Do you have to take AVC on same date as retirement

M

meadow

Registered User
Messages
73
My spouse is public sector and also has an AVC.

On retirement at 60 does she have to convert the AVC to an ARF at the same time or can she delay until later.

Thinking is that if equities are down at retirement she can wait for a recovery before taking her AVC tax free lump sum and converting to ARF.
 
If the AVC is linked to her Public Sector scheme, then YES she must access the AVC fund at the same time that she accesses her main pension. So once she retires from the main scheme, her options as regards the AVC fund are:
- use some or all of the AVC to maximise her tax free lump sum (if she is not getting the Revenue max from the main scheme)
- any balance of the AVC can be invested into an ARF or used to buy an Annuity
 
Thanks Conan
The AVC is through Cornmarket and deductions are through payroll.

Is that what you mean by linked to her public sector scheme ?
 
It is very likely that the AVC claims will not happen for weeks or months after the main scheme pays benefits. That's the nature of those claims, at present, and the delays appear top be getting longer.

You cannot deliberately defer drawing down benefits from an AVC / PRSA AVC. That would be in contravention of the Revenue rules that govern these types of arrangements.

Gerard

www.prsa.ie
 
GSheehy said:
You cannot deliberately defer drawing down benefits from an AVC / PRSA AVC. That would be in contravention of the Revenue rules that govern these types of arrangements.

Gerard

www.prsa.ie
Click to expand...
Is this correct ?

The Zurich AVC PRSA choosing your retirement options form allows, if taking option 2, to invest the remainder of the AVC fund into a Zurich PRSA.
 
I instruct and authorise Zurich Life to leave the remainder of my AVC PRSA Fund (after payment of my Retirement Lump Sum) invested in my existing Zurich Life AVC PRSA (also known as a Vested-PRSA).

....which is a post-retirement (maturity) product.


Gerard

www.prsa.ie
 
The max AVC pot depends on what your benefits will be under the main scheme. There are overall Revenue limits on the benefits which can be provided combined between the main scheme and any top up from the AVC pot.
 
Dublin85 said:
is there any way of finding out what max avc pot can be without over funding
Click to expand...

The maximum benefits from a pension scheme would be very expensive indeed, especially as you're married and I see that you are in another thread. As a very rough example, someone on a salary of €50,000 with long service could accumulate a total pension fund (including AVCs) at retirement of well over a million without any fear of being over-funded. It's quite rare for over-funding to occur in practice.

If you ask the broker dealing with your AVC to do specific maximum funding calculations for you, they should be able to do that for you easily.
 
An unmarried worker can also make large AVCs because of the possibility of having a spouse and children after retirement age. People often marry or remarry in later life. You could marry a very much younger partner and have several children. The cost of a widows or widowers and children's pension could be enormous.
 
Last edited:
Conan said:
The max AVC pot depends on what your benefits will be under the main scheme. There are overall Revenue limits on the benefits which can be provided combined between the main scheme and any top up from the AVC pot.
Click to expand...
thanks Conan. I remember you advising me before that if I retire on full defined benefit pension that it's possible to overfund. I just never found out what that figure would be.
 
Dublin85 said:
I remember you advising me before that if I retire on full defined benefit pension that it's possible to overfund. I just never found out what that figure would be.
Click to expand...
See here

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

Post 95 employees would have potential for larger AVCs because they can also fund for the shortfall due to the integration of the Contributory pension into their Public Sector pension.
 
Last edited:
You must log in or register to reply here.
Menu
Log in
Register