Teacher pension advice

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Clareman

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Hi, occasional lurker here,

My partner is a 58 year old teacher, who plans to work for another 4 years,at least. She has bought back max years on her government DB pension. I am trying to get her to invest in AVC top up. She has contacted cornmarket who were not that helpful or competitive.

I am just retired at 65, with excellent pension both DB and DC we have daughter in college, have no debt and are very comfortably off. We have funds put away for daughters college. I also have prop, shares and cash portfolio. So, no cash flow issues. Both marginal rate tax payers and plenty of disposable income, we live modestly.

Does it make sense to start AVC's now for her and set up an ARF long term ? What is best route

Advice welcome
 
Clareman said:
She has contacted cornmarket who were not that helpful or competitive.
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Sounds like standard for Cornmarket to me.
Clareman said:
Both marginal rate tax payers
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What do you mean by this?
Both low rate taxpayers?
Both high rate taxpayers?
Clareman said:
Does it make sense to start AVC's now for her and set up an ARF long term ? What is best route
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Well putting more away for retirement will presumably allow her to benefit from tax relief and higher retirement income than if she doesn't do this?
The best route is probably something like a low charges (AVC?) PRSA from a discount broker such as those that post here regularly.
Ideally 100% (or 101% to offset any levy?) allocation and an annual management fee of as close to 0.5% as possible perhaps.
 
What are you trying to achieve ?

You say that you live modestly and have no cash flow issues.

Do you want to sacrifice current spending to build up more pension assets ? Do you want to build up an inheritance for your daughter ?

It seems to me your question isn't 'What is the best route' rather 'Where should we be going'.
 
cremeegg said:
It seems to me your question isn't 'What is the best route' rather 'Where should we be going'.
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You're right - it could maybe be better addressed with a Money Makeover post?

Money makeover

Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .
www.askaboutmoney.com
 
If she is pre 95 and retires before 3 months into the calender year of her 63rd birthday she could qualify for 65s benefit. This is discussed in other threads on this site.
 
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S class said:
If she is pre 95 and retires before 3 months into the calender year of her 63rd birthday she could qualify for 65s benefit. This is discussed in other thread on this site.
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Could you let me know what this thread is? I would be interested in investigating, thanks
 
You would have to search for 65s benefit posts by S class.

Basically if she retires early and she already has at least 104 paid A class Prsi contributions, she would then just need to obtain 13 paid A contributions by working in a new job for 13 weeks and then signing on for A class credits. Crucially she would need at least 39 contributions in the calender year of her 63rd birthday. The 13 paid contributions could be included in that year or could be in the previous 2 years. She could work part time for the 13 weeks as she would gain an A class contribution on earnings of 38 euro per week.

Google "operating guidelines for 65s benefit" to get the full qualification details.

Also if she can manage to get at least 260 paid A class contributions she could qualify for a pro rata contributory pension.
 
S class said:
You would have to search for 65s benefit posts by S class.

Basically if she retires early and she already has at least 104 paid A class Prsi contributions, she would then just need to obtain 13 paid A contributions by working in a new job for 13 weeks and then signing on for A class credits. Crucially she would need at least 39 contributions in the calender year of her 63rd birthday. The 13 paid contributions could be included in that year or could be in the previous 2 years. She could work part time for the 13 weeks as she would gain an A class contribution on earnings of 38 euro per week.

Google "operating guidelines for 65s benefit" to get the full qualification details.

Also if she can manage to get at least 260 paid A class contributions she could qualify for a pro rata contributory pension.
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Thanks for the advice: very helpful
 
The 65s scheme is a new one for me to check out, thank you for the info.

I want to maximise her pension in the most tax efficient way. I have significant surplus cash from my tax free and 20% tax DC lump sum. This will not impact our lifestyle. I started AVC's in my early 20's, and have worked for 40 plus years so did well here. Long term planning worked out for me.

On our daughter, we plan to start utilising our individual 3k tax allowance from each of us this year and get her set up in some long term investments, on top of paying for uni etc. We are fortunate enough to separately set her up with a house/apt later when required. The advantage of having only the one!

The immediate issue is sorting out partner, who has no interest in tax planning or investments.
 
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