Hi, I’m looking for some advice on purchasing notional service and in relation to AVCs.
Age: 53
Pre 95 Civil Servant
Service: will have 32.5 years service at age of 60.
Member of spouses and children’s scheme.
Current salary: €63K - at top of salary scale
Plan to work full time from now until I’m 60 but will review after that. Can work up to 65 / preference would be 62/63.
50/50 Possibility of promotion before age of 60.
As I am short years, I am thinking of buying one years service. Initially
I was planning on paying fortnightly on basis of retirement age of 60. Now thinking of paying 2 lump sums - 6 months this year and further 6 months next year. Total lump sum cost for one year is €21k (33.3% of gross Salary) so I think 6 months should be half that. I would hope to get 40% tax back. Rate for periodic contributions up to age of 60 is 4.74%. Given the cost, is it a good idea for me to buy notional service? Is it better to pay periodically or in lump sums (I have savings to cover cost of lump sum ). I also plan to take out AVC at later date probably next year. Would I be better off starting one now and not bothering with the notional service. I find it all very confusing so would be very grateful for any comments.
Age: 53
Pre 95 Civil Servant
Service: will have 32.5 years service at age of 60.
Member of spouses and children’s scheme.
Current salary: €63K - at top of salary scale
Plan to work full time from now until I’m 60 but will review after that. Can work up to 65 / preference would be 62/63.
50/50 Possibility of promotion before age of 60.
As I am short years, I am thinking of buying one years service. Initially
I was planning on paying fortnightly on basis of retirement age of 60. Now thinking of paying 2 lump sums - 6 months this year and further 6 months next year. Total lump sum cost for one year is €21k (33.3% of gross Salary) so I think 6 months should be half that. I would hope to get 40% tax back. Rate for periodic contributions up to age of 60 is 4.74%. Given the cost, is it a good idea for me to buy notional service? Is it better to pay periodically or in lump sums (I have savings to cover cost of lump sum ). I also plan to take out AVC at later date probably next year. Would I be better off starting one now and not bothering with the notional service. I find it all very confusing so would be very grateful for any comments.