When I was younger I left a position in the public service and cashed in my pension of 9 years at the time. I am now back in the public service for the past few years and was offered the opportunity to buy back this service at a cost of c10,000 a few years ago. At the time I raised 5,000 and paid this and now I'm looking at buying back the rest. At the moment it would cost around 7,000. I'm thinking that I should try and get this out of the way before the Dec budget as I could claim back tax on it this year and PRSI. The only thing is I'd have to borrow the money... I have just been offered a 6month rate from MB*A of 7.9% on my CC (which is currently clear). Would I be crazy to use this to buy the pension? My plan would be to immediately pay back the amount I'd receive in a tax refund and pay 100p/w till the end of the year as I'd have less PRSI and no tax to pay. At the end of the 6 month reduced interest rate I'd be planning on clearing the remainder from a top-up loan from CU (currently have a 3000 loan with them that I repay at a fixed 50 per week).
Any help would be appreciated, I really would like to get this service back as it would mean that I'd have full pension at retirement age
Any help would be appreciated, I really would like to get this service back as it would mean that I'd have full pension at retirement age