Q Ulster Bank actively encouraged customers to change to paperless account statements, accessing online through Internet banking. It gave a commitment that online statements would be available for seven years. When the bank closes will this facility still be available? If so, how will former customers access their records? Login facilities have been disabled on closure of all accounts.
There is a guide on its website outlining steps for customers to ensure a smooth closure process and they are encouraged to download any documents they would require, for example, statements or certificates of interest, before they close their account.
Ulster Bank said that after an account is frozen or closed, customers will not be able to access statements online, as they will no longer have access to Anytime Banking and the mobile app.
If a customer wishes to order a statement because the account is now frozen or closed and they no longer have access to Anytime Banking or the app, they can contact the telephony team on 0818 210 260 or visit their local branch. Branches will remain open until April 21.
Q I have been self-employed for a number of years. I am considering setting up a Personal Retirement Savings Account (PRSA) and I see there are two options, a standard PRSA or a non-standard PRSA. Which is the best option?
A This will largely come down to how much certainty or limits you want around charges, and how much flexibility you would like around investments, according to Glenn Gaughran, head of business development with Independent Trustee Company.
With a standard PRSA, there is a limit on the charges on your pension. You cannot be charged more than 5pc on the contributions paid into your PRSA, or more than 1pc of the value of your PRSA fund each year.
With a standard PRSA, you are only allowed to invest in pooled funds such as unit trusts and life company unit funds. This may suit if you don’t have that much investment expertise. Charges on non-standard PRSAs are not capped and will vary, depending on the PRSA product and PRSA provider, Mr Gaughran said.
With a standard PRSA, you are only allowed to invest in pooled funds
The charges you pay on non-standard PRSAs often come down to how your money is invested, and how much you invest. Charges on non-standard PRSAs can be higher than they are on standard PRSAs but not in all cases.
You should understand the charges on a non-standard PRSA before you sign up to one, he said. As non-standard PRSAs don’t restrict your investments to pooled funds, you have more flexibility around investments with non-standard PRSAs, and a larger selection of assets to invest in.
Q I recently retired from the public service and received a pension, comprising of a tax-free lump sum equal to one-and-a-half times my finishing salary and an annual pension of half my finishing salary. I also have a traditional with-profits personal private pension, which was accumulated before I started working in the public service. My pension provider has valued this at €70,505. What would be the most tax efficient way of drawing down the benefits of this pension? Is it possible to take a portion of the private pension fund as a tax-free lump sum considering that I have already received a lump sum from my public service pension?
A Pension savers have a lifetime tax-free lump sum limit of €200,000 across all pension benefits, according to Mark Ruddy, head of client management at benefits specialists Lockton.
Provided that the previous lump sum paid was less than €182,374, you will now also be able to take €17,626 as a tax-free lump sum based on the value quoted, he said.
Personal pension savers are allowed to take up to 25pc of the value of their fund as a lump sum at retirement
Personal pension savers are allowed to take up to 25pc of the value of their fund as a lump sum at retirement. With the balance of the fund (75pc), you will be able to purchase an annuity, invest in an Approved Retirement Fund (ARF), or take a once-off taxable payment.
Mr Ruddy recommends that you speak with an independent financial adviser to ensure you are not missing out on any bonuses associated with the with-profit fund and to discuss the most suitable manner to draw the remainder of your benefits.