I don’t need a pension, do I have to take it?

Q

In February, I will receive a generous retirement pension. I also have a large amount of cash in savings.

Because of this, I feel a bit guilty about taking the State old-age pension. Is there any way I could waive it?

- Mr MH, Dublin

A

With all the gloom around these days, it’s great to hear from someone who feels they have a surfeit of good fortune. Given the ongoing changes in pension legislation and tax relief coming through the system, you may be of the last generation to be able to afford a generous retirement pension.

There is no facility to waive your entitlement to a State pension (as they now call the old-age pension). However, the general practice is to apply in writing for the pension around three months before you are eligible. This is done by completing Social Welfare Services form SPC 1. If you don’t apply, it is possible that the Department of Social Protection will be unaware of your status and will simply not pay the pension to your account.

The form does warn that if you are more than 12 months late in applying you stand to lose some payment.

But that all seems a rather haphazard approach.

If you feel you are indeed comfortable enough financially not to require the State pension, why not simply pay the amount monthly into a charity of your choice. That way you have a better prospect of ensuring the money to which you are entitled after a lifetime of work and social insurance contributions goes to a cause where you feel it will do good.

The most cost-efficient way to transfer shares?

Q

Your correspondent last week raised the cost of transfer of Vodafone shares. I am in the process of being appointed administrator of my sister’s estate. She has some Vodafone shares.

Please advise the most cost- efficient way of transferring these to me and their subsequent sale.

- Mr BO’M, e-mail

A

The most cost-efficient way of transferring shares is through the use of a stock transfer form.

Until recently, this was a paper based transaction with the Revenue’s stamping office. Since July, however, all stamp duty matters have migrated online with people being asked to use the Revenue Online Service (ROS).

If you are a business customer or anyone else who already files electronically, this will be a fairly straightforward matter. However, in the case of people for whom this transaction might be a once-off interaction with Revenue, I am assured a “common sense” approach applies and a paper-based return is possible. You will need to contact the Revenue stamping division at Dublin Castle or at dublinstamp.ie.

Either way, the only cost involved in transferring the stock is the stamp duty involved, which is levied at 1 per cent of the value of the shares.

In terms of selling the shares, you will need to go through a broker but this can be done on an execution only basis. Ring around the brokers to find the most competitive price for this part of the transaction.

This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into.

Please send your queries to Dominic Coyle, QA, The Irish Times, 24-28 Tara Street, Dublin 2. E-mail: dcoyle@irishtimes.com