Interested1
Registered User
- Messages
- 4
After much soul searching, I will be taking early retirement (CNER) from a public sector post with 33 years service due to stress related issues at 57.
My last day of service will be April 27th, 2025 and I am trying to get my head around options on best the way to invest €125K lump sum from employer and approx €57K I have in a PRSA AVC with Zurich, currently in cash (1% management charge).
I set up the PRSA AVC in 2023 to avail of tax rebates in 2023 and 2024, and to increase the scope for my tfls over and above the 125K.
For context, my final salary is €111,907, and I will have an annual pension of €29,532.00 from public sector employer, which will increase by another €10,911 pa through supplementary pension when I reach 60, in January 2028, if I am no longer in insurable employment.
I am single and have no dependants and the my mortgage on home ( worth approx 550K) will be cleared from savings next month. I have invested in house energy upgrades in recent years and have achieved BER A3 on 1950's house, incl well functioning Photovoltaic panels & smart meter. Kitchen and 3 bedrooms & 2 bathrooms would benefit from upgrades, but dont think I will do this immediatly (maybe at age 60). I have €20 K in cash savings, and 2023 car paid in full.
I currently have no other investments, and 1643 class A PRSI contributions up to end 2024, and will have a further 52 in 2025, from employment (13 weeks and credits while on JSB) so total by Jan 2026 would be 1695, with entry date of July 1985 (age 17 summer job). I know I need to sign on for credits (or work) in next number of years to get full COAP at age 66.
I intend to sign on for JSB on April 28th, hoping to get the new rates until end of Jan 2026, and I will use this time to find a partime role (probably in a university) from Feb 2026 when the JSB finishes.
So to the questions:
Advice please on how to invest the €125K tfls in low to moderate risk funds for 5 to 10 years.
Some portion of the PRSA AVC could also be taken as a part of the tfls (not able to work this out at the moment, but would welcome advice on how much that might be), but I am wondering if its worth taking that tax free portion or should I convert this in to a vested PRSA or and ARF, looking to take 4% (or more if needed) as additional at age 61.
Thirdly, If I return to work partime in the public sector from Feb 2026 up to Jan 2028 (when I will be 60) how much abatment would apply to my annual pension of €29,532.00, if I were to get a salary of €75,000 from a university. From what I have read in threads here I think it would not be abated (because it will be less than final salary of €111,907) but I find it confusing to figure out.
Finally thank you to AAM contributors-I could not have even written the above summary, if it were not for all I have already learned from reading AAM threads over the years, and I am very grateful for the free financial education!
My last day of service will be April 27th, 2025 and I am trying to get my head around options on best the way to invest €125K lump sum from employer and approx €57K I have in a PRSA AVC with Zurich, currently in cash (1% management charge).
I set up the PRSA AVC in 2023 to avail of tax rebates in 2023 and 2024, and to increase the scope for my tfls over and above the 125K.
For context, my final salary is €111,907, and I will have an annual pension of €29,532.00 from public sector employer, which will increase by another €10,911 pa through supplementary pension when I reach 60, in January 2028, if I am no longer in insurable employment.
I am single and have no dependants and the my mortgage on home ( worth approx 550K) will be cleared from savings next month. I have invested in house energy upgrades in recent years and have achieved BER A3 on 1950's house, incl well functioning Photovoltaic panels & smart meter. Kitchen and 3 bedrooms & 2 bathrooms would benefit from upgrades, but dont think I will do this immediatly (maybe at age 60). I have €20 K in cash savings, and 2023 car paid in full.
I currently have no other investments, and 1643 class A PRSI contributions up to end 2024, and will have a further 52 in 2025, from employment (13 weeks and credits while on JSB) so total by Jan 2026 would be 1695, with entry date of July 1985 (age 17 summer job). I know I need to sign on for credits (or work) in next number of years to get full COAP at age 66.
I intend to sign on for JSB on April 28th, hoping to get the new rates until end of Jan 2026, and I will use this time to find a partime role (probably in a university) from Feb 2026 when the JSB finishes.
So to the questions:
Advice please on how to invest the €125K tfls in low to moderate risk funds for 5 to 10 years.
Some portion of the PRSA AVC could also be taken as a part of the tfls (not able to work this out at the moment, but would welcome advice on how much that might be), but I am wondering if its worth taking that tax free portion or should I convert this in to a vested PRSA or and ARF, looking to take 4% (or more if needed) as additional at age 61.
Thirdly, If I return to work partime in the public sector from Feb 2026 up to Jan 2028 (when I will be 60) how much abatment would apply to my annual pension of €29,532.00, if I were to get a salary of €75,000 from a university. From what I have read in threads here I think it would not be abated (because it will be less than final salary of €111,907) but I find it confusing to figure out.
Finally thank you to AAM contributors-I could not have even written the above summary, if it were not for all I have already learned from reading AAM threads over the years, and I am very grateful for the free financial education!