39 yrs old - Should I make additional AVC contributions?

[DeBarr]

Hi all

I have a quick query in relation to my public sector pension. I’m 39 years old and joined a State Body 14 months ago. I’ve joined the pension scheme (Defined Benefit) from day 1 but haven’t made any AVC payments yet (i.e. haven’t brought the total age-related contributions I am allowed % wise up to 20%). I did however join the AVC group life scheme which I’m hoping not to take advantage of in the near future ……

I am the sole earner in the family and earn in the region of 55K at the moment (am taking some parental leave on a weekly basis so salary is reduced by 20% to 55K). I used to be a self-employed contractor so I have some pension policies from previous years taken out to max out the tax relief available so I do have some pension coverage already in place from previous years.

My question is given the fact that tax relief on any AVC contributions is at the lower rate based on our circumstances is 20% (single income, reduced salary etc), is it still advantageous to make additional AVC contributions now? I could afford it ok….

Sorry if it seems like a dumb question but pensions are not my strong point……

Thanks in advance,
DeBarr

 

[asdfg]

Can you buy back years or has that stopped. Look at this option first.

I'm almost certain a fairly large slice of your income is taxed at the higher rate so therefore relief will be granted at the higher rate.

The pension scheme is probably based on a years worked basis so if you work to 65 you will get 27/80 plus 81/80 (I think) as a lump sum (3 years for every year worked)
Revenue allow you to fund up to 2/3 of you salary inclusive of lump sum.

Bear in mind that you may not work till 65
The schemes acturies will advise if you are overproviding but I would be very surprised if you are