Wife 67 earning 34k - Avc?

[stoves1]

I am retired on a public service pension of circa 35k, my wife is a HSE employee aged 67 earning circa €34k between HSE & full contributory OAP she works week on week off for past 22yrs and intends staying ther till aged 70, is there any point in her starting an AVC to benefit from paying tax on all income atm? many thanks

 

[Dave Vanian]

She can only contribute an AVC to bring her up to 40% of her HSE income.

Given that she's probably paying tax at 20% now and will probably be paying tax at 20% when she retires, I'd limit the AVCs to just the amount she can withdraw as a tax-free lump sum at retirement.

 

[Ruffian]

I'd limit the AVCs to just the amount she can withdraw as a tax-free lump sum at retirement.

And that depends on her total years of pensionable service. If she has at least 20 years she can top up to 120/80 of pensionable salary/emoluments. There is a sliding scale for shorter service: https://www.revenue.ie/en/tax-professionals/tdm/pensions/chapter-07.pdf