Dazed&Confused
Registered User
- Messages
- 16
How old are you And when will you retire?
so:
- what type of fund(s) is your AVC invested in ?
- who is the fund manager?
- what is your timeframe to retirement?
- what’s your objective in contributing AVC?
Great - you have addressed my motivation for asking the question. Thank you Conan.If you contribute to an AVC fund along side a DB scheme, the two are separate. The AVC scheme is effectively a series of individual DC funds . So if the DB scheme became underfunded it has no affect on the attaching AVC. You could establish a separate PRSA AVC , but is possible (probable?) that the attached AVC is more competitively priced.
Just so I clear - do you mean I can't access the AVC until I access my DB scheme at 65?its worth pointing out that under Revenue rules you cannot contribute to an AVC with the specific intention of retiring early. Under Revenue rules there are maximum benefits which can be provided under Pension Schemes , eg
- pension of 2/3rds Final Salary (before communing any for a lump sum)
- spouses pension on your death in retirement
- indexation in payment
By "Revenue maximum", is that the €2M (Standard Fund Threshold)?In calculating how much AVC you can invest you have to assume that you are retiring at nor retirement age. So to what extent will the normal retirement benefits fall short of the Revenue maximum? That’s your scope for AVCs. If you do actually retire early, your main scheme benefits will be reduced (significantly if you retire at age 55) but the Revenue maximum is also reduced reduced.
So in determining how much AVCs you can contribute you need professional advice. I assume Mercer have checked the numbers?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?