I started in 1996 so on the post 95 scheme. Have an allowance but it's pensionable and no overtime in teaching.
I started in 1996 so on the post 95 scheme. Have an allowance but it's pensionable and no overtime in teaching.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.
Yes, married with 2 kids. Seperately assessed,wife would be earning about 35k currently...she has no pension at all(but hoping to start one soon,but won't have much come her retirement time)I'm on about 84k currently. Thanks for the input so far. Just looking for advice on best way to save for retirement.....I'm still unsure whether to do full service or get out in 7 or 8 years.Are you married? Jointly assessed? Will your wife have similar pension income? Currently the 20% band can go to €88,000 joint.
So (all into days terms) your max pension with full service, including the State Pension, is 42k. But you could receive up to 53k before going into the 40% rate. And that would still allow your wife to receive/earn up to 35k. So you do have scope to add to your pension via AVCs without facing the higher rate at drawdown. Of course, if you were to receive significant promotion to bring your salary closer to 106k (in todays terms) it would be a much tighter call.Seperately assessed,wife would be earning about 35k currently...she has no pension at all(but hoping to start one soon,but won't have much come her retirement time)I'm on about 84k currently
Thanks for that,all very helpful advice.So (all into days terms) your max pension with full service, including the State Pension, is 42k. But you could receive up to 53k before going into the 40% rate. And that would still allow your wife to receive/earn up to 35k. So you do have scope to add to your pension via AVCs without facing the higher rate at drawdown. Of course, if you were to receive significant promotion to bring your salary closer to 106k (in todays terms) it would be a much tighter call.
And if you are going retire early you should definitely look at AVCs. But it all depends on whether you can afford it.
So is an avc a bit pointless if I do full service and get hit with 40% on exit? Or is there still some value in them? And is there a better investment strategy for someone like me.....who basically doesn't know yet when they're going to retire!! My wife will definitely work until late 60's as she has no pension at all
Great,thanks again. Honestly, the only promotion that I may get will give me an extra €6000 or so. No interest in going for principalship. So it looks like AVC's could be a runner for me. Can I ask, what other option would you go for if not going for an AVC?Opinions differ on whether it is worth building up an AVC if income drawdowns are likely to face 40%. Personally I wouldn't go for it. But if you were on a full service pension based on your current salary you could draw up to 10/11k annually from an ARF without hitting 40% - that is a big drawdown. Of course you may get significant promotion in the interim but short of that you should not be facing 40% at drawdown. With full service you can't use the AVC to increase the tax-free lump sum but you can transfer it to an ARF (or Annuity if you prefer).
You could invest into a unit funds scheme run by, for example Zurich.Can I ask, what other option would you go for if not going for an AVC?
Can I ask, what other option would you go for if not going for an AVC?
Yes,I looked into notional service and received a ridiculous quote. Most people have advised me not to go with notional service and best options are AVC's or an investment fund. Thanks for all your help and advice. Very helpful especially for someone like me who doesn't know much about these things at all.If you are likely to have full service at retirement then notional service is not an option. I don't know beyond that. I assume you are not carrying debt. Good luck anyway!
Wouldn't it be more tax efficient to invest directly in shares subject to CGT?You could invest into a unit funds scheme run by, for example Zurich.
This could be the same units that AVCs are invested into.
You won't get income tax relief but you won't be liable for income tax when you make withdrawals.
All taxes are included in these schemes so you don't have to figure out the ridiculously complicated Irish exit tax and 8 year rules.
One advantage is that you can withdraw from these schemes at any time. You are not tied in up to the time you take your Public Sector pension.
Is CGT 33%? I'd definitely need financial advice on investing in shares. I'd be scared I'd lose it all.....my paddy power account is proof of that!!Wouldn't it be more tax efficient to invest directly in shares subject to CGT?
Yes, but there is a lot of effort involved. You would also need to be interested in researching shares and be constantly ready to buy and sell individual shares. There would also be costs involved in keeping stockbroker accounts.Wouldn't it be more tax efficient to invest directly in shares subject to CGT?
Yes, and there's an annual personal exemption of €1,270 and previously incurred losses can be offset against gains in order to reduce one's CGT liability.Is CGT 33%?
There are lots of existing Askaboutmoney threads, including a few recent ones, that have useful info and advice. Check out the Investments forum.I'd definitely need financial advice on investing in shares.
Your first mistake here is comparing investing in shares with gambling.I'd be scared I'd lose it all.....my paddy power account is proof of that!!