AVC charges comparison

[myrzopyrzo]

I am age 54 and currently working part time in the public sector. I want to make an annual lump sum contribution from an inheritance to an AVC scheme as my pension will be pretty small in 10 years after raising kids etc. Where can I 'compare' the charges levied by all the different providers of AVC schemes?

Also if I contribute eg 20 k over 10 years to an AVC how much can I take out TAX FREE as a lump at retirement?

M

 

[Early Riser]

Also if I contribute eg 20 k over 10 years to an AVC how much can I take out TAX FREE as a lump at retirement?

The total allowable tax free lump sum in a public sector scheme is 1.5 times your pensionable salary at retirement (that is full time equivalent salary plus any pensionable allowances in your final three years).

If you will have full 40 years service at retirement then your Occupational Scheme should provide this amount and you cannot take anything further tax free from your AVC. If you will have less than 40 years service (but greater than 20, again full time equivalent) then you can top up the tax free lump sum to this amount. I see you are working part time, so it is likely that you will have scope to top up the lump sum.

I don't know about AVC comparative charges. As you are part time this will also limit the size of annual AVC contributions you can make in order to avail of tax relief.

 

[myrzopyrzo]

The total allowable tax free lump sum in a public sector scheme is 1.5 times your pensionable salary at retirement (that is full time equivalent salary plus any pensionable allowances in your final three years).

If you will have full 40 years service at retirement then your Occupational Scheme should provide this amount and you cannot take anything further tax free from your AVC. If you will have less than 40 years service (but greater than 20, again full time equivalent) then you can top up the tax free lump sum to this amount. I see you are working part time, so it is likely that you will have scope to top up the lump sum.

I don't know about AVC comparative charges. As you are part time this will also limit the size of annual AVC contributions you can make in order to avail of tax relief.

Thanks ER . I’ve about 20 yrs full time and 14 yrs p/t pension. I’m now on about 15 k pa and want to top up for the last 10 yrs. I see the pensions authority have a very rough guide to PRSA providers and their charges . Is it ok to pick ANY provider even though they are not necessarily public service related ? I’m thinking of putting in about 3k a year in a lump sum.

 

[Early Riser]

I’ve about 20 yrs full time and 14 yrs p/t pension. I’m now on about 15 k pa and want to top up for the last 10 yrs. I see the pensions authority have a very rough guide to PRSA providers and their charges . Is it ok to pick ANY provider even though they are not necessarily public service related ? I’m thinking of putting in about 3k a year in a lump sum.

I wouldn't know much about PRSA providers but I don't think it should make any difference whether they have any formal public service relationship or not.

If you are currently on €15k annually you are probably not paying income tax ? Without tax relief it is hard to see the value in paying €3k pa into an AVC.

 

[GSheehy]

Where can I 'compare' the charges levied by all the different providers of AVC schemes?

True, the PRSA provider have different options on charges for AVC PRSA's, but it is the intermediaries that decide what level of contribution charge applies to your payment.

The annual management charge is 1%. The contribution charge can be from 0% to 5%. This depends on whether you needed advice for the transaction, or not.

The 0% would be for an execution only transaction.

Gerard

prsa.ie