Secondary Teacher Superannuation (former private sector employee & other Q's)

S

sidzer

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I am a 38 yr old secondary school teacher who has 7.5 yrs service as a tempory whole time teacher in a number of different schools. My teaching income this year was €47,000. I've previously worked with a private company and have 6.5 yrs pensionable service which is currently worth @ €2,4000 p/a.

My wife is 36 and works in a state job and earns @ €80,000 p/a with overtime and has @ 10 yrs pensionable service.

We own three houses mortage free which under current values are worth @ €280,000 / €300,000 / €380,000. We let out 2 and get €2,200 per calendar month. There are of course costs that have to be taken from this rent including tax. We have one child and hope to add to our family and I think that the two properties will be passed on when needed by family in the years ahead so I don't think that the houses wil be part of our long-term pension future!

Our combined saving in our accounts are @ €60,000

I had wished to retire at 55 and hoped that I could buy back years. I met with a Cornmarket rep who told me that my pension would be significantly reduced and that buying back years was a foolish option if I was not going to stay until I am 60. He directed me to consider PRSA! On reflection I am not too impressed with this proposition as the older I live the poorer I will become as the fund runs dry. I have since been thinking about pushing myself to 60 and opting to be back years to up my pension.

Although we are married we still have separate bank accounts and I am sort of thinking about pensions from my own perspective.

I don't really have questions as I probably not so sure what questions I should be asking! However, does anyone have any light to shine on this matter.............

Anything would be greatly welcome..

Sidzer
 
Re: Any advice please...

If you want flexibility in relation to retirement and access to your money do a prsa avc just dont do it with cornmarket as their charges are huge

If you want a Gurannteed pension with a known fixed payment then look at purchasing notional service option either way do something as your missing out on all that lovely tax+prsi relief and tax free growth
 
Re: Any advice please...

sidzer said:
I had wished to retire at 55 and hoped that I could buy back years. I met with a Cornmarket rep who told me that my pension would be significantly reduced and that buying back years was a foolish option if I was not going to stay until I am 60. He directed me to consider PRSA!
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Don't expect unbiased advise from a sales person who earns commission from a PRSA and nothing when you buy back years.
 
Re: Any advice please...

Thanks rainy day and mula...

Does anyone know a good independent financial advisor in the north east area????
 
Re: Any advice please...

sidzer said:
Does anyone know a good independent financial advisor in the north east area????
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I cant help with the NE but would add to the advice above with the following (my italics):

I suggest you source a good independent professional financial advisor who understands and has experience on how Secondary Teacher's Superannuation works.

Ive changed the title of your question somewhat to more fully reflect the question, let me know if this is ok.
 
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Did you join the public sector pre or post April 1995? i.e. did you pay class A or D PRSI?

You can only buy years if you would be actually missing them at age 60 or 65. You can't buy them to retire early.

Example: a person will have 40 years paid at 65, but wants to leave at 55 with 30 years actually paid. You can't buyback the 10 years.

In your case, at age 38, with 7.5 years paid superann, I'll assume you started paying at age 30. So at 60 you will have 10 missing years.

However, you can only retire at 55 if you have 35 years service (some training years count for this). It seems you may not have 35 years service by age 55?

You should be able to retire at 60, and it seems you can buy back missing years.

See www.into.ie www.tui.ie or www.asti.ie
 
Thanks Protocol. Ye my buble has been burst - I'd hoped to go at 55 but it seems like I'll have to wait until 60 if I want to get a cosy state pension without being penalised for early exit.

For me there seems to be a very significant difference between 55 and 60 - and despite the holidays teaching is a very demanding environment and very few seem to manage to wave farewell at the gate with a fresh relaxed smile! I had planned to use those 5 years to travel and maybe study and do something different without the worry of money etc...

Will have to go back to the drawing board to consider my strategies or maybe I need to take up Yoga and be happy being a state employee in these turbulent times.

S
 
sidzer said:
Thanks Protocol. Ye my buble has been burst - I'd hoped to go at 55 but it seems like I'll have to wait until 60 if I want to get a cosy state pension without being penalised for early exit.

For me there seems to be a very significant difference between 55 and 60 - and despite the holidays teaching is a very demanding environment and very few seem to manage to wave farewell at the gate with a fresh relaxed smile! I had planned to use those 5 years to travel and maybe study and do something different without the worry of money etc...

Will have to go back to the drawing board to consider my strategies or maybe I need to take up Yoga and be happy being a state employee in these turbulent times.

S
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looking at your situation unless you have a gambling habit or something like that i dont see why you counldnt be gone at 55.
 
Anyone know the difference between pre and post 1995 Public Service Pensions?

I know that the prsi rate is higher for post 95 and that post 95 pensions are part made up of old age pension. Does that mean that a post 95 pension cannot be fully drawn down until the person is 65?

Thanks

S
 
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Pre April 1995 = pay 6.5% superannuation, pay low rate of PRSI, so get no PRSI pension.

Post April 1995 = integrated pension, pay full-rate PRSI, receive PRSI pension at 65 (or 66?).

Yes, you have a point.

You may receive the public service pension possibly at 60 (e.g. in teaching), and the PRSI pension at 65/66.

There is such a thing as a supplemental pension payable from 60-65 from public service while you wait for the PRSI pension.

It is paid if you would have got more under the pre-95 regime. Complex.
 
sidzer said:
Anyone know the difference between pre and post 1995 Public Service Pensions?

I know that the prsi rate is higher for post 95 and that post 95 pensions are part made up of old age pension. Does that mean that a post 95 pension cannot be fully drawn down until the person is 65?

Thanks

S
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you are entitled not to be at any loss due to your PRSI status. So they will pay you the supplementary pension if you go before 65 which is effectively the OACP but wth a different name. So you wont be any worse of whether your D1 or A1 PRSI when it comes to going before 65
 
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