AVCs with full service

Repeat away Conan.

The only calculations I do are my own ones.

Quick tot up

Almost full service PS pension benefits
+Tasty extra tax free lump from AVCs
+Juicy monthly drawdowns from large ARF
+ Qualification for Lion's share of Contributory Pension funded mainly from ARF
S class Prsi
=That was good planning.
 
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bstop said:
Repeat away Conan.

The only calculations I do are my own ones.

Quick tot up

Almost full service PS pension benefits
+Tasty extra tax free lump from AVCs
+Juicy monthly drawdowns from large ARF
+ Qualification for Lion's share of Contributory Pension funded mainly from ARF
S class Prsi
=That was good planning.
Click to expand...
Conan is one of the most helpful posters I know and clearly has a deep understanding of public service pension related matters. Conan has helped me and many others in the past and is a valuable member of this community.

Your posts, on the other hand, come across as aggressive gibberish. My overriding sense is that you have no idea what you’re talking about.

“See #71 and use basic maths”

Really? Wow, so helpful.
 
bstop said:
Repeat away Conan.

The only calculations I do are my own ones.

Quick tot up

Almost full service PS pension benefits
+Tasty extra tax free lump from AVCs
+Juicy monthly drawdowns from large ARF
+ Qualification for Lion's share of Contributory Pension funded mainly from ARF
S class Prsi
=That was good planning.
Click to expand...
This makes no sense. You seem to think that Revenue limits don’t apply.
 
Conan said:
If you are in a DB scheme, the max overall pension you can get (inclusive of any AVC pot) is 2/3rds Final Salary (inclusive of the Retirement Lump Sum) plus a Spouses Pension on your death in retirement of 100% of your pension plus indexation up to a max of CPI.
So depending of your DB benefits, service etc, you need to make sure any AVC'S will not lead to overfunding. So you should consult with your scheme advisors to ensure you aren't likely to overfund.
Click to expand...
 
Another great post.

So if I retire at 60 Post 95 A stamp, normal retirement age 60.

do I have to have the AVCs in place to cover the state pension before I retire or can I do it before 66 and the draw down of the state pension.

Typically how much of an AVC would be needed to fund the AVC 260k.

Also my pension is such that I am a high rate tax payer and I will be paying high rate on the pension the AVC will purchase as I woukd be paying 40% on the additional pension and getting tax relief at 40% on the way in.
 
Another great post.

So if I retire at 60 do I have to have the AVCs in place to cover the state pension before I retire or can I do it before 66 and the draw down of the state pension.

Typically how much of an AVC would be needed to fund the AVC 260k.

Also my pension is such that I am a high rate tax payer and I will be paying high rate on the pension the AVC will purchase as I woukd be paying 40% on the additional pension and getting tax relief at 40% on the way
 
Hi Conan
Thanks for your very helpful contributions
I stopped funding my AVC in 2010 but it has performed extraordinary well .
As I hope to retire at 60 with 37 years service (including added years) it seems that I have unwittingly overfunded.The trustees have never been in contact only to suggest moving tge fund initially to a lifestyle fund.
I do not have an integrated pension so I assume my public service pension is reduced to stay within allowable limits .
Is the reduction based on annuity rates prevailing at time of retirement ?
Thanks
 
The original advisor/sales person had difficulty understanding my issue .
His recently appointed replacement is to check with HQ .
 
Comeby said:
I will have 38 years service at 60 (including professional added years ) and invested in a New Ireland AVC during 2006-09
Click to expand...

This dates back to last December. It's clear from your replies that the advisors are incapable of doing a max funding quote to factually establish that you are/might be overfunded so they're just going to pass it on to New Ireland anyway.

You'd probably be faster if you had a stab at it yourself, if you had all the (accurate) information that's needed on the inputs for a tool like this


Gerard

www.prsa.ie
 
Comeby said:
I stopped funding my AVC in 2010 but it has performed extraordinary well .
As I hope to retire at 60 with 37 years service (including added years) it seems that I have unwittingly overfunded.The trustees have never been in contact only to suggest moving tge fund initially to a lifestyle fund.
I do not have an integrated pension so I assume my public service pension is reduced to stay within allowable limits .
Is the reduction based on annuity rates prevailing at time of retirement ?
Thanks
Click to expand...

There is a lot of incorrect information in this thread regarding AVCs with full or almost full service.

It is allowable to have very large AVCs in your situation.

Read this post. It applies to all Public Sector employees.

AVC information for pre 95 Public Sector employees.

Can these employees make AVCs ? Yes. They can make AVCs based on non pensionable wage payments and to make up for any shortfall if they don't have the full 40 years service at retirement age. They can also make AVCs to fund for the revenue allowed 100% surviving spouses pension. The public...
www.askaboutmoney.com
 
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Thanks S class ...cheers me up for the drive home after a sad evening in Thomond Park ....i’ll run the figures tomorrow
 
Quick question...and probably a stupid one! I'm a 50 year old teacher with no AVC's but thinking of getting them. I'll probably do full service. I'm aware of the 40% tax break on investing them....but if I do full service I'll probably get taxed at 40% going out as I'll be outside the 20% tax band. So are AVC's pointless then? And if so,is there a better alternative?
 
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If you are pre 95 and trying to get a portion of the state contributory pension it's definitely worthwhile.

You might also get some extra tax free pension lump sum.
Do you have any non pensionable allowances or overtime.
 
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