Cornmarket AVC help

C

Curiousguy

Registered User
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Hi all!
I am 32 in the public sector and signed up to an AVC with cornmarket yesterday. I have two weeks cooling off period so if I have made a huge mistake please help me out. From what I gather there is 450 approx first year fee and none from then on except the 1% fee on what you put in and the avc gains. This reduces to 0.75% at once the fund 40000 and 0.5% at 70000 or something along those lines. It was a free consultation apparently although with those fees not really. Can they be avoided by signing up without a consultation . Apparently it’s best fee structure out there because the union got it? Does anyone know if this is true? Should I cancel it?I was a bit confused after a long day so I may need to double check those figures
 
My question is why a 32 year old is contributing AVC’s? Which public sector scheme are you in?
AVC’s are a very tax-effective method of increasing your retirement benefits. BUT:
- if you are in the traditional DB Scheme with full service(?), what will be the shortfall between your expected DB benefits and the Revenue maximum allowable benefits.
- if you are a member of the new Single Scheme (a hybrid mix of DC and DB) then you still need to estimate whether the projected benefits still fall short of the Revenue maximum (not an easy calculation).
So I would ask whether Cornmarket estimated your main scheme benefits and calculated the possible shortfall, thus allowing for AVC’s. But I would question a 32 year old contributing AVC’s (as opposed to perhaps paying down a mortgage). With your likely years of service it might be more sensible to defer making AVC’s until say late 40’s when the scope for AVC’s (a better estimate of the potential shortfall between the main scheme benefits and the Revenue maximum).
 
I signed up for AVC's when I was younger than you. I stopped for a number of years in and around the time of the crash and I restarted them again two years ago. I'm glad I started so early in my career. I'm planning on retiring at 58 (all thanks to my AVC top up).
 
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