It can be. €190k would be tax deductible, so will cost much less in fact. Then it is simply a matter of living long enough to get the benefit. Alternatively, you could open a PRSA instead. Mrs Slim is facing similar dilemma and has opened PRSA.Is it ever worth buying back notional service? 18 years at e190k.
Hi! Slim, thanks for your comment. I was going to pay lump sump, but didn't know you could get tax relief on it. The bank has advised me to open a PRSA but am a little wary as a teacher friend of mine who is 60 said hers is worth much less now. Not keen on AVCs. Don't have great health so living long enough to reap the benefits might be an issue. What happens if I pay all this money and I get sick in service. Does this mean that I get a full pension if I have to retire on ill-health grounds if I have pay the 190k in a lump sum? Will kids get a full 'orphan's pension' if I pay this lump sum? Would really appreciate any advice.
There is a bit more than that to it. You also have to consider the risk of whether the Government will default between now and your retirement age. I think Greece just had a 15% cut in public service pensions across the board. Or indeed, a future Government cut just decide to cut pensions unilaterally.Then it is simply a matter of living long enough to get the benefit.
Would you like to explain the basis for your view that it is terribly expensive, and your source for the statement that it is 'rarely bought'?Notional service is terribly espensive, very rarely bought.