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A Dublin-based financial firm is carving out a niche by giving people over the age of 50 the option to get access to 25pc of their pension tax free.

The scheme is likely to prove attractive for those who have been made redundant or people who want to retire early.

Custom House Capital is offering to carry out the transaction free of charge.

John Mulholland of the advisory firm explains that taking out a 25pc tax-free lump sum involves transferring an occupational pension fund into a PRSA (personal retirement savings account).

The option only applies to people who have been in an occupational defined contribution scheme for less than 15 years. Mr Mulholland says most members of defined contribution schemes have had them for less than 15 years.

His firm is the only non-life company in Ireland that has a licence to provide its own PRSA.

The Custom House Capital PRSA is a non-standard one -- there are no charges on contributions but the annual management charge is 1.5pc. Standard PRSAs have a 5pc charge on contributions and a 1pc annual management charge.

The law demands that an actuary completes a "certificate of benefit comparison" before you can transfer out of an occupational pension scheme. But Custom House Capital absorbs the charge for this