Personal Retirement Bonds

A personal retirement bond (PRB), also known as a buy out bond, is used by the trustees of a pension scheme to purchase retirement benefits for deferred members of the scheme. A PRB is a personal policy that the individual deferred member will receive. The value of the deferred members retained benefits in the purchasing scheme are transferred to the retirement bond.

PRB's are used when members leave employment, leave the pension scheme or where there is a complete wind down of the pension scheme.

The main advantage of PRB's is that they allow the deferred member to make a complete break from their ex employers scheme. Also the PRB will usually provide for a wider investment choice than a typical employer pension scheme.

Under revenue rules, you can retire early from a personal retirement bond from age 50.