In practise, this is more complicated. Post 95 PS workers who wish to retire at 60 under the teachers scheme would be required to bridge the gap between this age and state pension age. They can do this by claiming JSB and supplementary pension but I think can be a difficult process. Only those in the Pre 2004 scheme still have 60 as a retirement age. The main point I was trying to address was that the state pension is not paid in addition to this pension, but is included in it.Note that after the pre 1995 and post 1995 schemes are designed to deliver the same value of benefits.
A worker with 40 years service under each scheme would get the same value of benefits.
Thanks Protocol, I hope nobody is trying to peddle that kind of nonsense any more. Talk about money for old rope.Yes, I see the TUI scheme has a 2% contribution charge although this seems to be from 2017:
Thanks Protocol, I hope nobody is trying to peddle that kind of nonsense any more. Talk about money for old rope.
Where/Who do I ask for service to be added to my current teacher / DES pension please
Remember any additional service deemed reckonable is really valuable to but it will require perseverance, I expect.Getting your service verified by the relevant organizations can be challenging
And they do not have much interest or knowledge about Purchase of Notional Service, which is not surprising given that their objective is sale of AVCs.The problem with the few brokers who do specialise in public servants is that their main aim is to sell AVCs. Undoubtedly some of them have gathered a lot of experience and expertise on the workings of the main schemes, but I get the sense that this is only used to assist the AVC sale.
You mean the crowd who are in cahoots with Cornmarket for AVCs?Would the Nurses’ Union be able to give you any guidance?
Would the Nurses’ Union be able to give you any guidance? They must be getting similar queries from time to time
And they do not have much interest or knowledge about Purchase of Notional Service, which is not surprising given that their objective is sale of AVCs.
Notional Service is a good option for some people.
It's not that difficult for an advisor (any advisor) who's selling AVCs in the advice space to establish the costs of the notional service for a client, then compare that with a projection on an AVC at the same end date and then outline the advantages and disadvantages of both options for the individual.
My best guess is that if the charges on AVC or PRSA AVC are high (1%+ AMC and contribution charges etc.) then the NS might win (assuming the client understands the inflexibility of that path).
If the advisor made it clear from outset that i) if NS path is chosen/recommended there's a fee of (say) €750 and ii) if AVC/PRSA AVC path is chosen/recommended then charges on the ACV product are 1% AMC + 2% contribution charge then that's a fair price for a fair service.
But, if that was available it's highly likely that the vast majority of people that are reading these pages would baulk at both options and arrive at the conclusion that an execution only product with 100% allocation and an AMC of 0.60%/0.75%, coupled with the risk of an investment strategy of 100% equities would probably beat the pants off the NS option over the longer term. And, that if they still wanted the certainty of what NS offers at retirement age they could buy an annuity with some/all of the fund value.
I cannot see anyone setting up a business to counsel public servants on NS and just wait for the few to knock on their door. Actuaries price NS. Actuaries price AVCs. I seriously doubt that they 'no brainered' one option over the other when thry devised the tables for pricing NS, which was many moons ago and product pricing was totally different.
willing to pay a reasonable fee
I honestly think that if it was a viable proposition/business then someone would be doing it already.
At the end of that session on the technicalities of the PS scheme would be the inevitable question of 'What do you think I should do?' and, when the reply is 'You have to get separate advice on that'
This is what I am not sure about in relation to purchase of referable amounts on the Single Pension Scheme.And, that if they still wanted the certainty of what NS offers at retirement age they could buy an annuity with some/all of the fund value.