested and the flexibility to choose from a wide range of investment options such as equities, bonds, and property. PRBs can be a suitable option for those who want more control over their pension funds compared to leaving them in a former employer’s pension scheme. Upon reaching retirement age, the funds in the PRB can be used to purchase an annuity, transferred to an Approved Retirement Fund (ARF), or taken as a lump sum, subject to tax regulations.
PRBs provide a transparent and flexible way for individuals to manage their pension funds and tailor their retirement strategy according to their financial goals and risk tolerance